ETF Watch – OOO (Oil ETF)
Following the recent Algo Engine buy signal in OOO.AXW, the ETF has now rallied over 10% from the $12.74 low formed on the 5th of May.
Chart Watch – XJO Index
The XJO is now consolidating within a trading range of 5790 as support and 5950 resistance.
Chart Watch – Dow Jones Index
The Dow Jones index is now trending back towards retesting the high set on March 1st at 21,169.
We remain cautious based on stretched market valuations and a reversal in the index back below 20,798 will be negative.
Property Stocks Under Pressure
After the strong rally in SGP, LLC, GPT and MGR, the price action looks to be rolling over, pointing lower, and we’ll watch these names closely. SGP appears to be showing the most selling pressure with the current price action taking out the 4.74 low formed on the 26th of April.
Our Algo Engine generated a buy signal on MVA.AXW (Vaneck Vectors Australian Property ETF) back in November at around $18.40, the ETF traded up to $21.30 and in the last week it’s starting to run into selling pressure.
Transurban – Price Retracement
The current sell-off in TCL will soon offer a reasonable entry level.
With US yields remaining under pressure, we continue to like yield sensitive names. Especially, if we can pick them up at a discount following investors taking profit from the recent strong rally.
The chart below shows the value range to enter TCL.
Algo Buy Signal – Inghams
ING is on the fringe of the stocks that we tend to focus on, however, given the recent Algo Buy signal at $3.05, we’ve now added this to our watch list.
Algo Short Signal – Flight Centre
Our Algo Engine is flagging the lower high structure in FLT.
Algo Buy Signal – GrainCorp
Our Algo Engine generated a buy signal on GrainCorp back in early March.
Following the strong share price move the stock now looks fully valued short term.
GNC delivered a solid 1H result and the full year forecast of around $160m should be achievable. Based on DPS of $0.32 the stock trades on 3.2% yield.
Chart Watch – GDX (Gold ETF)
GDX is creating a higher low formation and we see further upside. Stop loss should be placed at $28.00
ETF Watch – OOO (Betashares Oil)
We continue to track the Betashares oil ETF OOO.AXW
Oil prices have rallied from the recent low after this week’s largest inventory drop of 2017. EIA data has revealed U.S. crude stocks fell by 5.2M barrels. In addition, OPEC supply cuts have been agreed to by Iraq and Algeria joined Saudi Arabia.
Concerns regarding the abundant added supply of US shale oil will keep a lid on any meaningful rally, but we may see a bounce from the recent low. Investors should run stop losses under the trend low on both ETF and individual stock names.
Our best performing energy trade has been the long ORG position. However, due to the extended price rally since the Algo Engine buy signal, we’re now inclined to take profit in ORG and consider the OOO.AXW ETF as a replacement.
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