Between the Bells

As of today, 23% of the world’s population have received their first dose of the COVID-19 vaccine, according to Our World in Data. 

Overnight, big tech names Zoom, Facebook and Peloton all increased over 4%. 

Today, the futures are suggesting a negative day for the Aussie share market, given there are two days until the EOFY and three of Australia’s capital cities are in lockdown. 

What to watch today: 

• With two days until the EOFY, institutional investors are rebalancing their portfolios to sell stocks that have done well over the year, and buy those that have underperformed. With this in mind, stocks that are up 40 to 90% this year include mining stocks Chalice Gold Mines (ASX:CHN), Pilbara Minerals (ASX:PLS) and Codan (ASX:CDA). Banking stocks include Virgin Money (ASX:VUK) and Westpac (ASX:WBC), and building stocks include Reece Group (ASX:REH) and Boral (ASX:BLD). Uniti Group (ASX:UWL) is also one to watch.  
• COVID-19 restrictions and lockdowns are currently in place in Perth, Sydney and Darwin, so watch travel, tourism, hospitality and retail stocks. 
• Prime Minister Scott Morrison has announced that anyone under 40 years old can receive the AstraZeneca vaccine. 
• The iron ore price continued its recovery rising 0.4% to US$215.00. 
• The oil price is down to US$72.00 a barrel. 

Trading Ideas: 

• Bapcor (ASX:BAP) was upgraded by Citi overnight with a new $9.55 price target.
• Genetic Signatures (ASX:GSS) was reiterated as a Bell Potter Speculative BUY with a slimmer $2.20 price target. 
• VGI Partners (ASX:VGI), Kogan (ASX:KGN) and Rudbubble (ASX:RBL) are all giving off bullish charting signals according to Trading Central. 

 The Aussie share market is set for a slow start to the week, with the futures suggesting the market will rise 0.1%. 

What to watch today: 

• With three days to go until the EOFY, selling/portfolio adjustments continue. 
• The City of Sydney is currently in lockdown. So all eyes are on travel, hospitality and retail stocks. 
• Watch Endeavour Group (ASX:EDV), after it demerged from Woolworths (ASX:WOW) on Friday. 
• The oil price rallied above US$74 a barrel, after rising for its fifth week to its highest level since October 2018. 
• Gold rose 0.2% and the iron ore price rose 0.4% to $214. 

Trading Ideas: 

• Aeris Resources Ltd (ASX:AIS) is a Bell Potter BUY stock, with an upgraded price target to $23.50. 
• Resolute Mining (ASX:RSG), Mincor Resources (ASX:MCR) and Galan Lithium (ASX:GLN) are all giving off bullish charting signals according to Trading Central. 

With the end of financial year just days away, many investors are rebalancing their portfolios. Temporary setbacks for select stocks create opportunities. Plus, an agricultural stock to consider following a rise in almond demand. 
In this week’s wrap, Jessica covers: 

• (0:28) The Tech sector erasing its yearly loss, rising 3.8%
• (1:00) Why investors are rushing back into Afterpay (ASX:APT)
• (2:08) Why ARB's (ASX:ARB) next results could be strong
• (3:08) One of 2021’s greats, Codan (ASX:CDA) falling 8% on profit taking
• (4:00) Tapping into rising demand: the case for Select Harvests (ASX:SHV)

US equities rose overnight after President Joe Biden settled on an infrastructure deal, which is to include $579 billion in spending. All three US equity benchmarks closed higher.  

Yesterday, the ASX200 closed in the red, down 23 points, in a session where Woolworths (ASX:WOW) demerged from Endeavour Group (ASX:EDV) who own liquor chains Dan Murphy’s and BWS.

However, following the positive night in the US, the Aussie share market is set to open 0.7% higher. 

What to watch today:

• Travel companies as they continue to underperform due to the current uncertainly amid rising COVID-19 cases in NSW. Premier Gladys Berejiklian reintroduced restrictions this week, and Queensland has shut their border to NSW. So keep an eye on travels stocks such as Flight Centre (ASX:FLT), as well as Qantas (ASX:QAN) which was down almost 2% yesterday. 
• The gold price dipped 0.2% as the mixed Fed outlook puts investors on edge, copper was also down 0.2%, and iron ore is trading 0.02% lower. 
• The oil price however, pushed higher, up 0.3%, so watch energy producers such as Woodside Petroleum (ASX:WPL) and Santos (ASX:STO).  
• The most traded stocks by Bell Direct clients yesterday were Woolworths (ASX:WOW), Afterpay (ASX:APT) and CSL Limited (ASX:CSL). 

Trading ideas:

• Bell Potter have reiterated their BUY recommendation on Acrow Formwork and Construction Services (ASX:ACF), with an increased price target at $0.46. Bell Potter’s positive view towards ACF is based on their leverage to civil infrastructure markets and their transition away from the commoditised residential scaffolding market.
• Bell Potter have also initiated Tulla Resources (ASX:TUL) as a Speculative BUY. They are a gold development and mineral exploration company. TUL closed yesterday at $0.46 implying 97.8% share price growth. 
• Kogan (ASX:KGN), Appen (ASX:APX) and Alcidion Group (ASX:ALC) are all giving off bullish charting signals according to Trading Central. 

Yesterday, the Aussie share market fell 0.6% to about 7,299 points. 

Today, the Aussie share market looks set to fall again, with the futures suggesting the market will open 0.4% lower. This comes as NSW COVID-19 cases continuing to rise and the enforcement of new restrictions taking place, with the potential for further restrictions to be set in place in today’s update. 

What to watch:

• Following New Zealand enforcing a 72 hour pause on the NSW/ New Zealand travel bubble, Air New Zealand (ASX:AIZ) shares fell 1.7% and Sydney Airport (ASX:SYD) shares fell 2.2%. 
• Oil is holding at its record of US$73 a barrel, as US supplies tightened and the US dollar retreated, making it less expensive for buyers holding other currencies. 
• While rate hike concerns were eased by the US Fed yesterday, it wasn’t enough to lift the Gold price, which trades slightly lower, about 0.1%. 
• The iron ore price is trading higher approximately 0.2%. 
• The most traded stocks by Bell Direct clients and advised clients were Commonwealth Bank (ASX:CBA) and ANZ Bank (ASX:ANZ). Bell Direct clients also traded TechnologyOne (ASX:TNE).

Trading ideas:

• Bell Potter have a BUY rating on Adacel Technologies (ASX:ADA) with a price target of $1.25. ADA is a global technology company that develops and implements air traffic management systems and air traffic control stimulation. ADA closed up about 4% yesterday, which implies 37% share price growth. 
• Bell Potter also have a BUY rating on Australia’s leading avocado grower, Costa Group Holdings (ASX:CGC) with a price target of $4.30. 
• K-TIG (ASX:KTG), Osteopore (ASX:OSX) and Compumedics (ASX:CMP) are all giving off bullish charting signals according to Trading Central.

US equities rose overnight, with all three indices closing with gains. 

However, the Aussie share market is set for a flat start, with the futures suggesting the market will fall 0.1%.

What to watch today: 

• As NSW COVID-19 cases rise, restrictions are likely to remain in place until the 30th June. The travel bubble between New Zealand and NSW has been put on pause for 72 hours. Watch Sydney Airport (ASX:SYD) and Air New Zealand (ASX:AIZ). 
• Uranium stocks are in the limelight as Prime Minister Scott Morrison lays the groundwork for a nuclear energy election plan. Keep an eye on Paladin Energy (ASX:PDN), Boss Energy (ASX:BOE) and Deep Yellow (ASX:DYL). 
• The oil price is holding at US$73.00 a barrel, at its highest level in 3 years. 
• Copper holds steady after a volatile week last week, after falling 7%. 
• The iron ore price gained 0.3%. 

Trading Ideas: 

• Propel Funeral Partners (ASX:PFP) was upgraded as a Bell Potter BUY with a new $4.25 target, implying a 13% share price growth in a year.
• West African Resources (ASX:WAF), Emeco Holdings (ASX:EHL) and Senex Energy (ASX:SXY) are all giving off bullish charting signals according to Trading Central. 

The Aussie share market is set to open higher, with the futures suggesting the market will rise 1.2%.

What to watch today: 

• NSW has abolished stamp duty costs on electric vehicles (EVs) in a bid to boost EV sales, as part of handing down its state budget today. All eyes will be on companies involved in lithium production, including Galaxy Resources (ASX:GXY), Pilbara (ASX:PLS) and Lake Resources (ASX:LKE).
• Victoria has invested $5 million into Australia’s first locally manufactured mRNA vaccine. All eyes on CSL Limited (ASX:CSL). 
• The oil price rose above US$73.00 a barrel overnight. 
• The copper price rebounded 1.4% on Monday. 
• The iron ore price last traded at US$217.00 after falling 1.6%. 

Trading Ideas: 

• Bega Cheese (ASX:BGA) was reiterated as a Bell Potter BUY with a $7.35 target, implying 21% share price growth in a year. 
• Oneview Healthcare (ASX:ONE), Caravel Minerals (ASX:CVV) and Alcidion (ASX:ALC) are all giving off bullish charting signals according to Trading Central. 

The Aussie share market is set to open lower, with the futures suggesting the market will fall 1.5%. 

What to watch today: 

• Australian Retail sales data is out today for May. 
• Today marks the 8th last trading day before the EOFY. 
• Lumber prices hit a record high in May of US$1,700 per thousand board feet. Watch lumber and wood producers, including Big River Industries (ASX:BRI), Wesfarmers (ASX:WES) and Midway (ASX:MWY). 
• The oil price holds at US$71.84, up by 0.3%. 
• The iron ore price fell 1.6% and trades at US$217. 
• The copper price fell to a two month low, losing 1.2% and falling 7% over the week, as China is expected to sell their reserves in copper, aluminum and zinc. 
• Most traded stocks by Bell Direct clients yesterday: Galaxy Resources (ASX:GXY) and Chalice Mining (ASX:CHN).  

Trading Ideas: 

• Avita Therapeutics (ASX:AVH) was reiterated as a Bell Potter BUY with a $9.80 target, implying 75% share price growth in a year. 
• Bubs Australia (ASX:BUB), Xero (ASX:XRO) and AMP (ASX:AMP) are all giving off bullish charting signals according to Trading Central. 

The Aussie share market smashed another record high this Wednesday, hitting 7,406 points. With a bullish outlook for the US economy, and better than expected Australian employment data, it's no wonder we're seeing high after high after high.

In this week’s wrap, Jessica covers: 
- (0:32) The eight big stock movers of the week
- (1:10) What's driving markets
- (2:15) Three technical indicators that suggest the market rally is likely to continue
- (2:42) Trading volumes hitting an 18-year low as caution sets in
- (3:54) Agriculture: the next big trading theme?
- (5:45) Two key economic data points out next week

Overnight US tech stocks claimed back some lost territory following a two day sell off.

This morning the Aussie share market is eyeing a positive day, with the futures suggesting a 0.5% lift, which means the market is on track for its 6th weekly gain. 

What to watch today: 

• Traders and investors continue to readjust their portfolios with 9 more trading days until the EOFY. 
• Today tech stocks will likely rally higher following the Nasdaq’s 0.9% gain overnight.
• Altium (ASX:ALU) provided a trading update and reiterated its FY21 guidance. Bell Potter have a HOLD recommendation on ALU, with a $37.50 price target. 
• Sydney Airport (ASX:SYD) provided a Traffic update for May, noting 1.4 million passengers passed through its airport. Morgan Stanley reiterated (ASX:SYD) as a BUY stock yesterday. 
• The oil price fell slightly from its multi-year high, trading at US$71.00. 
• The iron ore price eased 2.3% lower from its record high and now trades at US$217.00. 
• The most traded stocks by Bell Direct clients yesterday: BrainChip (ASX:BRN) and Nuix (ASX:NXL). 

Trading Ideas: 

• Cluey (ASX:CLU) was reiterated as a Bell Potter Speculative BUY with a $1.70 target, expecting 76% share price growth in a year.
• Money3 Corporation (ASX:MNY) was initiated as a Bell Potter BUY with a $3.70 target. 
• Lake Resources (ASX:LKE), Bigtincan (ASX:BTH) and Polynovo (ASX:PNV) are all giving off bullish charting signals according to Trading Central.