ASX Weekly Market Outlook and the Top Movers Last Week

Last week saw the All Ordinaries [ASX:XAO] buck the recent downtrend and return to the upside, gaining 82 points for the week to close out at 6,140 points on Friday.

After three weeks down a move to the upside is normal, but still not a sign that a bull pattern for the market is returning. Last week’s move took place on lower volume, which may indicate less commitment to the upside.

Source: Optuma

ASX outlook for the week ahead

The week coming may see a flat open. With the few weeks down leading into last week’s move up, it looks like some indecision is moving into the market.

National business and economic conditions have not improved much, so it is the weakest of positive signals. Overall, I still believe the outlook is bearish.

A closer look at the ASX

Moving into the stocks, The a2 Milk Company Ltd [ASX:A2M] gained 4.7% last week, while Abacus Property Group [ASX:ABP] and Harvey Norman Holdings Ltd [ASX:HVN] moved up 11.65% and 5.29% respectively.

On the downside, the market saw some declines for the week, with Chorus Ltd [ASX:CNU] falling back 5.16%.

While Evolution Mining Ltd [ASX:EVN] and Northern Star Resources Ltd [ASX:NST] fell away 8.33% and 8.41% respectively.

Looking at the sectors, all moved up this last week with the big movers being Utilities and Consumer Staples, moving up 3.51% and 3.49% respectively.

Along with Consumer Discretionary and Financials gaining 2.50% and 2.96% respectively.

A broader look at the ASX

In economic terms, it’s a grim time in Australia right now. No matter which way you cut it or who you speak to, things are not good.

Australia’s federal budget deficit is tipped to reach an extraordinary $200 billion.

As many people find themselves out of work and struggling, big social changes are setting in. People moving states to chase work, downgrading living arrangements, selling cars they can no longer afford…adapting basically.

It’s human nature.

To me, this presents an opportunity.

Warren Buffett is quoted as saying:

Opportunities come infrequently, when it rains gold put the bucket outside not the thimble.

With what is unfolding today I feel this quote can suit us all, now is a time to prepare for not only any potential fall, but the recovery that comes after.

Whatever goes up must come down and vice versa. So those that are educated, ready with capital, and have a plan may be best placed to make the most on the other side of this disaster.

Regards,

Carl Wittkopp,
For Money Morning

PS: Four Well-Positioned Small-Cap Stocks: These innovative Aussie companies are well placed to capitalise on post-lockdown megatrends. Click here to learn more.


Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

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