Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market flip-flopped aimlessly before closing in the slight negative territory. China seems to be stabilising, but the question remains over US corporate season. The US markets are showing signs of potential “Death Cross” rollover in the US reporting season…where 12 monthly MA and 24 monthly MA rolls over 36 monthly MA. Time to wait for the data and then react!!! Gold continues to be the best performing sector year to date while new economy sectors like Telco, IT and Health Care remains the places to be. Since we wrote about the US market “Death Cross” signal yesterday, we have had a number of houses come out with very bearish view on the market. We see risk of correction in the US, but not another crisis. If we do see another credit crunch event, we expect central banks to deliver more QE and support the process. Central banks have created the low growth and low inflation environment for the inefficient corporate sector and now they are stuck looking after it. Notable moves today were… (VIEW LINK)