AZL Daily Report, page-29

Indecision continues - can we get over it one way or other?

Yes AZL remained flat to finish at 7c. Our volume was on lower side, just over 8m shares traded. A dull day with no direction, hence we finished flat.

ASX Li stocks were generally slightly weak. Of the 54 stocks that I track, average decline was 1%..

Overnight US Li stocks were also weak and they are also decline an average of 1%.

What next:
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Yesterday US markets stopped a string of 5 say decline - probability was the winner. Indices were green with SP 500 gaining around 0.75% to reach 3963. ASX too was in good mood and gained around 0.5%.

So although SP 500 did gain but it looked more like consolidation in the mid 3900s. Just a few days back it spent around 2 weeks trading around 3950 and now its again gone there - waiting for someone to take control. Currently sitting in no-man's land with an indecisive behaviour.

Lead indicators were mixed with Dollar Index and Volatility Index VIX falling (good for stocks) whereas Yields gaining (not so good for stocks) - so no clear direction.

Although the indices have made decent gains, even after falling few percentage now, but most resource stocks are very timid. There seems to be a fear that something bad is going to happen - hence punters are very hesitant to commit and off-loading at the slightest weakness. After June bottom, this is the next weakest phase in resource stock prices. Although some stocks are better, but many are within 10-20% of June bottom - which doesn't make sense.

Its basically the fear of unknown - what's going to happen next. Fears of recession next year. Many calling for another 15-20% drop in indices. I feel as such we are not gaining much, if its to fall, lets get it out of the way, else lets just go up.

Tonight crucial PPI data. Next week CPI data. I hope these 2 events provide clear direction.
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So what will happen tonight? Its another binary event tonight, so unpredictable. PPI data before market opens. Also a Friday which usually has a big night - the stage is set for both bears and bulls to tear it apart in one direction. Last few economic data has been good. There is a chance we may get another good number which will propel us to the next big jump into 4030/4230 and get us out of bear market. Will that happen? Lets hope so. Enjoy your weekend and all the best.