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Market wraps 19th March 2021

Morning Bell - Jessica Amir

US Economic recovery stocks fell off their all-time high podium overnight as Bond yields spiked again. The US 10 year bond hit a yield of 1.7%, while the 30-year bond rate topped 2.5%. Bonds now offer a better yield than the average US Tech stocks, which pay an average 1.5% yield.  

This is why we’ve seen the rotation out of US an Aussie tech stocks, and into companies with stronger balance sheets that and pay dividends.

What to watch today: 

  • The market is expected to pull back 0.6% on Friday and end lower across the week, marking the first fall in three weeks.
  • Oil stocks are likely to see heavy profit taking today after the sector’s gained 63% in a year –
  • Other Commodity stocks might be a shining light; Platinum, gold, silver and iron
  • Keep an eye on some of the most traded stocks from yesterday. For our active trader desk, Bell Direct Advantage they were: Sayona Mining (ASX:SYA), Integral Diagnostics (ASX:IDX) and 88 Energy (ASX:88E)

Trading ideas:

  • Chalice Mining (ASX:CHN) was given an upgrade by Bell Potter as Speculative BUY with new $6.35 target.
  • Galaxy Resources (ASX:GXY) was upgraded by Citi with a new $3.10 target but dubbed a high risk HOLD. Galaxy is now operating back at fully capacity to meet lithium demand, and is producing what lower grade spodumene that customers are willing to accept.
  • Lastly –Red River Resources (ASX:RVR), Nick Scali (ASX:NCK), and Resimac Group (ASX:RMC) could be worth considering, as they’re giving off bullish charting signals according to Trading Central