Proactive bulls are not only taking advantage of the current 9 week rally but looking to get set for long positions on any pullback as fear of missing out on a significant rally continue to hit home. The S&P/ASX 200 today hit a fresh 20 month high, only to fall back some 40 points and head higher towards the close to finish the day up 1.60 points or 0.03% at 4779.1 on volume on $3.6 billion.
Martin Luther King Jr public holiday affected volumes and the Bank of Japan announced a new tranche of an open ended asset purchase program (further stimulus) and doubled their inflation target. Gold and Silver have maintained their recent positive momentum over recent days as well.
Despite a fairly lack lustre session, only 2 sectors were in the red, being the Technology and Health Care sectors, down 1.34% and 0.65% respectively. On the positive we had the Industrials 0.57% and Utilities sectors 0.41% showing modest gains.
Breaking above a round number was definitely the highlight of the day as our market hit fresh 20 month highs but not being able to hold and close above the 4800 level would be seen as less positive. Given the strength of the uptrend, such a minor pull back would not be considered negative and momentum continues to favour the bulls.
S&P/ASX 200 Gainers and Losers
FKP Property (FKP:ASX) clearly has one thing on investors’ minds in January and that is to continue to push forward like a freight train, up another 6.19% and topping the tables again and over the last 3 weeks it is up a resounding 51.7%. Boart Longyear (BLY:ASX) continues to have a patchy start to the year but today those patches are very green, up an impressive 5.21% and looking to break into near recent highs.
Transfield Services (TSE:ASX) came under fire today, falling 6.02% and breaking out of its recent uptrend and below support to close at $1.80. Perseus Mining (PRU:ASX) and Mirabela Nickel (MBN:ASX) also struggled to stay out of the red, falling 5.37% and 4.55% respectively with Mirabela Nickel (MBN:ASX) reporting their annual production results in line with its guidance.
Your daily ASX market update comes from Ashley Jessen, Director of Capital CFDs
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