ASX Morning call 13th Nov, page-2

SPI200 Commentary

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SPI had a big reversal day Monday as it was well bid during the day and closed at the highs. This was totally reversed during Sycom and send the SPI back just under the opening levels. Just when bulls thought XJO was safe and heading back to 6000 the Dow bears decide the ruin the party. One of the big themes from overnight was the strength in the USD, this led to big sell offs in metals and this will probably be the leading drag on SPI today. BHP and RIO had big moves yesterday so expect that to be reversed. 2 of the Big 4 have paid dividends also along with WBC today, so expect investors to be weighing up holding them in the portfolio for their next dividend. So looking mainly for bounces to sell today, for some reason SPI seems to be holding up better than SNP recently but that can quickly change if Global investors want to take more risk off. For todays trading I am looking to buy dips around 5830 and sell rallies around 5880