Australian Shares

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Trading Day

The S&P/ASX 200 Index gained further today, climbing 1.4% or 58 points higher to 4288 points after a late surge in the afternoon session: The local bourse seems on its way to 4350 points, the resistance level it was unable to breach throughout all of October as it follows other “undollar” assets around the world

59

Trading Day

A tremendous 24 hours in risk markets around the world as they reacted to the combined liquidity of the world’s biggest central banks. The S&P/ASX 200 Index, jumped over 2% at the open this morning, finishing 2.6% or 108 points higher to 4228 points. Since this has busted through resistance at 4150, the support level

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Fund manager fat cats

A report by Morningstar sheds some interesting light on share funds that invest in large capitalised companies (for which read most super funds). It should be of great interest to anyone who is letting the professionals manage their savings. Unsurprisingly, given the lack of diversity in in the ASX, it shows that large cap fund maangers

81

Today, equities are right

We all know that the kind of jumps that we see regularly in the equity market these days are a symptom of its illness (at least, we all should). That is, in a healthy bull market, you don’t get 3%+ daily jumps almost ever. These kind of swings are typical of bear markets where the

25

Trading Day

The S&P/ASX 200 Index, after a volatile session, finished up 17 points today, its third positive day in a row, to 4119 points, arguably on the back of end of month window dressing as all the gains came in the last 20 mins of the day. The next target for the local bourse is resistance

11

Trading Day – Risk on again?

The S&P/ASX 200 Index jumped almost 2% today on rumor of another European bailout and following 6 down sessions in a row for “undollar” assets. The market closed 73 points or 1.8% higher to 4058 points, creating a “bullish engulfing candle” with very short term support at 3985 points and overhead resistance at 4150 points:

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Curb your enthusiasm

Morningstar has a conventional note on a conventional subject today: the rating of our banks. The broker looks at ANZ, concluding that it is undervalued.  It has done some scenario analysis and found that ANZ is more than $6 below Morningstar’s bear case of $26. It says the bear case is not the worst case,

19

Trading Day

The S&P/ASX 200 Index fell below 4000 points for the first time since October 5th, closing down 59 points or 1.5% to 3984 points today.. The index has now wiped out all the gains from the October rebound rally, with the short, medium and long term trends all pointing down, with the market approaching the

50

Wherefore art thou bulls?

The Australian share market opened 1% or 40 points down on the open and has now extended those losses into lunch, down over 1.5%, falling below the psychologically important level of 4000 points. It’s since rallied back some (the chart below will update during the session) The question is why? On a daily basis, without

12

Trading Day

The S&P/ASX 200 Index eventually closed down 6 points or 0.17% lower to 4044 points today, after a relatively volatile day that saw the market diverge from overnight market directions. The index is still below short term resistance at 4150, which previously had been support, with the short, medium and long term trends pointed down,

12

Trading Day

The S&P/ASX 200 Index closed down 82 points or 2% lower to 4051 points today, confirming yesterday’s falls through significant support at 4150, with the next target at 3850-3900 points. The market reacted to poor PMI numbers from China as the falls on overnight markets were modest. The S&P500 lost 0.4% whilst the UK FTSE

12

Trading Day

The S&P/ASX 200 Index closed down 30 points or 0.73% lower to 4133 points today after falling through the significant support level at 4150 points. The local bourse followed the overnight markets, if not in magnitude, then certainly in direction, as the S&P500 lost nearly 2% whilst the UK FTSE and German DAX each fell

7

Equities Spotlight: Australian Foundation Investment Company

In this week’s equity spotlight, we take a look at listed investment company Australian Foundation Investment Company (AFIC).  Later this week, we’ll also take a look AFIC’s recently-announced convertible note. The Business AFIC is a listed investment company that has been investing in Australian equities for over 80 years.  They are Australia’s largest listed investment

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Trading Day

The S&P/ASX 200 Index closed down 14 points or 0.34% lower to 4163 points today after bouncing off support at 4150 points, remaining in a tight trading range. In after hours trading, index futures are steady, with Euro and US markets pointing to lower opens between 0.5 and 1% down. Asian markets had a slightly

2

Chart of the Day: Gold is running out of time?

Today’s chart comes from the McClellan Market Report (via Pragmatic Capitalism) and implies that the secular bull market in gold has several more years of outperformance over the equity market. Using this Dow Jones to Gold ratio, the previous two secular bull markets where gold dominated were of 13 to 14 years duration and occurred

9

Trading Day

The S&P/ASX 200 Index closed down 81 points or nearly 2% lower to 4177 points today. In after hours trading, the index has slipped slightly, with Euro markets pointing to lower opens. Asian markets followed suit, with Japan’s Nikkei 225 down 1% to 8392 points, the Hang Seng losing 1.93% to 18455 and the Shanghai

9

Trading Day

The S&P/ASX 200 Index closed up 10 points or 0.25% higher to 4258 points today. In after hours trading, the index is down a 13 points, with Euro and US markets pointing to mixed opens. Asian markets had a mixed day, with Japan’s Nikkei 225 up slightly by 0.19% to 8479 points, the Hang Seng

34

Think positive

Amidst the deepening market gloom, Deutsche Bank is trying to inject some optimism. It is certainly an interesting inflection point. This kind of fear is different in that it is not fear of “normal” recession, it is fear that the system itself is fundmanetally broken. The GFC is rolling on, in other words. This fear

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Margin lending collapses

The Reserve Bank of Australia (RBA) released the September 2011 margin lending statistics (D10) today (but have not released household finance data (B21), which was scheduled at the same time). I’ve covered this data previously, as it is one of the sub-factors in my macro model for the Australian share market, as I explained then:

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Trading Day: slipping away…

The S&P/ASX 200 Index closed down 38 points or 0.9% lower to 4247 points today. In after hours trading, the index is down a few points, with Euro and US markets pointing to lower opens. Asian markets had a similar day, with Japan’s Nikkei 225 also down 0.9% to 8463 points, the Hang Seng losing

24

Why is BHP cheap?

BHP and Rio have been pretty disappointing performers considering there is a commodity boom, one of the few bright spots in the global mess. The stock is down by almost a fifth since mid year. At some point it has to be good buying. UBS has a buy on the stock, with a 12 month price

3

Chart of the Day: (P)IIGS share prices

Today’s chart comes from Dr Ed Yardeni’s blog, comparing the performance of the (P)IIGS (Portgual, Ireland, Italy, Greece, Spain) share market indexes (Portugal is not included) for the year so far: Greece is obviously the worst performer, down 48% with Italy not doing so bad, but still in bear market territory down over 20%. How

10

Trading Day

The S&P/ASX 200 Index closed down 19 points or 0.44% lower to 4285 points today, after reacting to the falls on EU and US risk markets last night. In after hours trading, the index is up a few points, with Euro and US markets pointing to mixed opens. Asian markets had a worse day, with

0

Trading Day

The S&P/ASX 200 Index closed up 8 points or 0.2% higher to 4304 points today, after jumping in the morning session on reaction to the solid gains on EU and US markets on Friday night. In after hours trading, the index is slipping, with Euro and US markets pointing to slightly higher opens. Asian markets

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Chart of the Day: Bear market recap

After reading my report on the Aussie share market, as you still not sure what a secular bear market is? Would you be surprised that the US share markets are 11 years in to a secular bear market? (whereas our own is only 4 years old) Today’s chart comes from Doug Short’s weekly update of

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Trading Day

The S&P/ASX 200 Index closed up 52 points or 1.2% higher to 4296 points today, after a sideways morning session followed by strong bids in the afternoon. In after hours trading, the index has fallen 10 points, with Euro and US markets are pointing to modestly higher opens. Asian markets had a mixed but generally

10

Trading Day

The S&P/ASX 200 Index closed down 102 points or 2.4% lower to 4244 points today, reacting to Italian bond dramas overnight. In after hours trading, the index has fallen another 10 points, with Euro and US markets are pointing to slightly lower opens. Asian markets had a bad day, with Japan’s Nikkei 225 down nearly

10

Is Myer a buy?

The fate of the big retailers is very much a pointer towards the health of the economy — and vice verca. A number of analysts are looking at Myer which is providing a read on both the economy and the underlying state of the stock market. The picture is for the most part pretty neutral,

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Chart of the Day: S&P500 and Goldman

Continuining again our focus on the US S&P500 stock index, today’s chart come from Goldman Sachs (via Zero Hedge): This chart says a 1000 words, but for those not sure what’s going on, its seems the ca. 1.5% cut to US GDP coming next year (courtesy of austerity), has been priced in the consensus forward

14

Trading Day

The S&P/ASX 200 Index closed up 52 points or 1.2% higher to 4346 points today, probably on the back of the news that we had seen the back of Italian Prime Minister Silvio Berlusconi. In after hours trading, the index has given back some of these gains and is down 15 points, with Euro and