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Long-time readers of both flavours of Rant (yes, Rants have 'flavours'; in that sense they are like quarks, except that I use the correct spelling for 'flavour' unlike Americans)... as I was saying: long-time readers of the Rants will know that one of the highest-probability setups in the trading armoury (note again... proper spelling) is to fade any excessive opening optimism (or pessimism).
Today was no different - the pre-market SPI got up around 3500, for goodness' sake! (I rarely use exclamation marks, but this one is warranted). Anybody who bought the pre-open got a damned good thrashing in the following couple of hours; those who bought stocks in the opening surge likewise will have had Buyers' Remorse by lunchtime.
Then the thing tried - for the umpteenth time (as my Mum would say) - to rally. No doubt it was buoyed by hopeful nuffies who are stupid enough to be swayed by silly blatherings about how the US government will save Citigroup (ha ha) and then everything will be great and it will be a new bull market and unicorns that shit Mars Bars will read us passages from the Bible about how baby Jeebus hates him some fags and loves him some guns.
Well, it makes about as much sense as the crap t hat passes for analysis on CNBC.
Actually, speaking of CNBC, take a look at the video below. It is a very clever thing - the use of 21st century technology (the interwebs and the YouTube holes therein) to ridicule CNBC.
Lately CNBC have been humiliated into bringing Peter Schiff back on, and apologising to him and according him the respect he deserves. Schiff cleverly used YouTube to humiliate CNBC - watch the vid.
Schiff is right up there in the Rant taxonomy of people worth listening to: he's there with Marc Faber, Bill Fleckenstein, and myself.
He has been right all the way down, and was outright mocked on CNBC during 2006 and 2007. I urge you to watch it - look at the smug arseholes who were mocking Schiff, and next time you see them on the TV remember how utterly, fantastically, idiotically wrong they were.
OK... let's move on.
As I wrote yesterday in a comment somewhere on the interwebs, not enough people have properly digested Epicurus' rather insightful aphorism:
If God is willing to prevent evil, but is not able to Then He is not omnipotent.
If He is able, but not willing Then He is malevolent.
If He is both able and willing Then whence cometh evil?
If He is neither able nor willing Then why call Him God?
Old Epicurus was on to something. And if you put "crisis" and "government" in place of "evil" and "god" (and change the pronouns), then you will get a very good argument against government - who for at least the last two centuries have put themselves forward as being able to solve social ills, have raped our paypackets in order to (partially) fund their insatiable desire to meddle, have deprived us of our liberty whenever it suited them, and have basically treated each of us as if we were the property of the government.
So. Markets rallied based on the fact that there will be a change in the face that fronts the extortion racket in the US, and a change in the set of cronies that will act as overlords of different departments that waste the money that is raped from US citizens.
Frankly that's as bad a justification for a market rally as I have ever seen.
And today the Strayan market rallied late in the afternoon, on the basis that a dead US company will be 'saved' by using the proceeds of the rape of US paypackets, plus some loans from China.
As an aside, I note that Citigroup was identified by me as dead - and I quote myself [thanks for the pointer. Leigh] on January 6th of this year (there were other, even earlier warnings in these pages, but this is the most colourful):
Citibank stopped people from withdrawing their full whack from its ATMs recently... explaining that some ATMs had been hacked.
Yeah, right... why only Citi? I smell a corpse in their accounts, and a need to retain cash to keep within regulatory guidelines.
If you're on the hunt for rotten hollow logs, you find traces of rot if you know where to look.
So anyway... as I've been saying for a while now... this is not the bottom (and yes, I know I called for the next bear leg down to reach 3400, and yes, it's done that. But a downside target is not the same as saying "from 3400 it will bounce"). Still. too. much. Hope.
Today you can think of the session as being "Resource Bounce Offsets Bank Debacle"... hence the title.
Major Market Indices
The broad market - the All Ordinaries (XAO) - advanced modestly, rising 1.9 points (0.06%), finishing at 3388.8 points. The index hit an intraday high of 3403.4 at 10:06 am, while the low for the day was 3337.1 - set at 12:52 pm Sydney time.
Total volume traded on the ASX was 1.15bn units, 9.8% below its 10-day average of 1.27bn shares.The ASX's daily listing of all stocks included 1057 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 441 issues rose, with volume in rising issues totalling 539.8m units; there were 408 declining stocks, which traded aggregate declining volume of 499.3m shares.
Of the 489 All Ordinaries components, 216 rose while 201 fell. Volume was tilted in favour of the gainers by a margin of 1.1:1, with 458.59m shares traded in gainers while 424.13m shares traded in the day's losers.
The Index that forms the cash basis for the SFE's Share Price Index Futures - the S&P/ASX 200 (XJO) - posted a modest rise of 8.6 points (0.25%), closing out the session at 3425.1 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 3388.80 | 1.90 (0.1%) |
| ASX 20 | 2052.50 | 14.50 (0.7%) |
| ASX 50 | 3452.10 | 14.80 (0.4%) |
| ASX 100 | 2819.80 | 8.30 (0.3%) |
| ASX 200 | 3425.10 | 8.60 (0.3%) |
| ASX 300 | 3406.50 | 9.20 (0.3%) |
| ASX Mid-Cap 50 | 3140.60 | -23.00 (0.7%) |
| ASX Small Ordinaries | 1596.00 | -0.30 (0.0%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - advanced by under a percent, adding 14.5 points (0.71%), closing out the session at 2052.5 points.
The 21 stocks which make up the index traded a total of 151.77m units; 10 index components rose, with rising volume amounting to 94.13m shares, while the 10 decliners had volume traded totalling 51.67m units. The major percentage gainers within the index were
- Newcrest Mining (NCM), +$2.14 (9.97%) to $23.60 on volume of 3.7 million shares;
- BHP Billiton (BHP), +$1.48 (6.76%) to $23.38 on volume of 18.1 million shares;
- Stockland (SGP), +$0.22 (6.51%) to $3.60 on volume of 3.6 million shares;
- Woodside Petroleum (WPL), +$1.07 (3.69%) to $30.07 on volume of 2.1 million shares; and
- Origin Energy (ORG), +$0.45 (2.91%) to $15.90 on volume of 3.8 million shares.
On the less salubrious side of the big-cap fence, the following stocks were the worst-performed within the index:
- QBE Insurance Group (QBE), -$1.16 (4.85%) to $22.75 on volume of 2.9 million shares;
- Brambles (BXB), -$0.29 (3.87%) to $7.21 on volume of 4.7 million shares;
- ANZ Banking Group (ANZ), -$0.46 (3.44%) to $12.90 on volume of 13 million shares;
- Suncorp-Metway. (SUN), -$0.21 (3.04%) to $6.70 on volume of 4.5 million shares; and
- Commonwealth Bank Of Australia (CBA), -$0.73 (2.36%) to $30.22 on volume of 6.1 million shares.
The ASX Small Ordinaries (XSO) slid almost imperceptibly, falling 0.3 points (0.02%), closing out the session at 1596 points.
The 209 stocks which make up the index traded a total of 282.94m units: volume in the 96 gainers totalling 134.79m shares, with trade totalling 127.97m units in the index's 90 declining components. The major percentage gainers within the index were- Babcock & Brown Communities Group (BBC), +$0.03 (22.73%) to $0.14 on volume of 1.9 million shares;
- Atlas Iron (AGO), +$0.10 (22.22%) to $0.55 on volume of 1.4 million shares;
- Australian Education Trust (AEU), +$0.05 (21.43%) to $0.26 on volume of 195.4 thousand shares;
- Babcock & Brown Power (BBP), +$0.01 (20.69%) to $0.04 on volume of 11.5 million shares; and
- Citigold Corporation (CTO), +$0.04 (19.44%) to $0.22 on volume of 2.7 million shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- Rivercity Motorway Group (RCY), -$0.03 (15.62%) to $0.14 on volume of 1.3 million shares;
- Gunns (GNS), -$0.11 (14%) to $0.65 on volume of 1.9 million shares;
- Straits Resources (SRL), -$0.1 (13.33%) to $0.65 on volume of 3.4 million shares;
- Lynas Corporation (LYC), -$0.03 (9.09%) to $0.25 on volume of 5.2 million shares; and
- Compass Resources (CMR), -$0.03 (8.93%) to $0.26 on volume of 190.4 thousand shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 3388.8 | 1.9 | 0.06 | 926.4m |
| XFL | ASX 50 | 3452.1 | 14.8 | 0.43 | 368m |
| XJO | ASX 200 | 3425.1 | 8.6 | 0.25 | 802.3m |
| XKO | ASX 300 | 3406.5 | 9.2 | 0.27 | 881.6m |
| XMD | ASX Mid-Cap 50 | 3140.6 | -23 | -0.73 | 246m |
| XSO | ASX Small Ordinaries | 1596 | -0.3 | -0.02 | 267.6m |
| XTL | ASX 20 | 2052.5 | 14.5 | 0.71 | 148.2m |
| XTO | ASX 100 | 2819.8 | 8.3 | 0.3 | 613.9m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 10 | 43 | 87 | 216 | 96 | 441 |
| Declines | 10 | 52 | 106 | 201 | 90 | 408 |
| Advancing Volume | 94.1m | 303m | 381.6m | 458.6m | 134.8m | 539.8m |
| Declining Volume | 51.7m | 294.3m | 392.8m | 424.1m | 128m | 499.3m |
GICS Industry Indices
Among the 11 industry indices, 4 registered an advance for the session, the remaining 7 lost ground.
The best performing index was Materials (XMJ), which added 330.7 points (4.72%) to 7340.5 points. The 45 stocks which make up the index traded a total of 263.75m units; 24 index components rose, with rising volume amounting to 101.42m shares, while the 21 decliners had volume traded totalling 162.33m units. The major percentage gainers within the index were
- Atlas Iron (AGO), +$0.10 (22.22%) to $0.55 on volume of 1.4 million shares;
- Lihir Gold (LGL), +$0.33 (18.33%) to $2.13 on volume of 30.1 million shares;
- Coeur d'Alene Mines Corporation (CXC), +$0.11 (17.46%) to $0.74 on volume of 127.3 thousand shares;
- Mount Gibson Iron (MGX), +$0.04 (17.07%) to $0.24 on volume of 14.6 million shares; and
- St Barbara (SBM), +$0.04 (15.56%) to $0.26 on volume of 7.1 million shares.
Second in the index leadership stakes was Energy (XEJ), which gained 269.8 points (2.48%) to 11133 points. The 19 stocks which make up the index traded a total of 47.6m units; 11 index components rose, with rising volume amounting to 29.01m shares, while the 8 decliners had volume traded totalling 18.59m units. The major percentage gainers within the index were
- Paladin Energy (PDN), +$0.13 (6.95%) to $2.00 on volume of 5.9 million shares;
- ROC Oil Company (ROC), +$0.04 (6.14%) to $0.61 on volume of 1 million shares;
- Aquila Resources (AQA), +$0.22 (5.95%) to $3.92 on volume of 347.6 thousand shares;
- Linc Energy Ltd (LNC), +$0.10 (4.48%) to $2.33 on volume of 353.5 thousand shares; and
- Woodside Petroleum (WPL), +$1.07 (3.69%) to $30.07 on volume of 2.1 million shares.
The bronze medal for today goes to Healthcare (XHJ), which climbed 69.1 points (0.87%) to 7985.4 points. The 9 stocks which make up the index traded a total of 15.7m units; 5 index components rose, with rising volume amounting to 12.36m shares, while the 4 decliners had volume traded totalling 3.34m units. The major percentage gainers within the index were
- CSL (CSL), +$0.65 (2.11%) to $31.50 on volume of 3.2 million shares;
- ResMed Inc. (RMD), +$0.10 (1.98%) to $5.15 on volume of 1.5 million shares;
- Ansell (ANN), +$0.22 (1.83%) to $12.25 on volume of 783.7 thousand shares;
- Primary Health Care (PRY), +$0.04 (1.02%) to $3.98 on volume of 2 million shares; and
- Sigma Pharmaceuticals Ltd (SIP), +$0.01 (0.42%) to $1.20 on volume of 4.8 million shares.
The worst-performed index for the session was Utilities (XUJ), which dipped 115.3 points (2.7%) to 4162.9 points. The 11 stocks which make up the index traded a total of 91.41m units; The 6 decliners had volume traded totalling 12.98m units, and 4 index components rose, with rising volume amounting to 74.56m shares, The major percentage decliners within the index were
- APA Group (APA), -$0.21 (7.34%) to $2.65 on volume of 750.4 thousand shares;
- Duet Group (DUE), -$0.13 (6.5%) to $1.87 on volume of 3.9 million shares;
- Babcock & Brown Wind Partners Group (BBW), -$0.04 (6.06%) to $0.62 on volume of 5.3 million shares;
- Envestra (ENV), -$0.03 (5.45%) to $0.52 on volume of 1.2 million shares; and
- Hastings Diversified Utilities Fund (HDF), -$0.1 (4.35%) to $2.20 on volume of 428.7 thousand shares.
Just missing out on the wooden spoon was Financials ex Property Trusts (XXJ), which slid 68.3 points (1.83%) to 3668 points. The 27 stocks which make up the index traded a total of 86.21m units; The 16 decliners had volume traded totalling 48.25m units, and 9 index components rose, with rising volume amounting to 35.86m shares, The major percentage decliners within the index were
- AXA Asia Pacific Holdings (AXA), -$1.1 (21.53%) to $4.01 on volume of 7.2 million shares;
- Challenger Financial Services Group (CGF), -$0.1 (6.45%) to $1.45 on volume of 1.6 million shares;
- FKP Property Group (FKP), -$0.05 (5.03%) to $0.85 on volume of 359.1 thousand shares;
- QBE Insurance Group (QBE), -$1.16 (4.85%) to $22.75 on volume of 2.9 million shares; and
- Lend Lease Corporation (LLC), -$0.31 (4.35%) to $6.81 on volume of 666.1 thousand shares.
Third-to-last amongst the sector indices was Industrials (XNJ), which slid 52.8 points (1.67%) to 3104.8 points. The 32 stocks which make up the index traded a total of 85.3m units; The 18 decliners had volume traded totalling 40.81m units, and 10 index components rose, with rising volume amounting to 39.21m shares, The major percentage decliners within the index were
- Asciano Group (AIO), -$0.21 (15.3%) to $1.14 on volume of 11 million shares;
- CSR (CSR), -$0.11 (7.75%) to $1.31 on volume of 10.6 million shares;
- Leighton Holdings (LEI), -$1.54 (7.55%) to $18.86 on volume of 988 thousand shares;
- PMP (PMP), -$0.04 (6.06%) to $0.62 on volume of 656.6 thousand shares; and
- Transpacific Industries (TPI), -$0.15 (4.76%) to $3.00 on volume of 584.3 thousand shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XMJ | Materials | 7340.5 | 330.7 | 4.72 | 264m |
| XEJ | Energy | 11133 | 269.8 | 2.48 | 48m |
| XHJ | Healthcare | 7985.4 | 69.1 | 0.87 | 16m |
| XTJ | Telecommunications | 1347.9 | 6.5 | 0.48 | 48m |
| XIJ | Information Technology | 376.3 | -2.2 | -0.58 | 3m |
| XDJ | Consumer Discretionary | 1068.8 | -8.5 | -0.79 | 37m |
| XPJ | Property Trusts | 895.8 | -10.4 | -1.15 | 101m |
| XSJ | Consumer Staples | 6079 | -73.5 | -1.19 | 27m |
| XNJ | Industrials | 3104.8 | -52.8 | -1.67 | 85m |
| XXJ | Financials ex Property Trusts | 3668 | -68.3 | -1.83 | 86m |
| XUJ | Utilities | 4162.9 | -115.3 | -2.7 | 91m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| OZL | OZ Minerals | 0.52 | -0.08 | -12.61 | 63.3m |
| BBI | Babcock & Brown Infrastructure Group | 0.03 | 0.01 | 21.43 | 55.5m |
| TLS | Telstra Corporation. | 4.03 | 0.05 | 1.26 | 37.6m |
| LGL | Lihir Gold | 2.13 | 0.33 | 18.33 | 30.1m |
| PNA | PanAust Ltd | 0.13 | -0.01 | -7.14 | 28.9m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| CUS | Customers | 1.05 | 0.95 | 900 | 2k |
| AGG | Anglogold | 6.00 | 1.75 | 41.18 | 12.1k |
| MML | Medusa Mining | 0.55 | 0.14 | 34.15 | 78.2k |
| PBD | Port Bouvard | 0.23 | 0.06 | 31.43 | 355.2k |
| ALD | Allied Gold | 0.28 | 0.07 | 30.23 | 59.8k |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| ARR | Arasor International | 0.02 | -0.02 | -46.15 | 224.4k |
| CKT | Challenger Kenedix Japan Trust | 0.30 | -0.10 | -25 | 230.5k |
| NFK | Norfolk Group | 0.34 | -0.10 | -21.84 | 189.6k |
| AXA | AXA Asia Pacific Holdings | 4.01 | -1.10 | -21.53 | 7.2m |
| IEF | ING Real Estate Entertainment Fund | 0.30 | -0.08 | -21.33 | 73.4k |
