Sunset Strip | Aussie market remained negative with global market trend

Sunset Strip | Aussie market remained negative with global market trend. We turned short term negative after the market sentiment started to break the up-trend on the weight of piling negative risk factors over the weekend. The optimism in the market drove it to ignore risks and maintain momentum. But at post GFC high levels the 300+ point US drop on Friday pulled the market back to reality and valuations. Investors have been sitting on the sidelines since May waiting for a correction. Unless we see some macro stimulus, we feel that there is more chance of a correction in the near future than not. We remain positive in the long term, but markets do not go up in straight lines. Spot gold has bounced back over $1290 and we see a risk trade coming with gold equities. Trading idea of the day: Xero Limited (XRO)...heading back to $30. (VIEW LINK)