Aussie market delivered another positive day despite global investors selling on currency and market strength. The low turnover day like today was caught between optimistic local investor and pessimistic global investor. The last 3 years of daily returns will tell you that there is less than 3% probability of getting more than 5 consecutive positive days as we have seen today. The local retail investors were bargain hunting with institution investors away during school holidays while global investors were selling on the expectations that both market and currency strength won’t last. The resilience of our markets since the US Fed move gives us confidence that the Christmas Rally is on the third leg up. We may see some profit taking tomorrow and/or on the shorter trading Christmas day, but the trend remains positive. The market will continue to move on yield, currency, cost cutting and M&A. Notable moves today were… (VIEW LINK)
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