View our Blog
Felix Gold
Far East Gold
Far East Gold
Wellnex Limited
Propell Holdings Ltd
Prescient Theraputics
Site
TRIBE
MDF Global Limited Q&A
MDF Global Limited Q&A

Note from the MD: Markets and commodities press ahead while power retreats

The ASX 200 is now less than 2% away from it’s all time high, after stacking on around 7% January gains in a strong start to the year. Traders will be eagerly watching fourth quarter CPI data that gets released today at 11:30am (AEDT), with the RBA forecasting 6.5%. The VIX continues to hover around 19-20 while all US index’s ended the day only marginally different Monday.
The ASX 200 is now less than 2% away from it’s all time high, after stacking on around 7% January gains in a strong start to the year. Traders will be eagerly watching fourth quarter CPI data that gets released today at 11:30am (AEDT), with the RBA forecasting 6.5%. The VIX continues to hover around 19-20 while all US index’s ended the day only marginally different Monday. There was some unusual volatility in the US at market open on Tuesday, with at least 40 companies entering into trading halts after wild stock plunges that are being blamed on a computer glitch. Copper has had a surprisingly bullish start to the year, comfortably trading around US$4.25/lb for the past few days. This is now over 35% up from its 2022 interest rate fear induced low.  Lithium stocks had a rally yesterday on the back of UBS upgrading their price targets for the commodity, which in turn increased the valuations of all the companies they cover in the sector. It wasn’t long ago that a bearish Goldman Sachs report on lithium crushed the same stocks that ran yesterday, but as always, the market remains nimble. Wholesale power prices have rapidly sunk as renewable energy sources like wind and solar have had a good few months, with December sitting not far above $50/MWh – a far cry from the 2Q CY22 prices of over $250/MWh. The prices were also heavily impacted by the federal government’s decision to cap the gas price, which almost immediately ignited a steep drop in wholesale electricity prices. The XJO continues to push higher since the start of 2023, having bounced off the support at 6946 and continued through resistance at 7354. Implied volatility has fallen 19.18% from peak of 14.6% to 11.8%.  With an UV rank of 4, now would be a good time for traders to take advantage of the cheap options and buy protection if they think the market will reverse due to recession worries. Or alternatively, buy calls to capitalise on the continued momentum. As we begin to gather momentum in the new year, Reach Markets is kicking off 2023’s The Insider series with our first Meet the Manager session featuring Cyan Investment Management Director and Portfolio Manager, Graeme Carson. Graeme will be joining us on Friday, 3rd February at 12pm (AEDT) where he will share three favourite stocks that were chosen based on his ‘value investment’ criteria, along with unique market insights and Cyan’s investment strategy for 2023. Click here to book your spot or request the replay. Past performance is not a reliable indicator of future performance.
Any advice contained in this communication is general only and does not consider your objectives, financial situation or needs, and you should consider whether it is appropriate for you. This might mean that you need to seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG) including the Privacy Statement at www.reachmarkets.com.au and the relevant Product Disclosure Statement, Prospectus or offer documents to understand the features, risks and returns associated with the investment. Reach* may have a material interest in and may earn fees or brokerage from any securities referred to in business or in which we seek to do business with. Please refer to the relevant offer documents for full details. Trading options is not suitable for everyone. There is a risk that you can lose more than the value of a trade or its underlying assets. You should only act on the information we provide if you are confident that you fully understand what you are doing. Past returns do not always indicate future returns, and it is also possible to make significant losses. There is always a risk of loss when trading and investing. *Reach refers to Reach Markets Pty Ltd (ABN 36 145 312 232) (CAR No: 431191), Reach Corporate Pty Ltd (ABN 76 638 960 540) (CAR No:1281636), Reach Trading Pty Ltd (ABN 16 615 714 442) (CAR No.1265855) of Reach Financial Group Pty Ltd (ABN 17 090 611 680) who hold an Australian Financial Services Licence (AFSL) 333297. Sources:

This Week’s News

News

31st May 2024

Top geo backed by leading resources funds believes he has discovered a potential new gold-copper district

News

8th May 2024

BHP Xplor winner coming to the ASX

News

4th May 2024

AI Industrial Revolution: Aussie company unlocking AI for multinationals

General Advice Warning

Any advice provided by Reach Markets including on its website and by its representatives is general advice only and does not consider your objectives, financial situation or needs, and you should consider whether it is appropriate for you. This might mean that you need to seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG)

including the Privacy Statement and any relevant Product Disclosure Statement or Prospectus (if one is available) to understand the features, risks and returns associated with the investment.

Please click here to read our full warning.

Close
Search

Hit enter to search or ESC to close

cookie By using this website, you agree to our cookie policy. Close