Between the Bells

The Aussie share market is set to extend last week’s advance and start the week higher, with the futures suggesting the market will lift 0.5% to 7,071 points. This takes the market just 1% away from the record set before the pandemic. 

What to watch today:

• The country’s leaders will be discussing today a reset of the vaccination program, which could lead to people aged over 50 being vaccinated sooner and further mass-vaccination sites opening.
• The oil price dipped, but still posted a gain for the week. This was driven by optimism over a recovery in demand.
• Gold miners like Newcrest Mining (ASX:NCM) and Northern Star Resources (ASX:NST) could start the week on a positive note after the Gold price pushed higher on Friday night.  
• Stocks going ex-dividend this week include mining company New Hope Group (ASX:NHC) and investment company Soul Pattinson (ASX:SOL). 
• The most traded stocks last Friday from our active trader desk, Bell Direct Advantage. They were Brainchip (ASX:BRN), Magnetite Mines (ASX:MGT), which both rose about 7% and Oneview (ASX:ONE), up about 2.5%. 

Trading ideas:

• Bell Potter has lifted its price target for Eagers Automotive (ASX:APE) to $16.50, previously $15.50. Bell Potter’s view is that a 2021 PE ratio in the mid to high teens is appropriate for what we can expect to be peak earnings for the company.
• Adairs (ASX:ADH), Medusa Mining (ASX:MML) and Beach Energy (ASX:BPT) are all giving off bullish charting signals according to Trading Central. 

The Aussie share market gained momentum this week, and is within a whisker of the February 2020 all-time high. Could the market hit a new high next week?
 
 In this week’s wrap, Jessica covers:  

• (0:38) The Tech sector's continued bounce back as bond yields fall
• (1:05) The trifecta of better than expected economic news
• (1:36) Mineral Resources (ASX:MIN) rising 10%, following iron ore & lithium boost
• (3:18) Why you should review your portfolio
• (4:16) A potential US pullback? What you need to know...
• (5:05) The hottest stocks this week for Bell Direct clients 

US stocks smashed records this morning. The Dow Jones closed over 34,000 points for the first time. The S&P500 was up 1.1% to another new record, while the Nasdaq lifted 1.3%, setting a new record high. 

What to watch today:

• The Aussie market is breathing down the neck of an all-time high - we’re 1.5% away. 
• Afterpay (ASX:APT) is seeing buy orders lining up. Zip (ASX:Z1P) shares are also likely to lift based off early buying, staging it for a rebound following its $400m capital raising.
• Iron ore giant, Fortescue Metals (ASX:FMG) is moving into the hydrogen sector, building a green-steel plant in Brazil, which will help FMG become carbon neutral by 2030.  So keep an eye on other hydrogen stocks like HZR, QEM, PRL  
• The iron ore price has risen back to a 9.5 year high. Keep an eye on Mineral Resources (ASX:MIN). 
• The most traded stocks from yesterday. For our active trader desk, Bell Direct Advantage they were Magnetite Mines (ASX:MGT) and Volt Resources (ASX:VRC). 

Trading ideas:

• Plenti Group Limited (ASX:PLT) was initiated as a Bell Potter Buy. 
• Access Innovation (ASX:AIM) was re-stamped as Bell Potter Buy. Bell Potter expects AIM shares to jump 47% to $1.35 in a year. 
• Sandfire Resources (ASX:SFR), Redbubble (ASX:RBL) and Calix (ASX:CXL) are all giving off bullish charting signals according to Trading Central. 

Aussie share market is in an uptrend, hitting a new 13 month high yesterday. All eyes will be on tech stocks today. 

What to watch today: 

• Zip (ASX:Z1P) is one to watch today as yesterday Citi stamped the stock as buy with a $11.30 target. The company entered into trading halt pending a capital raising.
• Qantas (ASX:QAN) to get back to 90% capacity in fourth quarter of this year, compared to 25% in mid-2020. Jetstar also reach 120% pre-COVID-19 Domestic Capacity - Qantas 107% in FY22. 
• Michael Hill (ASX:MHJ) looks set for a rally after reporting a shiny quarterly report – digital sales rose 69% and store sales rose 16%.
• 35,000 people are expected to have gained jobs last month, with unemployment expected to fall to 5.7%. 
• The most traded stocks from yesterday. For our active trader desk, Bell Direct Advantage they were: Brainchip (ASX:BRN), Insurance Australia Group (ASX:IAG) and IOU Pay (ASX:IOU)

Trading ideas:

• Mayne Pharma (ASX:MYX) was restamped as Bell Potter Buy with its shares expected to grow 29% to $0.56. 
• Synlait Milk (ASX:SM1) was upgraded by Bell Potter as a Buy. Bell Potter expects SM1 shares to jump 27% to $4.10, with sour sales behind it and the infant formula business set for growth. 
• Motorcycle Holdings (ASX:MTO), Pro Mediucs (ASX:PME) and ALS (ASX:ALQ) are all giving off bullish charting signals according to Trading Central. 

US stocks closed mostly higher as bond yields fell, which is supportive of equities. The Aussie market is expected to lift 0.3% or 19 points at the open. 

What to watch today: 

• Tech stocks are expected to shine the most as bonds yield fell from their 12-month high to 1.71%, making tech stocks look far more attractive.
• Zip (ASX:Z1P) will be traded a lot today, as it jumped 17% yesterday after reporting another strong quarter – with revenue, merchants and customers all rising by 10%-20%. 
• Afterpay (ASX:APT) is another one to watch, rising 3% yesterday and is likely to lift further in the short term. 
• Consumer confidence is released for April which is expected to be positive as employment is at pre-pandemic levels. 
• The most traded stocks from yesterday . For our active trader desk, Bell Direct Advantage they were: Magnetite Mines (ASX:MGT), Delorean (ASX:DEL) and 88 Energy (ASX:88E). 

Trading ideas:

• Online luxury fashion website Cettire (ASX:CTT) which sells designer brands like Givenchy, Chanel and Valentino was initiated as a Bell Potter Buy with a $1.90 target. 
• The rival company to NBN, Uniti Group (ASX:UWL) had it Buy rating upgraded by Bell Potter, with a new $2.85 target as its network revenue is likely to increase. 
• Uniti Group (ASX:UWL), SenSen Network (ASX:SNS) and Pushpay Holdings (ASX:PPH) are all giving off bullish charting signals according to Trading Central. 

Vaccine talks will dominate local headlines today for two reasons - the Federal government has taken the J&J vaccine off the table and ScoMo has said that Aussies will likely not receive a vaccine by the end of year. 

This means travel and tourism stocks will be back in focus, in particular Qantas (ASX:QAN), as the company planned to initially resume international flights in October as Australians were initially set to be vaccinated by then. 

What to watch today:  

• The Aussie market is expected to rise 0.2% if the futures are correct. 
• New home sales and business confidence data out today. 
• Keep an eye on the most traded stocks from yesterday. For our active trader desk, Bell Direct Advantage they were: Delorean (ASX:DEL) which listed on the ASX on Monday, and Digital Wine Ventures (ASX:DW8). 

Trading ideas:

• The a2Milk Company (ASX:A2M) was upgraded from a Hold to a Buy with an increased price target of $9.50 as China distribution is showing strong signs of early life. 
• Macquarie rated Dexus (ASX:DXS) as a Buy with a $10.33 target and an estimated dividend yield of 4.53%. 
• Galan Lithium (ASX:GLN), Mach7 Technologies (ASX:M7T), People Infrastructure (ASX:PPE) are all giving off bullish charting signals according to Trading Central. 

The Aussie share market is set to start the week higher. The futures are suggesting a gain of 0.1% which will rub out Friday’s fall. 

US equities closed at new records at the weekend with almost half of the US population receiving their first vaccine.

What to watch today:

• Vaccine news – Pressure has been put on ScoMo for when Australians will receive their first dose. 
• Economic news: New home sales data, Business and Consumer Confidence data and on Thursday, employment data is released for March. 
• Quarterly balances will be taking place - investors and fund managers will be buying heavily back into stocks that are depressed – like tech – given bond yields have eased from their year high.  
• Stocks that closed in bullish breakouts and made sizeable gains last week: EML Payments (ASX:EML), Afterpay (ASX:APT) and Imugene (ASX:IMU).  
• Iron ore stocks will be back in focus as one of the most traded stocks across our entire business last week was BHP. 
• The most traded stocks from Friday for our active trader desk, Bell Direct Advantage. They were Oneview Healthcare (ASX:ONE) Greenland Minerals (ASX:GGG) & 88 Energy (ASX:88E).

Trading ideas:

• Immutep (ASX:IMM) was re-stamped as a Speculative Buy with an increased price target of $0.85 after the US FDA fast tracked its lead drug as a treatment for head and neck cancer.
• Whitehaven Coal (ASX:WHC) had its Buy rating increased, with Bell Potter raising its target to $2.35 as the thermal coal price strengthened in the March quarter.
• Gascoyne (ASX:GCY), Pact Group (ASX:PGH) and Proteomics International (ASX:PIQ) are all giving off bullish charting signals according to Trading Central. 

After three straight weeks of growth, the Aussie share market hit its highest level in 13 months.
 
 In this week’s wrap, Jessica covers:  

• (0:40) Why the bulls are back
• (1:05) The Tech sector's 7% rise; Afterpay (ASX:APT) & Zip (ASX:Z1P) post strong gains
• (1:30) Why bank stocks got a boost this week
• (2:03) Whether EML Payments (ASX:EML) and Afterpay (ASX:APT) have more room to grow
• (3:50) The top All Ords performer: Imugene (ASX:IMU) rocketing 33%
• (4:30) Three key focus areas for the week ahead 

The Aussie share market is in a bullish breakout uptrend, just a 3% puff away from the record high – hit in February 2020. 

Overnight US tech stocks put their foot on the gas – with investors buying back into stay at home economy stocks . 

What to watch today: 

1. Local stay at home economy tech stocks are set to thrive. Keep a watch on EML Payments (ASX:EML) which has already gained 17% this week and Afterpay (ASX:APT) which has lifted 14%.
2. Gold trades at a one-month high. Keep an eye on Gold stocks like Silver Lake Resources (ASX:SLR), Northern Star (ASX:NST) and Ramelius Resources (ASX:RMS).
3. Services Sector index data is out – tipped to show the sector grew in March as restrictions continued to ease and employment is a pre-COVID-19 levels.
4. Building permits are out – so keep your eye on building and construction stocks that are trading at 12 month highs like BKW, CSR, ABC and the like 
5. The RBA will realise their financial stability review report. 
6. Keep an eye on the most traded stocks from yesterday for our active trader desk, Bell Direct Advantage. They were: 88 Energy (ASX:88E), Province Resources (ASX:PRL) and Red Sky Energy (ASX:ROG).

Trading ideas: 

• Domino's Pizza (ASX:DMP) was re-stamped as a Bell Potter Buy with a $122 target, as German sales ramped up, while Bell Potter also sees Japan’s sales growing fuelled by half price takeaway orders and no minimum deliveries. 

• Bullish charting signals have been identified in Afterpay (ASX:APT), Emeco (ASX:EHL) and Silver Lake Resource (ASX:SLR) according to Trading Central.

Yesterday the Aussie share market rose for the 4th day, closing at its highest level since the pandemic – 6,928 points. Today, the futures are suggesting we’ll get closer to that all-time high of over 7,000 points, and lift 0.5%.

Of significance overnight, the US Federal Reserve reflected on the improved economic outlook, and also that the US Central Bank would continue to buy bonds until employment was back to normal. 

What to watch today  

• International flights return to Melbourne for the first time in two months – returning Victorians home from overseas. The biggest carrier Qantas (ASX:QAN) is in an uptrend on the back of the NZ-Australia bubble. Qantas expects international flights to reopen by the year end. 
• Australia’s vaccination rollout – 857,200 people have been vaccinated – ScoMo wants 25 million Aussies to have had their first jab by October. 
• Commodity stocks – will be back in focus. China wants to raise its use of scrap steel in the steelmaking process, to cut its imported iron ore. So look at Steel stocks – given iron ore stocks to face pressure. Keep an eye on Sims Metal Management (ASX:SGM) and BlueScope Steel (ASX:BSL). 
• Companies going ex-dividend today, including ARB (ASX:ARB) and Universe Store (ASX:UNI). 

Trading ideas:

• Afterpay (ASX:APT) had its Buy rating reiterated by Morgan Stanley with a $149 target, as it’s on track to expand in Europe and Asia while its app downloads tripled in the US in March. 
• Bell Potter reiterated its Buy call on cloud company Rhipe (ASX:RHP) with a $2.50 target, as it’s diversified its business away from Microsoft while going into cyber security. 

Shiro Holdings (ASX:SHM), Asian Medusa Mining (ASX:MML) and Pinnacle Investment Management (ASX:PNI) are all giving off bullish charting signals according to Trading Central.