Australian Stocks: What Happened Today?

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ASX Top Gainers & Losers plus Market Snapshot – 19 February 2014

Aussie Market hits highest price in 2014 as it fast approaches fresh five year highs with the Nasdaq breaking into blue sky territory, with many leading indices not far behind hitting all time highs.

What are traders talking about today? 

• S&P/ASX200 gained 15.4 points or +0.29% on volume of $4.2 billion, closing at 5408.2.
• Gold had quite a volatile session on Tuesday night, breaking above $1330 but then falling $15 to close at $1321.50
• Ferrari, the car manufacturer, just posted record sales for January in both the US and UK markets.
• Some of the biggest hedge fund manager’s in the world are putting out commentary to suggest the US markets are beginning to get overbought and expensive.
• Brent Crude Oil has broken out of a short term resistance at $109.50 to close above the $110 market for the first time since December 2013.
• On an hourly basis the Aussie Dollar continues to hit lower highs and lower lows after it hit resistance at 0.9080 on Tuesday.

Economic news

• SQM Research released their rental vacancies for the month of January, which showed a 0.4% decline from the month before.
• The Westpac-Melbourne Institute Leading index has fallen from 1.09% to 0.46% month on month (December to January), which looks at the likely pace of economic growth going forward.
• Wage Price Index numbers for the December quarter have been released by the Australian Bureau of Statistics (ABS) highlighting a growth of 0.7%.

Australian sector watch

Looking over the charts

• In addition to being extremely overbought, the S&P/ASX200 is starting to show some rounding patter at the top with momentum slowing down. Having said that it is still very clear that the bulls are in control of the current market action.
• When analysed in conjunction with other world markets, you begin to see how likely it is for the markets to move into blue sky territory. The Nasdaq has already pushed up to the highest price since the bubble burst in the year 2000. The Dow Jones isn’t far off and the Aussie Market is approaching the highest price since 2008. We are currently in very exciting times.
• The resistance zone is still between 5400 – 5450 and with many blue chip stocks hitting record profits, it’s only a matter of time before the 5450 barrier is broken.
• If for some strange reason there are a number of traders short this rally, then a break above 5450 will see a significant amount of short covering.
   

ASX top 200 stock analysis

4% of stocks are showing oversold levels, 64% are showing overbought levels and 68% of stocks are currently above their long term moving average as of close of trading today. View the image below to better understand overbought and oversold levels.

S&P/ASX 200 Gainers and Losers

Top 5 gainers:

• SEK         SEEK +17.78%
• NST        NORTHERN STAR RESOURCES +8.26%
• NWH     NRW HOLDINGS +3.83%
• GEM      G8 EDUCATION +3.80%
• DCG       DECMIL GROUP +3.80%

Top 5 Losers:

• MGX      MOUNT GIBSON IRON -15.42%
• SXL         SOUTHERN CROSS MEDIA GROUP -7.76%
• RSG        RESOLUTE MINING -6.99%
• SMX       SMS MANAGEMENT & TECHNOLOGY -6.84%
• AGO      ATLAS IRON -5.68%