monday market outlook

  1. 5,316 Posts.
    Well the Dow is up very strong and no doubt we will expect our market to do well on Monday morning. But I can't help noticing from the past, when the Dow is strong our market tend to do nothing or only manage a small rise. The resources should continue to do well for BHP and RIO with the Durable Goods order out of the US last night is very strong economic data.

    Our market manage to rise most of last week when the Dow was struggling. I read an article last night stating the International Funds has a very high outflow of the US markets last week, which could explains why our market was benefiting from it. Now the US markets are looking good, are we going to see an outflow of fund from our market ?

    Bond is continue to crash and high yield makes equity less attractive expecially banks stock. The Aust dollar is expecting to rise further next week, will it effects BHP, RIO, and NCP ?

    I am not quite sure how to trade from here but there is definitely a shift from banks to resources but has the resources stocks run far enough or more to come ? Anyway I would prefer to hold resources stock instead of banks at the moment.

    The Dow is approaching the recent high of 9400's. Will it breaks or come off ?

    All advises and comments are welcome.
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