SML - Synlait Milk Ltd

[Beagle]

Fundamentally nothing has changed. This is still an excellent growth story. It was trading on big multiples and had got ahead of itself.

NZ dollar dropped below 73c to USD today. It will come under a lot of pressure with rising US interest rates and greater risk aversion. Helpful to SML as an exporter.

Looking increasingly likely to be the case. TA enthusiasts will have noted a clear break down through the 100 day MA in early Feb which has continued.
On the other hand no break down through the 100 day MA for ATM. These two have shown a less robust correlation in the last couple of months.
I agree its a good company and has very good long term prospects but I'm not going to fight the technical's in the new extreme market volatility environment we're in.
My mantra for dealing with extreme volatility and a probable secular bear market is if the tide's going out, I'm out. Too much hard work swimming against the tide so if FA and TA don't line up I'm out.