Lunchtime ASX small cap wrap: Who’s got their salmon cannons ready today?

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Meet the latest viral meme – this guy putting salmon through a tube (called a ‘salmon cannon’) to fire upstream into a river.

But the tube is actually an innovation several years old used to transport fish between ponds and into new ones.

Don’t worry about the fish – they apparently don’t mind it. Where it has made an impact is in our own minds. Some are reflecting on our own existence:

We are all just helpless fish zooming through this tube called life

— Jules (@Julian_Epp) August 12, 2019

Others, with too much time on their hands, have reposted the video to any tune under the sun from Lady Gaga to Freddy Mercury.

We think it’s fair to say such music wouldn’t work if another mode of fish transport went viral – the helicopter drop. Ride of the Valkyries anyone?

Also going viral was ‘the inverted yield curve’ overnight (where the 10-year US treasury bond rate was lower than the 2-year rate). Each time this has happened since 1978, recessions have occurred within 22 months.

Wall Street was slammed overnight and our markets have followed suit. The ASX Small Ords has fallen 2.1 per cent to 2,806 and the ASX 200 has as well, to 6,460.

In economic data, despite 41,000 new jobs being created, headline unemployment rose from 5.2 per cent to 5.3 per cent. Seasonally adjusted it is unchanged.

Perhaps investors listened to Hong Kong based Rabo Research strategist Michael Every who called this “the marvellous magical piece of meaningless whimsy”. He noted Australia’s population grows by that much through immigration; we are apparently standing still.

Going up

K2Fly (ASX: K2F) jumped 13 per cent after winning Glencore as a client for its software.

Rent.com.au (ASX: RNT) also climbed 13 per cent after announcing it had hit a milestone of 600,000 profiles.

Here are the best performing ASX small cap stocks at lunchtime, Thursday August 15:

Swipe or scroll to reveal the full table. Click headings to sort

Going down

Serbian focused gold miner Raiden Resources (ASX: RDN) fell 18 per cent this morning. Despite forming a drilling target, it continues target generation and only starts drilling within 6-12 months afterwards.

Here are the worst performing ASX small cap stocks at lunchtime, Thursday August 15:

Swipe or scroll to reveal the full table. Click headings to sort

More from Michael Every

If you think the trade war’s to blame for the stock market rout, here’s Every’s take on that for you:

“Well, only in the same way you can blame the stairs for the heart attack of a morbidly-obese, drug-addict, alcoholic chain-smoker who tries to walk up to their bedroom.

“Yes, the proximate cause was the stairs; yes, living in a bungalow might have been better; but is blame really being apportioned correctly?”

The point he is making is that the trade war is just a stair in the broader house that is US-China relations. Another thing he called a stair was the Federal Reserve, calling on Donald Trump to blame someone else for the market fall.

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