By Chris Becker
Remember to read “Trading Week“, which is normally published for free Saturday morning (but is moving to a new timeslot and format), to put these events and ideas in context.
Unicorns and rainbows today across the ASX200, up almost 80 points or nearly 2% to 4136 points, in a clear breakout from the sideways moves of the past weeks:
Forgive the candles on the daily chart above, but it makes the short term point. Its obvious that the next stage the local bourse needs to dig itself out of the hole it created by falling off that red uptrend line to the left – i.e back above 4200 points and the 200 day moving average. And then the next stage is quite clear, if we look at the medium term picture again:
The same is being repeated across Asia, with the Nikkei 225 up nearly 1.8%, the Hang Seng up 1%, whilst the Shanghai Comp is disappointing, only up 0.4% at the moment. Early days yet…
On currency markets, the big moves after this mornings partying were in NZD – up against the USD to 79.23 and against the Pound and Yen which is interesting…. The Aussie remains just below 1.01 after shooting ahead of itself, whilst gold continues to disappoint me, still trying to breakout above the key level I identified previously (at $1625USD an ounce) and is currently at $1619 USD an ounce, down nearly 0.5% or in AUD terms down nearly $20 at $1603AUD per ounce
Other commodities are up, (notably silver is down the same as gold, but platinum is up strongly – will be an interesting night on the LME too) with energies up around 0.5%.
Finally, in the debt markets today, we saw the expected selloffs in Aussie 10 years, with yields gaining almost 9 points to hit 3.07%
Bond markets have opened in Europe with selloff continuing there, as world capital returns to risk markets, with red across the screen fairly evenly, whilst all bourses are up around 1% or so, with unicorns trampling over verdant fields in Europe. US stock futures look good too, expect the ebullient mood to continue.
BREAKING: just as I pressed “publish”, Spanish and Italian bond yields rocketed up over 10 points each (there were already up in early trade), with yields above 7% and 6% respectively. That was a quick holiday. I do remember Delusional Economics keeping on reminding us that the real game here is not Greece – its a sideshow for your entertainment only.
Tonight
After all the excitement of this morning (I’m buggered, stayed up last night and worked through today to watch it all)there are no major data releases or announcements scheduled for tonight, thank Dog.
You can still find me on Twitter here in between naps. This remains a funny market and one where you need to manage your risk more than ever. And use a filter or three because there’s always more noise than signals. Step back and look at the market calmly and from 10,000 feet. You’ll be surprised how clear it is up there away from the noise.
Disclaimer: The content on this blog should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation, no matter how much it seems to make sense, to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The authors have no position in any company or advertiser reference unless explicitly specified. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult someone who claims to have a qualification before making any investment decisions.