It’s another tough day for shares despite the overnight rally in the US as banks and miners take heat. Leading the pullback is CBA down -0.7% and right at the brink of a new low for the selloff, WBC is -1%, NAB -1, ANZ -1%, BOQ -1%, SUN -0.6% and BEN -1.3% and in free fall:
CBA fell right to the neckline of its massive neck and shoulders topping pattern this morning and bounced:
CBA volume is 90% above average for this time of day!
That suggests to me that a lot of people are selling on Jonathan Tepper’s grim predictions of a 30%-50% fall in property prices and 80% fall in bank share prices.
New lows on massive volume is a very bearish sign technically.
Retail brokers say wealthy clients who have been long-time holders of bank shares are finally dumping stock after refusing to take profit in recent years as banks hit record highs.
Of course there has been an equal amount of buying, but at lower and lower prices.
CBA hit a new 2.5 year low of $70.06 this morning. Last down 0.7% at $70.75.
This has totally blown my bullish view out of the water.
In now expect a fall to $60 a share – 50% of the post GFC rise – in the next year.
First support is $68.94 – the 38.2% retracement.
With respect, it couldn’t be the Mining GFC and unraveling negative gearing debate could it? Short interest is at its highest since the European crisis:
Miners are also on the nose as BHP’s shocker continues to sink in down -1% and RIO -1.5% but FMG 4.2% to the good with upgrades and Dalian firm again today:
Big gas is also bid with oil with though WPL is down -1%, OSH is up 1%, STO 0.7%, ORG 2.4% and LNG 3%:
