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Big iron is taking it in the team again today as BHP and RIO fall -1.8% while FMG continues its delusional levitation at -1.3%:

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Dalian has recovered a couple of points from overnight.

Big gas is mixed as WPL is flat, OSH -0.3%, STO 1% but ORG -1.7%:

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Gold is also mixed with NCM -1.9%, IGO -1.5%, SBM 1.3%, RRL 3.8% and EVN 0.5%:

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Finally, banks are still unhappy despite their solid performance in debt markets with CBA -08%, WBC -0.7%, ANZ -0.8%, NAB -0.8%, BOQ flat, BEN 0.4% and MQG flat:

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It’s time once again to brush off the monster CBA head and shoulder top pattern which is still in force on the daily chart where a break of the $68-70 range would be very bearish:

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The weekly chart:

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And the monthly chart which already has a broken neckline targeting high $40s:

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Could we get there without an Australian recession? I think so. GFC lows would be targeted if it all turned into a serious global shock.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.