ASX200 for 2nd July 2014
It’s frustrating to see S&P500 to make new heights and our market to straggle. The are are few good reasons for this happening:
1. Australia doesn’t have QE (quantitative easing), so it doesn’t inflate asset prices.
2. AUD is too high so impact exporters and stop foreign investors to put money in our market.
3. Our companies are less attractive in terms of future profits.
Coming back to our analysis for today our market revisited yesterday the low of the range it has been in for 12 weeks now. If it brake 5372 with conviction it will be a change of trend. For today though probably not with US reaching a new all time high.
Therefore I see a range of 5375 to 5414-5420 which would be a selling area.
I would buy on open expecting at least a 10 point rise in ASX index. If this happens then a second long position could be opened. Keep an eye on the price action and close two position when market loses it steam.
Let’s wait and see.
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