Market Nerves Return This Week

Aussie stocks dropped two per cent this week, as US stocks flatlined.

Uncertainty remains high as we await a resolution in Iran. If the Strait of Hormuz remains closed for much longer, the market will get nervous about fuel and fertiliser supplies drying up.

I’m sure Trump is well aware of the precarious situation and would like to take his bat and ball home as soon as possible.

I don’t think it is worth trying to predict what will happen. I’m leaning towards things wrapping up soon (because they have to), but there’s no guarantee.

The weak close for the S&P/ASX 200 [ASX:XJO] has confirmed a weekly sell signal. While the S&P 500 looks strong.

I’m not sure I trust the big rally we have witnessed in the States. As I said last week, I reckon it was a short squeeze that may falter soon.

But now that the rally has taken place, there’s no excuse to be bearish.

So all up, confusion reigns.

Charlie and I discuss a few results that have sparked some weakness in our market, with the implosion of Cochlear [ASX:COH] the standout.

It’s not often you see a multibillion-dollar stock crash 40% in a day.

Lynas Rare Earths [ASX:LYC] has also dropped sharply this week as its production disappointed. They mentioned high oil, gas, transport, and sulphuric acid prices as a headwind going forward.

To finish off today, we revisit my nemesis, Nuix [ASX:NXL]. They announced that the Federal Court has dismissed ASIC’s disclosure case against them.

But they may appeal, so it may be premature to dive in while the stock remains so weak. But there are signs of a bottoming process, so it is one to watch.