Australian (ASX) Stock Market Forum

How much RED for ASX 200 on Monday?

Jump to new
Re: How much RED for ASX200 on Monday?

Although I'm a little concerned with how the market went in the last few days, I think people are over-reacting WAY too much. Yeah, price of gold, oil and other base metals went down fair bit compared to few days ago but it's still very high and it seems like people are forgetting that they went up very quickly in a very short space of time. Hopefully, base metal prices and oil prices will recover tonight and sometime this week to put confidence back into commodities.
 
Re: How much RED for ASX200 on Monday?

coladuna said:
Although I'm a little concerned with how the market went in the last few days, I think people are over-reacting WAY too much. Yeah, price of gold, oil and other base metals went down fair bit compared to few days ago but it's still very high and it seems like people are forgetting that they went up very quickly in a very short space of time. Hopefully, base metal prices and oil prices will recover tonight and sometime this week to put confidence back into commodities.
Click to expand...


:iagree:

Copper was $6,000t just over a month ago, recently it tested $9000t, 50% in 1-2months :eek:, now its dropped back to $8000t so what!

If it stays above $5000t most copper producers willbe sitting on Bonaza profits!


I am happy oild has dropped below $70 as it was the only dark horse that worried me,

And gold while worrying is still @ very high levels
 
Re: How much RED for ASX200 on Monday?

I agree...I don't understand why people are dumping mining stocks. Well, I can understand getting rid of some that aren't producing - but all the other ones with actual producing mines are raking it in at the moment. This little commodities correction is only cutting into their massive extra profit!

*sigh* is this just a case of investor panic? Everyone was looking for any sign that we were going to see another tech-crash (stupid analogy in my opinion) and then when it shows they all bail?
 
Re: How much RED for ASX200 on Monday?

Hi LPA :)

I don't think it's as simple as saying that the commodities corrrection is eating into already massive profits and so why dump mining stocks.

Generally speaking, imo it's basically anticipated EPS growth that drives up share prices of any stock and so if in this case if commodity prices tumble then at the very least investors and most likely traders could think that EPS growth will then be lower than first thought and hence share prices are marked down due to the lower growth....especially if they ran up too hard too fast, in relation to expected future earnings, recently.

Another way of looking at it is that yes although many company profits will still be higher this year than last year they might not be as high as the market thought they might be say a week or so ago.

hope this helps

cheers

bullmarket :)
 
Re: How much RED for ASX200 on Monday?

Yeah thanks, that does clear it up a bit. Hopefully we will see metals rally again after this correction and then we can all rest easy once more :)
 
Re: How much RED for ASX200 on Monday?

Unfortunately I bought fairly heavily into a number of Zinc stocks on Friday, so I've been hit rather hard!

This morning I was panicking, but as others have said this resource boom most probably has much more steam, so I'm staying in for now.

A 6% loss this week still has me at a 20% profit for the year so hopefully the bull will keep on keeping on over the coming months!

Any predictions on where its headed tomorrow?
 
Re: How much RED for ASX200 on Monday?

Looks like they are steadying a little Ray, but don't be too complacent about things. It's going to be a very choppy ride.
 
Re: How much RED for ASX200 on Thursday?

Same again please Morris...

US down nearly 2%, FTSE down nearly 3%.

ASX down... ??

GP
 
Re: How much RED for ASX200 on Monday?

ASX around 2% down.

I expect and hope commodities stock to go down 3%+, it will be healthy for the market.

WB
 
Re: How much RED for ASX200 on Monday?

down 110 points so far!

its so hard seeing those profits slip away and resist selling

but I still hope things will turn around next week
 
Re: How much RED for ASX200 on Monday?

The ~5150 potential support for the XJO I posted earlier in this thread is looking very wobbly atm.

If inflation fears take a really strong grip then testing the next potential support in the 4800-5000 range (from Jan/Feb this year) becomes very likely imo in the next few weeks :)

cheers

bullmarket :)
 
Re: How much RED for ASX200 on Monday?

With all the selling again today I wonder if the ASX will experience 'technical difficulties'.....
 
Re: How much RED for ASX200 on Monday?

Well the buying began again at just under 5100.....I don't think it will last too long though :( I guess this is the week we go under 5k again.

*edit* rallied 35 points. I still don't have a good feeling about the rest of this week though :(
 
Re: How much RED for ASX200 on Monday?

I guess only time will tell LPA :)

But remember that markets go down in waves just as they do when they go up.......so the point I'm making is..........beware of 'dead cat bounces'.. :)

cheers

bullmarket :)
 
Re: How much RED for ASX200 on Monday?

Just so I have this clear...

A 'dead cat bounce' is when the market declines rapidly, starts coming back up quite strongly, only to fall again rapidly. Is this correct?
 
Re: How much RED for ASX200 on Monday?

Eeewww I hate all those red arrows !!! Makes me feel poorly. :banghead:
 
Re: How much RED for ASX200 on Monday?

LPA said:
Just so I have this clear...

A 'dead cat bounce' is when the market declines rapidly, starts coming back up quite strongly, only to fall again rapidly. Is this correct?
Click to expand...

That's basically it LPA ;)

The saying comes from the analogy of someone throwing a cat out of say a 10 storey building and after it bounces up from the footpath it only manages to reach say the 5th floor before falling down again :D

my apologies to any cat lovers in here :p:

cheers

bullmarket :)
 

Similar threads

Miner
What will the Australian market do on Monday?
Replies
8
Views
2K
Bellcose
B
Top