ASX 200 Vulnerable

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By Michael Gable 

We had Ben Bernanke’s testimony last week where he was basically telling the markets to not get ahead of themselves when it comes to the topic of tapering QE. It will be data dependent and we don’t have enough data to go off just yet. The weekend also saw the Chinese government removing the floor on lending rates. It is a positive sign, but more symbolic than anything as almost 90 per cent of loans are made at or above the benchmark rate. Despite these positive developments out of the US and China, our market has failed to do much here on the upside. However, a few opportunities are still emerging in some stocks. This week I am looking at Oil Search ((OSH)), Coca-Cola Amatil ((CCL)) and Rio Tinto ((RIO)).

ASX 200

Last week I suggested that we may now be reaching a point where the XJO could congest here for the next week or two down towards 4850. It has definitely failed to go much higher, congesting around 5000, but so far it has also failed to head to my 4850 target. That is not to say that it won’t however. The lack of upside momentum suggests to me that we are still indeed exhausting the upside move from early July and its probably just a matter of another week or two before dropping at least 150 points. There is also triple divergence on the weekly chart for the Dow Jones so I would expect the US to come off soon and lead us lower to the point where we should have many more buying opportunities to choose from.
 

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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.

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