Technicals | Oct 01 2018
By Craig Parker, asset manager, Moat Capital
I’ll keep things brief this week as there isn’t much more to report on our market from a technical perspective that I haven’t said the past couple of weeks. The big news during the week was the release of the interim royal commission report. As with all things market related perception is king (especially in the short term) and the perception is that the final report won’t be as bad as investors thought hence, the significant bullish range in the Financial sector on Friday. One can now expect our overall market to move higher on the back of positive sentiment driven largely by relief in the Financial sector and hopefully up towards the 6500 level I have mentioned over the past weeks.
As with all thing’s perception will only hold up until the tide of reality washes in to wake everyone up. The other big news last week was Oil breaking into an accelerated uptrend and the US 10-year Treasury Note forming resistance at 3.10. On the Oil side this isn’t great for our local market as higher oil prices aren’t great news for the economy with higher CPI figures and resultant reduction in consumer spending. Combine this with a lower dollar and you have even greater pain. This combined with Trump's tariffs can only lead to the 10 Year Treasury Note breaking up through the 3.10 barrier. When this happens caution should reign. Enjoy your week!
ASX200 daily
ASX200 financials ex-REITs daily
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Brent crude futures weekly
US ten-year yield daily
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