Downward Bias For ASX 200

This story features FLETCHER BUILDING LIMITED, and other companies. For more info SHARE ANALYSIS: FBU

By Michael Gable 

A few company announcements yesterday have provided opportunities for the switched on investor. Yesterday’s announcement by Oil Search ((OSH)) may weigh on the share price short term but is a non-event from valuation perspective, and the sell-off on QBE Insurance ((QBE)) is just another buying opportunity for those with a medium term outlook. Fletcher Building ((FBU)) released a positive announcement and is doing all the right things, so it should trade higher. I can also see an opportunity in ALS ((ALQ)) (the former Campbell Brothers) down at these levels as the stock may run up into the dividend in about 4 weeks time.

The overall market continues to have a downwards bias and will most likely defy those who are banking on the "Christmas rally" – which statistically is not as common as you would think.

ASX 200

We got that little spike last week due to the US election result coming through, but the US markets (which I have been warning about for a while now) have continued to slide. Our market is holding up better in comparison, but we also underperformed the US on the way up. I still feel that there is now more downwards bias in our market. The next two levels of support in the ASX 200 remain at 4420 and 4350. A dip under 4000 still remains the worst case scenario.

Content included in this article is not by association necessarily the view of FNArena (see our disclaimer).
 
Visit Michael Gable's website at  www.michaelgable.com.au/.

After leaving Macquarie Bank's Securities Group in 2008 after many years of service, Michael has gained a highly regarded reputation in the financial services industry. As a Private Client Adviser with Novus Capital, Michael has become a popular live commentator and analyst for Sky News Business Channel’s “Your Money, Your Call” program. He is also the author of the weekly stock market report “The Dynamic Investor”.

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management.

Michael deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Michael Gable is an Authorised Representative (Rep. No. 376892) of Novus Capital Limited AFSL 238168 ACN 006 711 995. Michael Gable and Novus Capital Limited, their associates and respective Directors and staff each declare that they, from time to time, may hold interests in securities and/or earn brokerage, fees, interest, or other benefits from products and services mentioned in this website. This website may contain unsolicited general information, without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you must consider the appropriateness of the information in this website or the Product Disclosure Statement (PDS) or Financial Services Guide (FSG), having regard to your objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance. Michael Gable and Novus Capital Limited believes that any information or advice (including any securities recommendation) contained in this website is accurate when issued but does not warrant its accuracy or reliability. Michael Gable and Novus Capital Limited are not obliged to update you if the information or its advice changes. Michael Gable and Novus Capital Limited and each of their respective officers, agents and employees exclude to the full extent permitted by law, all liability of any kind, in negligence, contract, under fiduciary duties or otherwise, for any loss or damage, whether direct, indirect, consequential or otherwise, whether foreseeable or not, to the extent arising from or in connection with this website.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

Click to view our Glossary of Financial Terms