Sunset Strip > Trading Day Wrap From Blue Ocean 20170622

Local market had a relief rally after recent bashing. Sentiment remains volatile…time to stay on the sidelines and wait for some of the optimism to unravel and pick up the bargains for the July recovery. The best performing sectors were Gold, Banks and IT while the worst performers were Property Trusts, Telecom Services and Utilities. Iron Ore has been holding of recent days while Oil remains on the slide. Currency has started to slide and looks to be heading back to 72 cents…i.e. fell twice to 72 cents last year when Oil fell down to low $40’s. US Shale rig counts are ripping higher…but when Oil gets near US$40, that rig count trend will break. Falling currency risk will weigh on bank as global investors reduce exposure.            Local market is in the last stage of tax loss selling and confessions ahead of August reporting cycle blackout.

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