Aussie market delivered 6th straight positive day on better commodity prices and stronger currency. The low turnover day showed that retail investors were in charge and global investors were on the sidelines. The last 3 years of daily returns show that there is just over 2% probability of getting more than 6 consecutive positive days. The local retail investors were bargain hunting with institution investors away during school holidays while global investors were inactive as currency was holding up well. The bank dividends from ANZ, NAB and WBC have now dropped into the bank accounts and history shows that these dividends tend to roll back in to the equity markets and push them higher. As we have been saying for the past few weeks, despite recent profit taking in the first half of December, Christmas rally was expected to start its third leg with US Fed move… and we have had close to 5% move up in 6 consecutive positive days!!! The market will continue to move on yield, currency, cost cutting and M&A. Notable moves today were… (VIEW LINK)
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