What I’m watching this week
Reporting season is a busy time, there is a lot of noise in the market and the financial news is an absolute waste of time reading because they are mostly writing about the past. I’m only interested in the current and future. Past results are ok to look at, but not more than 10% of your time.
You should focus the majority on expanding your mindset so that you can find future opportunities before the market has priced them up. This is the key to trading and investing. The key to making money in financial markets.
This so note this week is short and brief. Our recent results have been solid – particularly the trading updates that we have been sending out to Invast clients. If you’re not a client then I’m sorry to say, you are missing out on some amazing opportunities. Take ALQ for example, I wrote a note to Invast clients in early June advising them to buy the stock with pinpoint entry and exit points. Those who took the recommendation and played it right should have entered in the low $5 per share range and as I write, the stock price is sitting just below $6.*
That’s not all I’m interested in, I note that yesterday’s volume was solid going into the close. Being turnover which suggests that we should get a good idea of where things are going in this business over the next few days or weeks. We’re holding on and clients will get an update next week. Again if you’re not a client of Invast, you’re missing out on these updates.
The other thing I’m observing is the lack of volume generally in the mid-cap space. Prices are going higher, the market is moving higher, but the mid-cap space (generally $2bn-8bn) seems very quiet to me. If this remains, the case even after reporting season winds down then I’m going to start becoming a bit more bearish and calling for a top. Too much noise at the moment to make that call with results flying everywhere.
So that’s what I’m looking at and these are the types of insights we’re pointing to our clients. If you’re not an Invast client, it might be a good time to get your trading account ready. You can self-navigate through our simplified account opening process here.
Chief Market Analyst
Peter Esho is a member of Invast’s Investment Committee and Chief Market Analyst at Invast Financial Services in Australia. The Invast’s Investment Committee constructs professionally constructed global thematic portfolios of Direct Market Access (DMA) CFDs over highly liquid global shares and ETFs through its new PortfolioInvestor platform. Since 1960, the Invast Group has grown to become one of the largest and most successful global brokerage firms, offering state-of-the-art trading technology and unparalleled service catering to all levels of traders.
Invast Financial Services Pty Ltd (ABN 48 162 400 035) is regulated by the Australian Securities and Investments Commission and holds an AFS Licence 438283 which authorises it to carry on a financial services business in Australia.
*Past performance is not indicative of future performance. These performances exclude financing and commissions costs.