ASX bath of blood drains into bank rip

The Australian dollar is pulling back a little from the overnight surge:

Bonds are firm:

XJO is holding:

Underneath the bonnet, however, there is considerable action. Big Iron is copping it:

Big Gas marches on:

Big Gold is bashed:

But Big Banks have launched as Australia’s virus victory percolates:

The financials index has very a bullish breakout chart:

And some relative value argument at 14-15x forward. Hardly cheap but relative value:

Not so Big Chunt:

ASX bath of blood is draining into a bank rip.

David Llewellyn-Smith
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  1. DingwallMEMBER

    Banks up over 10% now.. on what ? Rotation of Super funds from dirt/gold to banks

    And then you see notes like this via SMH

    Big banks finally join ASX party
    By Lucy Battersby and Alex Druce
    Bank share prices are racing upwards in early afternoon trading, following the release of a note from UBS analyst Jonathan Mott, saying bank shares are likely to reverse some of their underperformance after the sector has lagged the market during the pandemic crisis and the recent bounce-back (see 11.10am post).

    Australia and New Zealand Bank is up 9.4 per cent, Westpac is up 9.2 per cent, National Australia Bank is up 9 per cent, and Commonwealth Bank is up 5.2 per cent.

    These four banks alone have added over 70 points to the S&P/ASX 200, which is now up 18 points, or 0.3 per cent.

    BetaShares chief economist David Bassanese says investors are likely sniffing out parts of the market that have so far missed out on the bounce.

    Could some note from UBS really drive a feeding frenzy like this? If so, you would think they would be bailing out this afternoon happy as Larry.