Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market pulled out a solid positive day on better commodity prices while US and key Euro markets were closed overnight. The market has had a fourth positive day in a row after hitting our yield weighted fair value level last week. Key indicators why we remain positive (1) volatility index remains on down trend (2) bond yields are beginning to lose steam from the recent bounce (3) currency has pulled back from recent high (4) banks selling beginning to subside after NAB issuance selling muddied the waters (5) market bouncing from our yield weighted market fair value. The index has moved above the mid May high and will flag positive on technical indicators and push pessimist to feel FOMO (i.e. Fear Of Missing Out). US and major EU markets will open tonight and play catch up. Greece still in play and will need to get solved soon. Chinese equities continue to move too fast and flagging potential asset bubble risk like the property sector. (VIEW LINK)