ASX Shares Daily – 25th July

Advertisement

By Chris Becker

These daily updates need to be placed in context with the longer trends and drivers amidst the overall technical picture, so head to Macro Investor for a free trial. Former “Trading Week” readers will find it reborn asTechnicals“, published 8.30am each Monday morning.

Markets around Asia today were singing the same tune “red, red, red” – with the ASX200 down 9 points, or 0.2% closing at 4124 points – see the full list of movers/shakers and sectors at bottom of the post.

The Nikkei 225 continued to fall whilst the Shanghai Comp is failing to lift off the deck, right on its intraday December 2011 lows, with the 200 day moving average providing strong overhead resistance. As I said yesterday, there’s money to be made on a rebound rally from these levels, but the risks are high:

On currency markets, after the CPI print today, the Aussie made a small rally this morning, but is still where it was 24 hours ago and remains under pressure in the very short term at least.

The Euro/USD just spiked a few minutes ago – up nearly 40 pips alongside European equity markets, after the ECB’s Ewalk Nowotny (head of the Austrian central bank) said that the ESM (the permanent bailout fund…) should be granted a banking license… (you know, to print money..cough)

US Dollar Index (DXY) of course traded places but its still up strongly and remains in its uptrend:

Gold (USD) –  do something!!!! We’re getting closer to a resolution between the bears, bugs, bull’s and bromides here with the anti-dollar – note the short term pattern is coiling up, in coil like fashion, like a big coil:

In AUD terms, the precious metal/pseudo currency/real money/speculative commodity has bounced back a little, but also remains under pressure, now at $1548AUD per ounce.

Australian Stocks

Looking to the table at the left showing all the sectors and ASX8 stocks (the top four banks – Megabank – and the top four miners) there’s not much to talk about really.

Healthcare was up (like in the CPI, which for some reason, most economists don’t give a rats arse about – one called it boring? I hope he has nice children to pay for his healthcare costs….)

Energies were off slightly, and the financials were mixed as NAB (the only division of Megabank that Macro Investor is long) was the winner today.

If you missed my article earlier today about Macquarie – here’s the chart with our short entry noted:

 

Here’s today’s top movers and losers:

Lots of volatility in the mining space no? Just like our economy, the bourse is made up (too much) of minerals/materials related stocks.

The index itself – note the huge amount of intraday buying today – the uptrend won’t quit!

 

The medium term technical picture here remains unclear with support at 4000 points and resistance at 4220 or so (the 200 day moving average) asthe key levels to watch.

Don’t miss the overnight market updates by my colleague Greg McKenna, in MacroBusiness Morning tomorrow morning.

Chris Becker is an investment strategist at Macro Investor, Australia’s independent investment newsletter covering stocks, trades, property and fixed interest. Each week Macro Investor publishes tables on the top ten most undervalued and overvalued stocks on the ASX. A free 21-day trial is available at the site.

You can follow Chris on Twitter.

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.