What Worked Australia - 04 Apr 2017 - Some short term reversal, and Low Div names rebound

What Worked

This week was all about a reversal in short term gains (and losses), as one week and one month momentum signals saw highly negative numbers. Names like Galaxy Resources (GXY, +4.4%), Bellamy’s Australia (BAL, +4.8%) and OZ Minerals (OZL, +7.8%) where among the lowest performing names last week that rebounded very strongly this week, while the other end of the market saw the better performing names from last week come off. This group saw Aconex (ACX, -1.5%), Mantra Group (MTR, -0.3%) and Seven West Media (SWM, -7.6%) all trim back gains made over the last week, and indeed the last month.

Dividend Yield as a signal was also hurt this week, but not due to a sell-off in the higher yielding names, but rather some buying into the lower yielding names. Among these were Orocobre (ORE, +4.7%), Infinigen Energy (IFN, +4.1%) and Nanosonics (NAN, +1.3%) all posting higher, and among the lowest yield names in the market.

Who Moved

Volumes backed off yet again this week, with only 5 names moving on higher than normal volumes. On the positive side, Whitehaven Coal (WHC, +11.0%), Spark New Zealand (SPK, +5.3%) and Fairfax Media (FXJ, +3.4%) all finishing up, while the only name down on volume was Fletcher Building Limited (FBU, -1.3%).

Summary

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