By Chris Becker
Its a win for Obama and some certainty for global markets! Aussie stocks rallied in response with the ASX200 leaping at the close to be up nearly 1% – see the table below and for technical analysis of the ASX200.
Other Asian markets were a bit more subdued, with the Hang Seng putting on a few points and the Shanghai Composite edging up only slightly, whereas Japanese markets remain a bit wobbly.
The Aussie (AUD/USD) was up about 20 pips and has broken free and we’ll probably see USD weakness for a bit – until the markets realise theres now a big cliff standing in front of the President:
Gold (USD) soared on the news in what has been a very volatile couple of months for the precious metal, bouncing off support at the 200 day moving average:
Australian Stocks
As you can see from the summary table its a fairly wide rally across the bourse, although industrials didn’t find many bids today. Materials are doing well and I reckon there’s a sector rotation going on here, led by BHP and Rio Tinto (RIO):
Let’s hope so because as I said yesterday, if the financials sector falls over after 3 of the banks go ex-dividend Thursday and Friday, the materials better take up the reins or the ASX200 – which is 40% financials.
For the index, although we’ve had a trendline break, its still above support and the 50 day moving average – all clear for now? US futures are off currently – the markets like certainty, but beyond the presidential election, it looks like the Congress will be controlled by the Republicans…..ruh roh.
This free daily update should be read alongside Live Trades articles, published every morning at Macro Investor, and placed in context with the longer trends and macro drivers within the overall technical picture, where Former “Trading Week” readers will find it reborn as “Technicals“, published 8.30am each Monday morning at Macro Investor. 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. 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.