BUY THE ASX200

Yes, the Australian index, recently there is a great bargain opportunity, just tonight the ASX 200 rose by 1.2%, climbing from a one-week low. Sydney index’s pivotal stock groups are the banks and miners are both jumped higher.

It was a good morning for us because we hold some significantly huge positions from level of 5,400 and gained from level up to 5,460. We have covered some of our positions this morning and reopened and kept some others because we are still very bullish on ASX200. Why?

We have technical and sentiment reasons. In terms of technical issues we see a good arbitrage deal on ASX200 the reason is that the Australian benchmark index couldn’t gain much in the last couple of weeks while US indices are gained to new records. It seems lazy the ASX200 index and lagging far behind the American benchmark indices.

All in all to own ASX200 is a good bargain because it is cheap and quite far from the previous tops 5,500 (April 2014). Therefore we are expecting more gains on the long side and we are so optimistic about that the index needs to hit its previous high at 5,565. That is only question of time. It seems the futures will close tonight above the resistance level of 5,440 so this breakout opens the way up to that area.

The BFM Assets Team.