Long RMD.ASX
We’ve been long RMD since the buy signal back in March at $7.30. The rally is continuing with strong bullish momentum and we suggest clients lift the trailing stop-loss and allow price to trade into the $9.00+ range before taking profit.
Australian market finished the week….
The S&P/ASX 200 Index (XJO.ASX) finished the week down 0.3%. Materials sector showed buying interest with a rally of over 2.8% for the week, whilst financials lagged with the Financials ex-Property down 2.4%.
Long CTX
We are buying CTX.ASX at market today. Look for a rally into the $34 range and either take profit or sell at the money calls to enhance the income from the estimated $0.50 September dividend.
Consider a stop loss on a trade below $29.00
Australian market finished the week…
S&P200 XJO.ASX finished the week up 2.6%.
The best performer was the Materials sector + 5.4%. Fortescue Metals Group FMG.ASX outperformed rising 11.0%. Information Technology lagged, weighed down Computershare Ltd selling off over 6%.
As a reminder CPU was one of our short trade recommendations, to read more on CPU, click the “tags” section in the right column.
Long SGR
I recommend accumulating SGR at $5.40 and holding for a rally back towards the $6.20 range.
Long AMC (update)
Reminder that I recommended buying AMC in the $14.25 to $15.00 range. It’s now trading $14.30 and you should begin accumulating today.
Short CPU (time to take profit)
On 27th of May 2016 I recommended going short CPU, the stock has now sold off over 15% in 4 weeks. It’s time to take profit.
Buy back short exposure at or near $9.00
Short XTL (update)
I suggested shorting the XTL on 2nd June 2016 and now I believe that Central Banks will have no choice but to embark on a more aggressive stance. BoJ, BoE and ECB will be looking to reduce volatility, inject liquidity, depreciate ¥ and avoid excessive US$ appreciation. The Fed will work hard to reduce the degree of monetary policy divergence.
This means we are getting ready to close out the XTL short and bank the profit.
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Short AZJ.ASX
Time to look at AZJ on the short side. $4.80 range is the target I’ve been waiting for, the stock has pushed higher against a backdrop of selling in the broader equity market but with no revenue growth, 100% payout ratio on the dividend, I think AZJ is susceptible to a pullback into the July/Aug earnings result. Target pullback to $4.40 – $4.50
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