NASDAQ – Leading Indicator

The NASDAQ remains our leading indicator of global equity markets.

We draw your attention to the shift to “algo engine” sell conditions and the potential for selling resistance to build near 9500.

In the last few trading sessions, we’ve seen a rotation out of tech names into industrials and financials.  Overnight, the NASDAQ rallied back from the session lows and again has closed above the short-term momentum indicator. It’s likely that we’ll see another retest of 9500 points in the index. 

 

Alumina

Alumina is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

We see price support building at $1.38 and suggest traders watch the short-term momentum indicators and stay “long” AWC whilst the indicators trend higher.

Stop loss on a break below $1.38.

CIMIC Group

Cimic Group

CIMIC provided no update on 2020 guidance, but reported its 1Q20 result with revenue of A$3.3bn, down 3% on the same time last year. NPAT was down 8% to $166mn.

We forecast 2020 full year NPAT to be in the range of A$700 – A$750mn.

Buy above $22.50 support.

Since making the above post, CIMIC has now rallied to $25.50 and we see further upside in the stock.

Telstra

Telstra Corporation is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

We see buying support at $3.00 and highlight the short-term indicators have now turned positive. 

TLS goes ex-div $0.05 28th August. 

Call our office on 1300 614 002 to discuss the derivative strategy to enhance the income return. 

Boral

Boral is in our focus following the price trading below our target of $2.50 and the short-term indicators now turning back up.

See highlighted support levels in the chart, a break below these levels will trigger a stop loss.

Buy BLD above $2.50.

The above post is from the 20th of May. We continue to see upside momentum in BLD.