Aussie market started with a rocket on the back of health care sector in the first hour and then went sideways for the rest of the day. Even if it’s not window dressing for the end of quarter and end of financial year, the bounce in the market form the lows this week have been way too strong. The selling was overdone on Brexit worries and the buying is also overdone in the short term. We are likely to see some profit taking and sideways trading in the first week of July while markets assess central bank reaction from all parts of the world….including RBA. We suggested staggering buying from Tuesday and it still remains favourable to buy small caps as the bounce in the market was mainly in the large caps. We remain very positive on the outlook for gold due to continued raised level of risk in the market as seen from historically low bond yields. (VIEW LINK)
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