Sunset Strip | Aussie market maintained the negative rage with over 4% drop in Iron Ore and a string of negative AGM commentary following RBA's low growth...
Sunset Strip | Aussie market maintained the negative rage with over 4% drop in Iron Ore and a string of negative AGM commentary following RBA's low growth outlook yesterday. We see this negative trend continuing well into next week....hence we suggested to take profit on Nov 6th....keep your belt tight.... this could get bumpy in the short term as 3mth moving average moves below 12mth moving average on technical basis with rising volatility. In the meantime ....no rate rises in Australia till 2017, may even get a cut next year...unemployment going close to 7% in 2015 and remain above 6% well into 2016...consumer spending this Christmas will be a retail killer. NCM is the easy option given the low cost long life assets that have been hit with everything in recent years. If Iron Ore goes down close to US$60....stocks like FMG, BCI, AGO and mining service stocks linked to them will be put on the bbq. Trading idea of the day: CarSales.com (CRZ). Wednesday's Star Performer: Lend Lease (LLC). Chart of the day: Prime Media (PRT). (VIEW LINK)
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