Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market jumped up on the open with solid global sentiment and pretty much remained there for the rest of the day. Commodity prices were also stable and helped drive the market higher. The market is again testing the valuation stretched 5400. The market is unlikely to break above 5400 for any considerable time without a big bounce in commodity prices and banks. We struggle to see both in the near future with US Fed rate cycle, strengthening USD and weakening China growth. The overnight US housing data gave market confidence but the weaker China data should take the steam off the momentum. As we have been warning clients since early May > Market has already peaked in the current cycle…nearly 2 weeks ago…we are at the early stages of the May sell off….no need to panic, prepare and take advantage of it!!! (VIEW LINK)