Sunset Strip | Aussie market moved up despite falling commodity prices and negative global sentiment

Mathan Somasundaram

Deep Data Analytics

Sunset Strip | Aussie market moved up despite falling commodity prices and negative global sentiment. Turnover was just below $8.5billion. US Fed basically moved to deflate USD and give more breathing space for their economy. In basic terms they are playing their part in currency war (i.e. artificially deflating currency). There seems to be rampant short covering in the market or investors are buying up beaten up dogs with turnover hitting mid $7b yesterday and mid $8b today. As a broker we are more than happy see those turnover days, but alas they are unlikely to be sustained as they are mainly driven by short covering. Keep an eye on the Volatility Index (page 15): It has fallen below 200 day MA and sending big warnings signals. High turnover, short covering, stretched multiples, falling volatility, bond yield recovering from historical lows...risk is rising. As a very wise old man once told me life is all about cycles, you evolve with the cycle or the cycle runs over you. (VIEW LINK)


Mathan Somasundaram
Founder & CEO
Deep Data Analytics

Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...

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