Aussie market ripped out 7th straight positive day for Christmas on better commodity prices and stronger currency. The last 3 years of daily returns show that there is just 1% probability of getting more than 7 consecutive positive days and the last one was in February when the market ran up to the highs. As we have been saying for the past few weeks, despite the 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 6% move up in 7 consecutive positive days!!! We remain positive on the equity markets due to the solid corporate balance sheets and cost out potential to maintain a substantial yield premium to bonds. We still see real risk of slowdown in 2016 as the new leadership falls into the shallow election politics. The market will continue to move on yield, currency, cost cutting and M&A. Notable moves today were… (VIEW LINK)
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