We finally have the retracement we had to have. Nothing too serious so far – but let’s see where it ends.
XAO was down, -1.93%. On a 20-Day (Monthly) basis, the XAO is up +0.43%. The only day the volume was below average was Monday, a day when volumes are often below average. The only up-day on the market was Thursday – Thursday is often “counter-trend day”.
Nine out of ten S&P Industry Sectors were up. The only “up” sector was Health, +0.42%. The biggest loser was Information Technology, -5.2%, followed by Financials, -3.3%.
Clearly the market is disconcerted by the current brouhaha from both sides of politics about the banks. Queen Joolia is on the world stage playing to the audience back home, shaking her Boadicea sword at the Usurers. By-hook-or-by-crook-I’ll-blow-your-house-down Hockey is doing a great job of blustering at the bricks and mortar in Martin Place.
When the noise and tumult settles, will the big banks continue on their profitable ways regardless of the sabre rattling and the huffing-and-puffing? If they don’t, then it will be another blow to the incomes of self-funded retirees many of whom now depend on the big dividends which flow from the big bank sector for an income. After having incomes decimated by the plunge in the REITs during the GFC, the outlook for retirees, who are generally investment illiterates, is bleak.
Did someone mutter the words, “Unintended Outcomes”?
Cheers
Red
Hi Redbacka!
ReplyDeleteI eagerly follow your weekly report on Hot Copper. I confess to reading the intro then straight to the summary as I am not that technical with charts (but learning), unless we keep dipping (then I read the lot!)
I'm a self-funded retiree with a SMSF. I have a self imposed 20% limit for gambling with shares, the remainder being cash.
I believe the banks need to be slapped around a bit as this year they have gradually reduced the interest paid on term deposit as well as fiddling with the duration of the term. Who would now want to commit to a 5 year term to get 6.75%? They tend to reduce the rates before an RBA decision then leave those rates after they get granted another .25%
Robbers!
Do you think the Telecoms sector will ever pick up. Yes I bought Telstra the minute the independents put Julia into power. I should have sold at a profit within 2hrs as it's been downhill since thanks to the future fund flogging them off.
The beauty of the SMSF means I get a credit on the franking so IF Telstra still pay the 28c, it equates to 40c dividend for me.
But, I will probably flog them off before the record date (as I have done often in the past)
Thanks to the Banks, the Govt, and the overly cautious Aussie sharemarket it's hard for a self-funded retiree to make a $ or even maintain the $value of his super fund.
Kicking myself for not buying some property when setting up my SWMSF 2 years ago as it does not pay any cap gains tax. Easy in hindsight, but now priced out of the market.
Gold bullion was another one I was going to get at the time but settled for shares is the likes of SLR which went nowhere for a long time, then I sold off when they hit $1, not knowing they were going to hit $2.69
Buy too late, sell too soon - always seems to be the case with my trading, with Commsec making more than I do.
It’s been fun and I learn something every day from the experts on HC and the likes of Oscar Omni Trading Academy
Really miss my daily dose of pjsimon with his endless list of links to items of interest. I have made some very wise decisions thanks to reading them
Redbacka, thanks for your great report and posts on HC and this blog site!!
Sorry for rambling on
rabiez