Reassessing bond proxies
The Yellen testimony reiterated the prospect of more rate rises but also that the neutral interest rate is lower than it might have been in the past. The upshot is that bonds have eased and there is support for yield plays ranging from real estate investment trusts to the infrastructure plays and to a lesser extent in the banks.
My long book is more focussed on the resource sector and that's not really participating in the rally so it's a flat day for me.
12.46 pm A further leg up for the market and FMG which had been under pressure is back around square for the day, presumably iron ore is firming in China.
On the theme of bond proxies, I bought a few Sydney airport this morning. There's the potential for a reversal after a steep but fairly standard decline. I'm looking at a quick bounce. Here's the SYD chart.
2.07 pm I'm bullish SGR at the moment and analysts rate it the best value growth stock in the market. I bought some impatiently at 511 on Monday and added a few more on Tuesday at 500. The stock has bounced back strongly to 508 and I may get the run up to around 530 that I was looking for about a week ago. There was a swing higher which pulled back to a potential higher low of 495 yesterday. A push through 514 would confirm that.
3.37 pm I'm reasonably happy with the day despite being skewed too much to resources. IGO is pushing back up and FMG has held. The only weak spot is WOR which is weaker despite a stronger sector. I'm holding for now.
Retailers were sold heavily in recent months and offer good bounce back opportunities. Stocks in the sector have been rallying for about a month but look as if they can accelerate. I've been in and out of HVN and JBH in recent days and have bought SUL today, Supercheap Auto.
The stock price has been making higher lows and today broke through short term resistance just below 850.
3.54 pm CCL is my remaining short position and nothing new has presented itself so I've sold a little FMG, SGR and SYD to reduce overall exposure.
My long book is more focussed on the resource sector and that's not really participating in the rally so it's a flat day for me.
12.46 pm A further leg up for the market and FMG which had been under pressure is back around square for the day, presumably iron ore is firming in China.
On the theme of bond proxies, I bought a few Sydney airport this morning. There's the potential for a reversal after a steep but fairly standard decline. I'm looking at a quick bounce. Here's the SYD chart.
2.07 pm I'm bullish SGR at the moment and analysts rate it the best value growth stock in the market. I bought some impatiently at 511 on Monday and added a few more on Tuesday at 500. The stock has bounced back strongly to 508 and I may get the run up to around 530 that I was looking for about a week ago. There was a swing higher which pulled back to a potential higher low of 495 yesterday. A push through 514 would confirm that.
3.37 pm I'm reasonably happy with the day despite being skewed too much to resources. IGO is pushing back up and FMG has held. The only weak spot is WOR which is weaker despite a stronger sector. I'm holding for now.
Retailers were sold heavily in recent months and offer good bounce back opportunities. Stocks in the sector have been rallying for about a month but look as if they can accelerate. I've been in and out of HVN and JBH in recent days and have bought SUL today, Supercheap Auto.
3.54 pm CCL is my remaining short position and nothing new has presented itself so I've sold a little FMG, SGR and SYD to reduce overall exposure.
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