The ETF’s covered in this post are all ASX listed products, provided by iShares.
IAA covers the top 50 stocks in Asia. Our Algo Engine triggered a buy signal in November 2016 when the ETF was trading at $62, it is now trading $76
The chart below is the IHK – Hong Kong ETF
The Chart below is the IZZ – China Large Cap ETF
The IVV ETF is based on the S&P500 index in the US, the chart shows the market remains in a bullish higher low structure.
Investors continue to chase equity valuations higher as US GDP deteriorates.
The chart below is the BetaShares NASDAQ 100 ETF. Our Algo Engine triggered a buy signal in early 2016 when the ETF was trading at $10, it is now trading $13.50.
Aristocrat Leisure released 1H17 results with revenue and net profit beating analysts’ bullish expectations. Full year guidance was reiterated with profit growth likely to be + 20-30%.
North America and Digital underpin a strong earnings outlook and the company’s strong balance sheet, will likely see excess capital returned to shareholders and/or new acquisitions announced.
The company declared a dividend of $0.14 for the half-year, which was up from $0.10 in 1H16.
FY18 revenue is likely to increase 10%+ to $2.7b, EBIT $900m on EPS of $0.90, DPS of $0.36, placing the stock on a forward yield of 1.8%.
Our Algo Engine last generated a buy signal in October 2016 at $15.00
The Dow Jones continues to trade in a sideways consolidation pattern, which began in early March. With the index closing at 21080, the price is now pushing against resistance at the top end of the consolidation channel.
The XJO continues to find selling pressure below the 5795 high reached earlier in the week.
As an update to our recent Chart Watch on the XJO, we highlight again the lower high structure that has now formed. We were expecting a bounce into the 5790 – 5850 level before further selling pressure. Yesterday the price action hit resistance at 5796 and today’s open looks weak against a positive lead from the US.
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The market remains optimistic about future earnings growth for Boral. The recent Headwater acquisition in the US provides Boral with added exposure to the US housing market. Domestically, Boral is well placed to benefit from the an increase in large scale infrastructure projects.
We feel some caution is warranted though, given the weaker trends emerging is both US and domestic housing construction data. The stock trades on 19x forward earnings and less than a 4% yield.
FY18 revenue is likely to be $5.8b, EBITDA $1.15b, Net Profit $490m and DPS of $0.29.
The XJO chart is showing the first lower low structure we’ve seen for some time.
The broader trend, which has been in place since February 2016 is likely in the early stages of breaking lower. Any bounce higher from last week’s selling, is likely to be limited and investors should look to protect their portfolios.
New selling will likely occur within the range of 5790 and 5850, creating a lower high formation as a strong sell side signal.
With the recent sell-off in commodity names, the Algo Engine has triggered buy signals in a number of big and small cap companies.
Our preferred resource allocation remains BHP, over other alternatives. However, it’s worth taking note of the recent buy signals in RIO, FMG, IPL and in OOO, the BetaShares Oil ETF.
We look to take profit in BHP at $25, after buying at or near $22.50.
Our Algo Engine has triggered a buy signal on the Veneck Vectors Australian Bank ETF. ASX code: MVB
MVB made a low on Friday at $27.56 and we may see buying interest pickup in the early part of next week.
Investors who take this trade should work a stop loss order below $27.50.
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