The All Ordinaries index appeared to hold the breakout of the previous week with a relatively minor pullback during the week of 0.82% and a close above the new level of support. The tail at the level of support on Friday indicates there was demand at this level, however as we see today, this demand has all but disappeared, and the index looks set for a correction, which could take it back into the lows of the previous trading range.
Today we sold one stock in the Materials sector and allocated the released cash to a share in the Financial industry. This new position is the only exposure we currently have to the Financials sector; however, it is unsurprising given the recent strength of the sector that we are beginning to see opportunities appearing there. … Read more