Here’s what we’re seeing…
1. Defensive yield names have underperformed the market despite cash rates being cut to record lows;
2. Equity market has established a new trading range with 6000 being the ceiling;
3. Equity raisings – primary and secondary, are increasing as the market fails to break recent highs;
4. Bonds have sold off aggressively as the deflation threat subsides;
5. Commodity stocks have led commodity prices;
6. Gold remains range bound reacting to movements in the bond and currency markets;
7. Long term short positions are losing conviction;
8. Unwind of consensus macro trade very evident – short resources, commodities and long the USD;
9. Quant funds are very aggressive on any buy/sell signal; and
10. AUD appears to be driven by offshore rather than domestic events.
