Afternoon Report / Markets end a torrid week down but not out!!

By Market Matters 19 May 17

Markets end a torrid week down but not out!!

Market Matters Afternoon Report 19th May 2017

A big week for the ASX and global markets generally with traders digesting not one but two possible impeachments with both Donald Trump and Brazilian President Michel Temer fighting off calls to be ousted. On face value we might glass over that fact however history shows, that is indeed  a massive week in terms of global political events that could have had a major impact on financial markets.

For the week though, we saw a definite uptick in volatility however it was from a very low base, and the trends we’ve seen in recent times of over complacency are slowly unwinding. The ASX fell -109pts for the week but is now down around ~4% from the 1st May highs – a reasonable correction and enough to get our buy finger back on the trigger!

Yesterday the market was hit hard early and recovered from the lows. This morning we were down but once again there was buying appetite into weakness – simply look at the daily chart over the past two days below, clearly there is interest in picking up stocks into weakness and price action over the last two days is encouraging.

Today we had a tighter range of +/- 33 points, a high of 5740, a low of 5707 and a close of 5727,  down -10pts or -0.19%.

ASX 200 Intra-Day Chart

ASX 200 Daily Chart

RIO has been the standout stock of the week roaring ahead by +5.8% to close at $63.25 despite a lot of reasons to be on sell side….A stock we hold in the MM portfolio and one we bought into recent weakness. Stay long RIO

Rio Tinto (RIO) Daily Chart

Oz Minerals is another stock that has caused us some grief the over the past few weeks and I know we wrote about it yesterday, however is was a standout performer today adding +5.73% to close back up at $7.01. The Copper market has been depressed for a long time however signs now emerging of a big drop off in supply from 2019 onwards and that should be very supportive of the copper price and especially Oz given they are bringing on new production at the right time!

Oz Minerals (OZL) Daily Chart

Have a great Weekend and keep an eye out for the report on Sunday,


The Market Matters Team

 

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Market Matters may hold stocks mentioned in this report. Subscribers can view a full list of holdings on the website by clicking here. Positions are updated each Friday.

 

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All figures contained from sources believed to be accurate.  Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy.  Prices as at 19/05/2017.  4.50PM.

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