Welcome to our Morning Review video report

Posted on | by Leon Hinde | Leave a Comment on Welcome to our Morning Review video report

We look at the likely point of price resistance, as the Dow Jones Index reverses from Friday’s session lows.

CBA & WFD were recently added to the ASX Top 20 model portfolio.

In addition,  OSH & STO have now been added to the ASX Top 50 model.

Add to your watch-list RMD, CIM, MPL, AGL & AMC.

Also, watch the IZZ.AXW (China Large-Cap) ETF to see if $59 support will hold.

The video runs for 4 minutes and if you’d like to discuss the ideas presented,  please call our office on 1300 614 002.

A Buy/Write Strategy For AMCOR

Posted on | by Todd | Leave a Comment on A Buy/Write Strategy For AMCOR

Shares of AMC continue to hold above $14.40 after yesterday’s sharp reversal off of the $13.70 low.

After announcing their H1 net profit of USD330 million, versus USD309 million last year, the packaging giant lifted its interim dividend by 8% to 21 cents.

We are holding AMC in our ASX Top 50 model portfolio and consider the stock a “buy/write” name over the medium -term.

As such, we would look to sell the $15.00 call into June, which would allow investors to collect the February dividend of 25.6 cents and enhance portfolio returns with the call premium.

Amcor

 

 

 

 

WTI Drops 3% On Higher US Production

Posted on | by Todd | Leave a Comment on WTI Drops 3% On Higher US Production

West Texas Intermediate (WTI) crude oil fell to a seven-week low of $58.07 per barrel, before paring losses to close Friday’s NY session down 3.2%  at $59.20.

This was the sixth consecutive day that Crude oil has traded lower. For the week, crude oil was down nearly 10%.

WTI broke below $59 a barrel after Baker Hughes reported the U.S. oil rig count rose by 26 rigs to 791, the highest total since April 2015.

The week’s losses accelerated on Wednesday after AEI data showed weekly U.S. production jumping to a record 10.25 million barrels a day. Meanwhile, the nation’s stockpiles of crude rose for a second straight week.

Our ALGO engine triggered a buy signal in both OSH and WPL on Friday’s close.

We expect the sharp down move in WTI to push both OSH and WPL back in the buy zone near last week’s lows of $7.20 and $31.05, respectively.

Oil Search

Woodside Petroleum

 

Welcome to our Morning Review video report.

Posted on | by Leon Hinde | Leave a Comment on Welcome to our Morning Review video report.

Welcome to our Morning Review video report.

We look at the reversal in Dow Jones overnight and the BBUS, BBOZ & Yank ETF’s which benefit from further US equity market weakness.

CBA & WFD were recently added to the ASX 20 & 50 model portfolio.

RMD, CIM and MPL should be added to your watchlist.  .

The video runs for 10 minutes and if you’d like to discuss the ideas presented,  please call our office on 1300 614 002.

Higher US Rates Pushes AUD To A Two-Month Low

Posted on | by Todd | Leave a Comment on Higher US Rates Pushes AUD To A Two-Month Low

The AUD/USD made an intra-day high of .8135 on January 26th.

At the time, we noticed that this had a potential for a “double top” formation relative to the .8125 high posted on September 28th.

The Aussie traded down to .7760 overnight and the internal momentum indicators are now pointing lower.

The fundamental reasoning for the recent fall has been the divergence in interest rates between the USA and Australia.

Since January 1st, the US 10yrs have risen from 2.4% to 2.85%. Over the same period, the AUD 10yrs have traded from 2.65% to 2.85%.

We expect this divergence to continue this year as the FED continues to tighten rates and the RBA remains neutral. At this point, the US 10yrs have a high target of 3.25%.

This estimate is based on the FOMC raising rates 3 times during 2018, which would correspond to the AUD/USD trading back to .7150.

Investors looking to profit from a lower AUD/USD can buy the BetaShare ETF with the symbol: YANK.

YANK is an inverse ETF, which means the price of YANK increases as the AUD/USD trades lower. It also has a weighting of 2.5%, which means the unit price will fluctuate  by 2.5% for every 1% change in the AUD/USD exchange rate.

With a current price of $13.20, we calculate that the price of YANK will be near $16.50 as the AUD/USD returns to the January 2017 low of .7160.

BetaShare ETF: YANK