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Good morning Teodor, The Australian market had the pullback we were expecting last week. While it felt brutal at times, the market hasn’t done anything it shouldn’t have done.
The XJO remains bullish while above 8,950, while 8,900 remains the key level for the broader uptrend. Small caps are similar. The recent weakness still looks like a healthy retracement, with 3,350 the important level to hold.
Consumer Staples continues to look constructive above 12,500. Discretionary and Information Technology have experienced much larger pullbacks, so I’ll be watching for a bounce this week and whether buyers can turn that into something more meaningful.
My major focus this week, however, is coal. Newcastle coal futures are sitting at a key level around $156. A break above this would signal a move out of the accumulation phase and potentially the beginning of a new bullish trend. WHC, NHC and YAL are the Australian coal miners I’ll be watching closely.
Finally, keep an eye on crypto. Bitcoin has already made its move, but money is now beginning to rotate further down the risk curve into altcoins. Some are already showing bullish changes in structure, so it might be time to dust off those old crypto portfolios.
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