After 6 sessions of losses we rebounded yesterday in style..gotta feel for those short coverers!!..Rumours of the IMF bailing out our Italian friends and a good ‘Black Friday’ retail spend in the US banished the clouds. Last night’s moves will further bring out ‘Mr Blue Sky’ so expect another jump on the open. Volume was pathetic yesterday with only $3.8bn traded which is not good for a move of that size..most players are weary from the constant trade by twitter rumour and investors and Instos have planted themselves firmly in the spectator camp. Certainly can’t blame them. It’s a jungle out there…I have been bullish ,too bullish and it looks like the German Grinch stole the rally, but the moves overnight suggest there is life in the old dog yet..We may push up a bit higher but lots to worry about in Bond Auction land this week and US Non Farm Payrolls on Friday.
The mid-year Financials review from the ‘Black Swan’ will be poured over, with the Nirvana forecast of a surplus in 12/13 the holy grail.
Expect another day in the green as it appears we are leading the World! Once again though conviction and confidence (Volumes) will be thin.
Last night I went on TV and said the AUN deal will be ok’ed or not by the ACCC..of course little did I know that they were going to announce another delay as more submissions from Foxtel are sought.I view this as positive although it pushes out the timing yet again..so in no hurry!
The SPI was only 26 points higher but expect better from it..should try harder…once again though nerves will be about.
Big Stocks will continue to be the focus with the BHP,RIO and the Four Banks in demand,plus some of the Goldies perhaps…
I reckon 4150 on the index is doable provided the Germans don’t get the bucket of water out again..At 4150 time to reassess.
ALZ: NSW Resi Tour
BUILD: AU New Home Sales Oct
CPB: 1H Result
MVN: 1H Result
US New Home Sales (Survey: 315K, Actual: 307K)