ASX Tumbles | Five Key Points

The Australian market rubbing out RBA rate cut bets was always going to hurt. Markets like certainty. So while the ASX fell 1.7% today, CBA sank 2.2%, and GOLD, COAL, and TRAVEL stocks hit fresh highs. Here are 5 points to note:

My Interview on SBS World News: Podcast SBS World News. TV Interview will be aired this evening at 7pm Sydney time.

1- Remember, markets/stocks don't go up in a straight line. The broad #ASX pullback today, the biggest since Sept 9, is a reminder to take profits from your winners or hedge. Investment managers do this too.

2- What are the signs to watch for before taking profits? Some investment managers set a target before selling out. For example, do you want to take profits from a stock after you've made 10%, 20%? Markets tend to pull back when the volatility index (VIX), bond yields, and the US dollar rise. These have spiked lately due to some US Fed speakers saying US rates don't need to be cut as much, plus there is rising US election uncertainty. It's two weeks away.

3- Remember, there is always a bull market somewhere. Look for where momentum is and why. For example, today coal stocks: $SMR +3.4%, $YAL +3%, as the coal price is up 12% since Sept, with China now importing a record amount of coal as it turbocharges its economy.

4- And gold stocks are charging. $WGX hit a 12-month high, $WAF is chasing its high, and $GOR is heading to its high.

5 - Markets generally rally after US election certainty. That's when we might see some of that US$6 trillion in cash start to come into markets.

Some of these points were shares with the Australian today and my TV interview with SBS World News

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more

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Jessica Amir

Moomoo Official Market Strategist

moomoo, market strategist. Seen/heard on Fox News Business, ABC, SBS, Reuters wires. Investor/Trader. Connect with me.

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