While the flock of bullhawks grows ever larger chasing illusory Australian rate hikes, the stock market is in no doubt about what that means as it screams policy error! The ASX200 is down sharply today and it’s near perfect bearish descending triangle pattern is ready to break to the downside (noting that that is meaningless until it happens):
Dalian has been smacked to new lows at the open:
Big Iron is free fall with FMG, with increasingly persuasive double-tops in for the majors:
Big Gas is mixed with the number one Pensioner Killer, Santos, roaring ahead as corpses pile up:
Big Gold is getting hosed with more pain ahead in my view:
Big Bubble is also down when it should be up. Rate hikes at the turn of the cycle ought to lift the yield curve and drive earnings. But we all know what will really happen if the RBA hikes:
Big Liar is down too as the same prospect gives it the house price jitters:
Finally, today, the bullhawks remain in control of the bond market as yields roar towards 2017 highs:
Plenty of value there…
