ASX 200 Building For A Rally?

This story features MINERAL RESOURCES LIMITED. For more info SHARE ANALYSIS: MIN

By Michael Gable 

The iron ore stocks that I covered last week continue to trade higher. I also mentioned in the past that cyclical stocks will possibly outperform in 2013. Finally, a couple of months ago I first started making it clear that the fashionable rush to defensive and high yielding stocks could cause a bubble. I’m not saying that the bubble is bursting, but it is interesting to see a slight underperformance of these stocks start to take place. In return, we are seeing a movement into resources (particularly iron ore) and cyclical stocks. Whilst it is too early to call any sort of grand rotation, it should make investors, if they so wish, feel a bit more comfortable in looking at something outside of the defensive/high yield sector.

A stock I particularly like the look of is Mineral Resources ((MIN)). It pays a good yield, and assuming we are seeing some interest in iron ore again, it should provide some good growth over the medium term at least.

ASX 200

The market has finally broken to a new high. As discussed last week, it needs to hold that level before we can get comfortable with it heading higher. It has held it for a few days now, however we can clearly see plenty of intraday price rejection of these higher levels. The market is due for a higher start today, but we really do need to see it finish strongly. Another weak finish, followed by a very negative day will be setting us up for a retest of 4350. Too early to call at this stage, but we should know in the next couple of days what lies in the store for the XJO.
 

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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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