More Troubles For The CBA

Posted on | by Todd | Leave a Comment on More Troubles For The CBA

Shares of CBA have posted a new low for the year at $76.55  as APRA announced that they will be setting up an inquiry after a series of problems prompted concerns about the bank’s culture, leadership and accountability.

This is  not a good addition to CBA’s current AML allegations from AUSTRAC and a class action suit filed on the behalf of shareholders.

On balance, we don’t see any obvious catalyst to drive any of the domestic banking names higher and CBA now has the weakest technical structure.

The next key price support for CBA will be found near the October 2016 area near $75.00.

  Commonwealth Bank

 

 

 

 

Algo Update – TCL, SYD & AMC

Posted on | by Leon Hinde | Leave a Comment on Algo Update – TCL, SYD & AMC

Following recent Algo Engine buy signals, we’ve seen solid price performance in TCL, SYD & AMC.

At the time of the algo buy signal, we highlighted these stocks to members as preferred buying opportunities.

However, we now see the stocks as near full value. Yields have compressed relative to 12 month EPS growth and investors should look to take profit, or sell at the money covered call options.

AMC
SYD
TCL

 

 

 

 

ALGO Update: Sell Signal In QRE

Posted on | by Todd | Leave a Comment on ALGO Update: Sell Signal In QRE

Our ALGO engine triggered a sell signal in the BetaShares Resource ETF with the symbol QRE at $4.85.

QRE is comprised of 10 ASX stocks which include BHP, Bluescope Steel and Caltex. The weighting is such that BHP, RIO and WPL make up over 50% of the ETF pricing.

Frequent blog readers will remember that we had a generally bullish outlook on the resource sector back in mid-March, and advised clients to buy QRE in the $4.50 area and BHP in the $22.50/70 price range.

We now agree with the ALGO engine that the resource names look fully valued overall.

We suggest that investors who are holding BHP can either take profits in the $26.25/50 area, or write covered calls at $26.50 into November to enhance portfolio returns.

BetaShare ASX Resource ETF: QRE

 

BHP

Short Banks and Retailers

Posted on | by Leon Hinde | Leave a Comment on Short Banks and Retailers

We like the short side of the banks and retailers coming into what will likely be a volatile period for equity markets in September & October.

The regional banks, BOQ & BEN look expensive.

Following their profit announcement on the 31st August, HVN should be on your wishlist as a potential short, with a stop losses above recent highs.