NAB – Profit Hit

Posted on | by Leon Hinde

We expect National Australia Bank to run into selling pressure at $16.50. We favour the short side of this trade.

Today NAB announced first-half earnings will take a $1.14 billion after-tax hit – even before the impact of the coronavirus is accounted for.

NAB said investors will have to wait until it reports its half-year numbers on May 7 to see the impact of the pandemic on its “earnings and balance sheet including provisions, combined with capital and dividend implications”.

BBOZ – A Market Hedge

Posted on | by Leon Hinde

Betashares Australian Equities is the Australian Equities Strong Bear Hedge Fund. The inverse ETF provides an approach to profit from, or protect against, a declining Australian sharemarket.

The ETF is designed to generate magnified positive returns when the market goes down (and vice versa) if the market was to rise.

As a technical reference point, we’re increasing our market hedging whilst the XJO index remains below the 5533 level.

The inverse BBOZ ETF will likely find support should the XJO continue to struggle below the 5533 resistance.