ASX: Banks and Miners v the Rest

The struggle between miners and banks is changing.

The ASX 200 rallied this week, breaking out of its downward trend channel. Although in a primary down-trend after breaching 5800, the index is enjoying strong support.

ASX 200

And that is despite the Banks taking a hammering.

ASX 300 Banks

Miners did nothing this week.

ASX 300 Banks

But most other sectors rallied strongly: Consumer Staples…

ASX 200 Staples

Consumer Discretionary, Health Care…

ASX 200 Health Care

Utilities and Industrials.

ASX 200 Industrials

The change reflects a rosier global outlook, with Commodities rising, but I doubt that it can last without support from the ASX 200’s two biggest sectors.

2 thoughts on “ASX: Banks and Miners v the Rest

  1. Solomon says:

    Mining shares = they are due to correct downwards in line with the UBS Commodity Index reaching two-year resistant levels, as the US$ resumes it’s three-month strength into the medium-term.

    Banking shares = the Royal Commission’s later findings will really negatively impact banking profits / financial services structure and the continuity of existing employees / ASIC’s regulations and supervision of the sector and quality-of-earnings valuations.

    Sell XJO therefore [ and the S&P 500 , where extreme valuations ** provide the high risk of an implosion, negating your contention that ” It is unlikely that the market will capitulate when presented with such strong earnings” in http://tradingdiary.incrediblecharts.com/2018-04-27-markets-economy-gold.php

    ** http://www.multpl.com/shiller-pe/

    Regards 🙂

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