Sunset Strip > Trading Day Wrap From Blue Ocean 20170629

Local market had another cracker day on the back of better commodities and higher rates outlook. Commodities had another good night with Iron Ore leading the charge…Iron Ore up nearly 10% in two days. US dollar continues to fall after another Health Care fail supporting IMF call to downgrade US growth outlook by removing all fiscal stimulus hope while US Fed maintains the rate cycle. NASDAQ maintains the volatility and the down trend…bounced back over 1% overnight…continue to see risk in high growth as Resources recover…take some profit in the High PE local growth stocks. The best performing sectors were Miners, IT and Energy while the worst performers were Property Trusts, Utilities and Industrials. On the sector/stock front….(1) Short covering drove some big performances today…i.e. SXY, SHV and WSA (2) IPD maintains the recovery on SOZO sales (3) CAB moved higher on 49% sales of City Fleets Network (4) Property and infrastructure stocks were ex dividends today (5) SGH had a massive restructure and management has been flushed. US big buy backs are back in style…Nestle few days ago…overnight US financials BOA and JP Morgan joined the game…growth may be slowing but cheap cash driving buy back after business recovery.

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