Fed hands ASX a dead cat

AUD is down during the morning after the big spike:

Bonds are bid again:

XJO is up meekly:

Big Iron is up and away. I still think RIO is fundamentally well positioned and hope that head shoulders top dissipates!

Big Oil is up, wrongly. OPEC looks ever more snookered by Kashoggi meaning oil must go lower to cap US shale:

Big Gold may get a run for bit on the a softer DXY. Then again, it’s hardly collapsing:

Big Banks are getting more rubbery pussy action as yields fall:

Big Realty too:

It’s your classic dead cat bounce.

Comments

  1. Think AUD is more linked to Dow
    It’s going to take the 10 year Aussie bond to drop to 2.20/30% next year as market factors in Aussie recession and AUD if it makes it to 75/76 c and then comes off to 65/68c end o next year for ASX to increase purely on yield and AUDUSD re valuation
    Otherwise doesn’t seem to go up much or down a huge amount
    Maybe a new range 5580/5950 for time being????

    • You are the only person on the planet highly bearish property and bullish banks. Anything’s possible, but Inwould think bank hybrids are still better than banks(they have been 25% betters the last year) but simple bubble and bust sees them all go well under. Never have any banks in history survived a bubble like ours and never before have banks been as exposed as ours.

      • I agree
        I’m doubting a little too but strange things seem to be going
        I think it’s too early to short banks
        One more leg up as interest rates head to zero and AUD falls into 50s
        Let’s see