Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market popped up on short covering bonanza and Iron Ore / Oil maintaining their recovery. The market still remains in a technical down trend with better than expected domestic data and global currency wars putting doubt on May rate cut. The Turnover was just above $7.7b with option expiry kicking in more confusion to the market movement. There is a clear correlation between highly shorted stocks and good performance today. This trend was not just linked to commodity related stocks. It was a good day to take profit on some perennial underperformers as the market let the dogs out. The big positive performances were led by LNG (up 16%), ACR (up 12%), SEA (up 12%), PRU (up 12%), RSG (up 11%) and SXY (up 11%). The big negative moves were led by RMD (down 10%), ORE (down 7%), BRU (down 6%), SEH (down 6%) and IFN (down 5%). We have been suggesting to clients to take profit since start of March on every occasion when the index gets close to 6000. (VIEW LINK)