Aussie market started negative and then fell hard before bouncing back to deliver a solid negative day in line with the US sentiment over the weekend. The negative performance today puts the local market into third consecutive negative weeks. Over the past 12mths, we have not had four consecutive negative weeks and the last time we had three in a row was in December and the market bounced the following week. The trend suggests that we should see support next week from these value levels. As we have been saying for the past few weeks, all the macro, fundamental, technical and trend leading indicators were showing profit taking was coming in April driven by US market, commodities and school holidays. We see this pullback as another opportunity to add to market exposure or even clean out some of the dogs in your portfolio and buy some quality stars. Time to be patient and pick the time to buy-in or add more exposure…maintain medium to long term view > long Yield and Gold, short Iron Ore and Oil!!! (VIEW LINK)
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