An unusual winning streak in small resources

Livewire Equities

As at last Friday, the S&P/ASX Resources Index (XSR) had recorded 7 consecutive weekly gains providing a 7-week return of just over 17%. Since 1994, weekly winning streaks of this length are unusual, having been previously observed on only 9 independent occasions (down week followed by 7 up weeks).

The evidence suggests, that weekly upward streaks of this length and magnitude, have a statistically significant average return profile, in the subsequent 3-month to 1-year interval.

The only way is up!

Data compiled by Andrew McCauley, Quantitative and Statitical Analyst at Veritas Securities Limited, shines the light on this rare scenario. Of particular interest is the 100% 'Win Rate' recorded for both the 6-month and 12-month intervals with average returns of 14.21% and 26.3% respectively.

The full data set is outlined in the table below.


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Barolo Bill

Spec miners are white hot! The number of 1-3 month, 10 baggers is insane at the moment. Cobalt, Pilbara nuggets, lithium, nickel and even lowly copper back in the limelight. Een starting to spill over into small oil & gas players, a long-dead sector.

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