The S&P/ASX 200 Index again started off shakily as the Greek parliament “voted” for another austerity package to save its economy, and then jumped out of the gates and climbed solidly for most of the day, rising almost 1% or 39 points to 4285 points taking back all of Friday’s losses:
I mentioned on Friday that this chart does not look good as the market just refuses to break free and go over 4300 points to follow its outperforming US (and European) brethren. This theory continues to hold until a break of the 200 day moving average is made – and in my opinion, it will do so in conjunction with US and EUropean markets breaking new highs, thus allowing the ASX200 to reach for 4500-4700 points.
Other Asian markets responded well to the Greek suicide, with Japan’s Nikkei 225 up 0.5% to 8995, with the volatile Hang Seng currently up 0.7% to 20928, whilst the Shanghai Composite is currently up 12 points at 2364 points, dicing with its long term downtrend channel, but not forming any short or medium term bullish reversal pattern, so no confirmation yet:
The AUD is basically flat, dipping to be just above 1.07 against the USD, and now making traction hitting 1.074, whilst WTI crude put on almost exactly 1%, at $99.65USD per barrel. Gold had an okay day during the Asian session with a wild spike on the spot market early, before climbing steadily to $1730USD an ounce, whilst in AUD terms the shiny metal is currently at $1608AUD an ounce, down $5 for the day.
Movers and Shakers
Unicorns and maybe a rainbow or two, as all sectors but REIT were up, with materials stocks leading the way alongside staples.
Checking out the ASX8 (the top four banks and miners who collectively provided more than 90% of profit growth last year), it was a positive day for the banks, as all but NAB have now strengthened their profit position (in the eyes of investors, who ignore the balance sheet at their peril) with the historic out of cycle rate rises.
ANZ was up over 1.6%, now above its 200 day moving average and building on its short term uptrend on the daily charts, whilst the big brother of banks, the Commonwealth (CBA) was up just under 1%, going back above resistance level of $50 per share and remaining in a “bullish neutral” position.
National Australia Bank (NAB) was up 1.4%, bouncing off support at $23 per share but still neutral in condition (it needs to raise rates!!!), whilst Westpac (WBC) was also up 1.4%, just below its 200 day moving average and also remaining in a neutral stance, but building a bullish case nonetheless.
Quickly checking out Macquarie (MQG), the Millionaire Factory now above $25 per share resistance level, up another 1% building on its breakout and also above its long term moving average. A good trade this one…investment however???
To the holes, where BHP Billiton (BHP) was up just under 1% – just like the market – and seems stuck for now as investors digest the macro and micro news around the Big Western Australian. Its “twin” Rio Tinto (RIO), was up only 0.6%, dicing with its 200 day moving average and resistance at $70 a share.
Gold miner Newcrest Mining (NCM) shot out the gate, up over 3%, after reporting a 50% rise in profits on Friday and looms large in the latent lacky lollygaggers looking for lucid lucre.
To finish out the ASX8, Woodside Petroleum (WPL) finished up 0.5% taking back Friday’s losses and still grinding away a short term uptrend on the charts.
The overnight futures for the ASX200 are down 3 points to around 4280 while other equity futures are playing catchup with the Greek vote, with the US futures up 0.5% alongside Europe going into the European session with no significant data releases to spook the markets.