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After big losses across the board on Monday and Tuesday the market achieved three positive days in a row to finish up 0.5% for the week.

Market sectors were mixed with health care up 4.7% for the week while gold was down 4.7%. Consumer Discretionary, Financials and IT were all up about 1.5% on average while Energy, Resources and Materials fell by a similar amount.

Looking at the ASX 300 NCX, PNV and ILU all rose buy just on 10% while the biggest losers were PLL (-18.6%), DTL (-11.9%), SLR (-11.0%) and SSM (-10.0%)

My own trading saw the best result for some time with good moves up by everything except gold – which held my overall performance to 0.9% for the week. ILU (+10.0%), CUV (+7.1%) and CSL up (5.7%) were the stars while ENV (-9.4%), STO (-6.1%) and NST (-6.0%) dragged my portfolio back.

My Stocks to Watch last week generally performed well, moving up 1.5% on average. EOS rose 9.3% and LYC 4.2%. AIA fell 5.6% - perhaps on response to the worsening Covid outbreak popping the NZ/Australia travel bubble. However, the fall was only back to trend and providing price can hold above $6.70 the chance of a reversal of fortunes appears reasonable. I’ve added SLR, WTC and XRO this week. See my Stocks to Watch page for individual analysis.

Where to next week? The XAO has made a new all-time high which could spur further rises next week. The XJO broke marginally above a pattern where a break up also would suggest further rises. However, my enthusiasm is tempered somewhat by both indices showing lower than usual volume. While the jury is still out on next week’s direction my feeling is further moves up are likely, driven by strong profit reports from the US.


Robert Norman

Phone: 0428 346 951

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