ASX 200 Finds Buyers on Dips Still 

• ASX 200 rallies after initial drop. 

• Lack of economic announcements give stock markets breathing room. 

• Commodity markets continue to show signs of life. 

During the day on Monday, the Australian Stock Exchange 200 pulled back just a bit during the early hours, only to turn around and show signs of life. This makes a certain amount of sense as the global equity markets all seem to be bullish, and of course the fact that there were no major announcements during the trading session gave people a bit of an excuse to start buying risk appetite related assets such as stocks and indices in commodity related markets. 

It’s worth noting that the ASX 200 has been strong over the longer term, but recently has been going back and forth in order to show a bit of digestion of those gains. From a technical analysis standpoint, there is plenty of reasons to think that we are in an uptrend, and perhaps even in a very strong one in the longer term, so it makes a certain amount of sense that buyers continue to look for value. 

BHP Group Ltd (BHP) 

BHP rallied 63 basis points during the trading session, as the market is looking at commodities as a potential buying opportunity. All things being equal, it should be noted that the BHP stock has risen the 16.67% over the last month, although it should be said that over the last year it is gained only 2.02%, suggesting that we are in the midst of some type of major correction and recovery. 

With central banks around the world looking to loosen monetary policy, it does make sense that the materials giant would benefit, as traders expect more upward pressure in commodity markets, as demand will come into the picture, as well as inflationary pressure keeps the market somewhat elevated. 

Westpac Banking Corporation (WBC) 

Westpac Banking Corporation gaining 2.12% during the trading session, as risk appetite has traders looking at financials as well, perhaps with the idea that an expanding commodity market also means that we could have an expanding Asian economy, which WBC will benefit from via loans. Interest rates continue to be favorable as far as the spread is concerned, so it does make a certain amount of sense that this market continues to see a lot of interest. 

It’s worth noting that over the last month, WBC is still down 4.11%, but over the last year is up a massive 43.56%, showing just how strong financials have been in Oz over the last year, and more likely than not will continue to attract a certain amount of attention. 

Brambles Limited (BXB) 

Brambles Limited gained 59 basis points during the trading session and is up 1.18% over the last month. It’s worth noting that the industrial giant is up a whopping 32.37% over the last year, as it looks like the market is likely to continue to see a lot of noise, not only in this stock, but many others. Nonetheless, this is obviously in a massive uptrend, and it’s very unlikely that it changes without some type of fundamental reason. Ultimately, this is a market that has been rallying for some time, and it’s likely that the recent action is more or less due to digesting some of the massive gains that this market has seen recently. 

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