The ASX200 lost a little ground on Thursday, but is up three quarters of a percent over five days and is holding above 7300 points. This remains above the market’s pre Covid peak and represents the returning strength of the economy, although recent lockdowns in Victoria and three community Covid cases in NSW remind investors that downside risks could return.

While cash levels remain at close to record highs, indicating nervousness on behalf of investors, any fall in popular stocks can bring out the bargain hunters. Coles (COL) shares were a strong buy on Thursday when the company’s strategy update disappointed the market and the shares fell nearly 4.5%. At $16.29 they remain above their 52-week low, reached in late February, and are largely flat over twelve months. Woolworths (WOW) were largely moved and are up nearly 20% over the year.

CSL (CSL) fell below $250 as recently as March, at which point it was a strong buy, but has rallied strongly since, closing Thursday at over $302. Investors were happy to take profits, which led to heavy selling on nabtrade, although the stock remains well off its pre Covid highs of $350.

The action in Coles and CSL was enough to push investor favourites nab (NAB) and Fortescue Metals (FMG) off the top spot on Thursday. Bank shares continue to be subject to widespread profit taking, with nab leading, and Bank of Queensland (BOQ) ahead of Commonwealth Bank (CBA). CBA has consolidated its position above $100, surging to $105.91, while BOQ rose 3.3% on Thursday to close shortly off its 52-week high.

In the materials sector, FMG continues to attract traders and investors; Thursday’s 1.5% fall led to heavy buying. Gold miners suffered on the back of small falls in the gold price and the Fed’s interest rate outlook. Gold explorer and producer Northern Star (NST) lost 7.57% and was a strong buy; Newcrest Mining (NCM) suffered a smaller fall and was lower down the list while still a buy. BHP (BHP) and Rio Tinto (RIO) were also bought on slight weakness.

In the energy sector, Brent crude prices are closing on a multi-year high, leading to profit taking in Woodside Petroleum (WPL). In international markets, the ‘meme’ stocks continue to attract punters, with GameStop (GME.US) and AMC (AMC.US) Entertainment fans congregating on Reddit forums to talk up their favoured stocks, although Tesla (TSLA.US), led by the ultimate cult entrepreneur, has been mixed after falling from highs of $900 to around $600. The stock is still up 200% year on year following a 5:1 stock split and the largest ever inclusion in the S&P500. More conservative investors continue to buy the US listed Vanguard S&P500 ETF, and Amazon shares (AMZN.NAS), which are up a relatively modest 30% year on year and have largely tracked sideways since August.