By Chris Becker
A bullish day across Asia following the European markets last night as Hurricane/Superstorm Sandy (needs a more aggressive name, but I guess there’s been a few angry women called Sandy hey?) made landfall in the US last night. The ASX200 closed up 31 points or 0.7% to 4517. I’ll take a closer look at the bottom of the post including technical analysis of the bourse.
The Nikkei 225 came back 1% after yesterday BOJ announcement, but still hasn’t broken out, with the Hang Seng also up building on its uptrend while the Shanghai Composite was up slightly, and still in my opinion in a bull trap.
The Aussie (AUD/USD) as the risk proxy could be breaking out again, although we have increased speculation the RBA will cut again next month leading up to Christmas – indeed a lot of retail stocks are moving up in anticipation of easing monetary conditions:
The Euro and US Dollar Index (DXY) swapped positions once more with the former slowly moving up, whereas gold (USD) is also building on short term support above $1700 level:
Australian Stocks
So some big moves today – healthcare stocks up nearly 2% mainly on CSL which continues its major uptrend, up 2.4% today. In ASX8 stocks (the top four miners and banks), the winner today was Newcrest (NCM) bouncing off the key level at $26 per share, which I identified earlier this week at Macro Investor:
The index remains exactly on trend – what else can be said? Oh, that its extremely overvalued? Yes.
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Chris Becker is an investment strategist at Macro Investor, Australia’s leading independent investment newsletter covering stocks, trades, property and fixed interest. A free 21-day trial is available at the site.
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