Last week, I said the US Dollar Index [TVC:DXY] looked ready for blast off, so gold, silver, and Bitcoin could be in for some heat.
That has panned out as expected this week, with the US Dollar up 1% to a one-year high of 101.60, while gold, silver and Bitcoin all fell sharply.
Other commodities have been caught up in the selling, with copper down nearly 7% over the week.
The music has stopped on the Aussie dollar rally, and it looks like it has further to fall.
US stocks are struggling to hold at lofty levels. Charlie and I have a look at a few of the big names to show you that there is still some bloodletting going on beneath the surface.
Tax-loss selling has also been hitting underperformers in Australia heavily.
Let’s hope we see a bounce next week as July gets underway.
In general, it’s been a very tough environment to make much money. The S&P/ASX 200 [ASX:XJO] remains firmly stuck in its range of the past year.
Many of the former market darlings have crashed, and it seems like the banks and large resources are the only things holding the market up.
But the property market is looking shaky, so I think it’s only a matter of time until the banks come under serious selling pressure.
Judo Capital Holdings [ASX:JDO] could be a canary in the coalmine, with the stock dumping 40% in a day on the back of rising bad debts.
Capital preservation seems to be the name of the game for now. But with just two days left to access the CGT discount and serious tax-loss selling driving some stocks into deep value territory, it may be time for the brave to step up.
Charlie and I delve into all of the issues above.
If you are considering purchasing a stock or have some that you aren’t sure what to do with, be sure to check out this presentation about a little community I’m developing called Murray’s Trading Room.
I look at stocks suggested by members every week for an hour at 11am. Members can watch the video recording whenever they like. I have discovered some great stocks already by doing it.
Closing Bell
Regards,
Murray Dawes,
Retirement Trader, International Stock Trader and
Murray’s Trading Room
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