Good morning,

One of the most useful information feeds these days is twitter..I have to confess I am a recent convert but only in a small way…there is one I follow zero hedge which is fabulous for rumours and the truth..watching the feed as I drove to work today was instructive..more rumours that the IMF will ride to the rescue got the US markets all bullish and 10 minutes later, as predicted on the twitter feed, the official denied the rumours and back it went..You can understand how the average punter has lost faith with the share market recently..momentum algo trading is running the show..according to one report I read ,in the last week Americans pulled the most money out of the stock market since the US credit downgrade…and yet it still goes up!!!

Back in ‘Zombieland’ (or the Euro Zone as it is usually known),hostilities have broken out along traditional lines..The Germans want to take over Europe, whilst the French have surrendered and of course the UK is fighting with everyone! Moves by the Brussels mandarins to curb the City of London will be ‘fought on the beaches ,they will never surrender’..so what can come out of the latest meeting …probably more statements and plans but this will continue to run and run!!

In our market yesterday’s GDP figure was a positive but we are still waiting for the Penguins to jump with regards rate cuts…it’s a giant game of chicken while they work out whose turn is it to be the baddie this month….my money is on ANZ…must be their turn..I am sure they talk…anyway I continue to be bullish our market but the low volumes show how little people are interested in it now..$3.2bn yesterday..pretty pathetic not enough to pay brokers for their lunches..at least computers don’t need paying!!

On TV last night I talked about BHP which is quality…trading on a P/E of 8.9 and yielding around 3%… it is the core of any portfolio that wants to look East rather than North. Iron ore price has stabilised around $139 so that’s a positive.Oil at $100 and other metals holding up relatively well..it is a buy..choose a price you are happy with and lie in wait! Target on the upside is $40

BHP: CEO Kloppers has flagged the potential sale of the company’s lacklustre aluminium and nickel businesses in coming years as US$200bn of growth options in iron ore, copper, coking coal, potash and petroleum make them too small to keep.

Expect another quiet day today with limited volume again …we wait on ‘Zombieland’  as usual…SPI up 5..employment numbers the focus…

CORPORATE EVENTS

BOQ: AGM

CSL: Research and Development Day

WES: Investor Tour of WA Chem & Fertiliser Plant

ECONOMIC EVENTS

AU Employment Rate Nov (Survey: 5.2%)
US Consumer Credit (Survey: $7.000bn, Actual: $7.645bn)

 

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