Aussie market jumped up on US relief rally but lacked any conviction to follow through. The market was on a three day consecutive negative run delivering a fall of 2.5% before today’s bounce. We continue to get solid data from US economy and tonight’s employment data should hold that trend. US and Aussie markets are over stretched on valuation with very weak support to go any higher. Any bad news and the house of cards will fall. RBA meeting next week will be just jawboning as the justification for a rate cut is mainly linked to the next inflation update in July. US Fed meeting mid June, ABS employment update mid June, Brexit vote late June and Federal Election in early July are the main catalysts for now. The markets are likely to remain weak in June….but get ready to jump on preferred stocks when they hit your target…get your shopping list ready!!! (VIEW LINK)
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