ASX rout resumes: Houses demolished, holes boom

See the latest Australian dollar analysis here:

Macro Afternoon

AUD is still strong this morning, partly explained by a falling USD and partly by bullet-proof bulks:

Aussie bonds have actually under-performed other nations during the correction. I assume it’s because of the bullet-proof bulks but whatever it is it’s badly misled as the housing crash gathers steam:

XJO is down modestly against today:

But under the bonnet the rotation is huge. It’s all about dirt now and the hope that China will build to Mars:

Big Gas is smashed though:

Big Gold is cheering as Trump sits on the USD. I don’t expect that to last:

Big Mortgage is still getting hammered. CBA has now broken support and is in free fall with WBC:

Big Realty has finally capitulated as well. REA is crashing away from an immense double-top. DHG is being slain on crap earnings. GMA is approaching post-float lows. A break on that would be a very bearish signal for house prices:

And the Aussie tech bubble is bursting:

China to the rescue for miners. Shame about Straya.

David Llewellyn-Smith
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  1. With capital fleeing the major banks what is the risk to capital buffers?
    Furthermore, how do they recover capital, through profit, raise rates? Or pay less dividends? Sell subsidiaries? Close branches?

  2. I’m quite tech heavy (CSL, ALU, already out of NXT). Sell stops still not breached, but we were getting close. Looks like there is some support this morning. Back to wait and see.

  3. Why I Moved from California to Texas (Career, Family, Costs) … Edward Jay … Youtube

    … Edward with his family, appear to be living OK in the $US150,000 Dallas home paying $950 a month rent … as ‘refugees’ of California …

    Why I Moved from California to Texas (Career, Family, Costs) … Edward Jay … Youtube
    Demographia International Housing Affordability Survey: All Editions