Aussie market turned negative at the start of the new month with falling commodity prices and low volume bank holiday leading into expected risk from reporting season. As expected, the correlation of stocks performing well into the month end generally leads to profit taking early next month as we are stuck in a range trade due to low growth outlook. As we wrote about last week, we expect the market to trend down over the next few weeks as market builds confidence over the major financials to drive higher. RBA is expected to leave rates unchanged with US Fed move and China slowdown still being played out. The reporting season risk level is relatively high due to stretched multiples, low growth outlook, APRA capital requirement changes, falling commodities, China slow down and US interest rates cycle. Grexit seems to never go away, but markets are not worried about it for now. Chiquities watch today shows that Shanghai is down 2.4%, but this could be flat by the time it closes. (VIEW LINK)