Momentum Monday 08 April 2024

7th Apr by Elio D'Amato

2 comments 354 reads

Welcome to Momentum Monday.

And exhale….

Just a breather for markets across the world over the past week, except Gold and Oil. And before I discuss these in detail, it's timely to remind everyone that within a Momentum market, not all boats float. There will inevitably be pockets of action and we just need to be mindful of these.

With current events, it's hard sometimes to not feel emotionally involved and try to do more than necessary. Irrespective of one’s beliefs, trying to marry the market at the moment with the state of world affairs is difficult. That is how Momentum can help and I hope this has been useful to your education as an investor as it attempts to demystify current movements.

Also this is the last time I will ask… If you have a thought on whether you want more frequent communication from us, or whether ‘less is more', tell us below or email us at support@stockopedia.com.au. Note: this is not to create ‘new’ content. Rather it is the same output delivered in a different way. If you don't tell us we’ll never know.

Interesting links

We released the first quarter NAPS review las week. If you missed it you can read about it here.
Weekend Watchlist with Shares for Beginners this week sees Chris Batchelor talk about Smartgroup (ASX:SIQ). Listen here to the replay
For very new members and those on a trial we hold our next preliminary education webinar. Book your place here
Don’t forget our “Empower Others” referral program Learn more here
For any external commentary we make to the broader market, follow us on Social Media Facebook Linkedin Instagram or X (formerly Twitter) For the moment, we don’t spam you. Please see above.

This week’s content is as follows:

Broader market sentiment
Member corner
Stocks in the “Shine Zone” (including changes)
Buses pulling out of the station (volume + price movers)
52 week high screen (including changes)

A reminder that you don’t have to read all this contribution. Simply scroll to the area of interest.

Broader Market Sentiment

We look at the direction of both the US and ASX markets to gain an…

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ADM123

8th Apr

Looking for feedback?

Thanks for the data. I wonder if the focus on Australian shares is too narrow as the US markets offer wider choice and better returns based on total market performance.?

Currently i am working on three investment themes:

1. As inflation and interest rates decrease this will have a positive impact on high dividend stocks as dividend seekers move from deposits to dividend stocks,

2. With US shale oil drying up in the US and Russia’s refineries under attack plus economies picking up oil prices increase. So oil stocks are in a favour .

And high yeilding oil stocks combine both 1 and 2.

3. Question: The next phase of the AI boom will be downstream companies . How do you identifying these before they become mainstream?

Elio

10th Apr

Hi ADM123,

Thank you for the feedback. I totally respect your comment about the US Market and the need to diversify. Chris and I however are charged with looking after this corner of the world, and the reality is that there remains a 'homeward' bias when investing for many. So to that end, we will stick with local stocks, and this section is definitely with a Momentum bias. But your comment is still very valid. And the good news is Stockopedia looks after numerous regions so quantitative insights are available everywhere.

In quick response to your other points. I would have bet my house that back when the events of October 2023 occurred plus all the drone attacks, that oil prices would have gone up. But it didn't. Hence in my view the need for Momentum as an investor in the 'stories'. Also I am sure you saw that stubborn inflation figures overnight in the US. I just worry that the chorus of expected rate cuts may be louder than the actual instruments. Therefore just be cautious.... though it is good to see favour return to 'black gold' for all those reasons you specify.

Finally, oil + dividend means my mind goes immediately to WDS and heaps of others where the combo is found, through strong performers on a total return basis less so. As Chris and I have ad museum been saying. The differentiation between price takers and price makers is stark when it comes to writing their own destiny. If the oil thematic plays out as expected then this indeed this will be a tailwind and your strategy makes sense. Where as if it fails, even the most stoic of dividend policies will result in a drop in distribution if the underlying commodity falls... then there is the share price....

Thanks for raising. Elio

Momentum Monday 08 April 2024

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Elio D'Amato

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