Good morning,

Yesterday saw our market pull back 20 points and today we may see a similar apathy…not much to get excited about in the broader market but plenty going on in some sectors.Oil is one that is very much in teh spotlight at the moment and Shale Oil especially..Canning Basin stocks are going mad..BRU hit 3.34 yesterday with SXY were up to nearly 1.20 and little old COE which I recommended at 42 cents back in February hit 61..wow!!all good stuff..whilst the leaders languish and no one cares, the small and mid caps are showing pockets of stunning performance..for those of you who missed out on some of these, I have been looking at another one PSA..it has a enviably bad track record to say the least but somehow it has managed to gather $40m in cash and a market cap of not much more..They are looking at gas developments in the US and have started a drill program..which of course does deplete the cash a little but any success will be rewarded..high risk but could see 50% gain in a month or two especially as the oil price continues to holds up…I have bought a few already but one for the punters perhaps..

The UK was on hold last night as George Osbourne handed down his budget which takes from the rich and then gives to the…..rich!

Existing US home sales hold near two year high so that’s good news..the World’s biggest (still) economy continues to pick up and sustain a rally…election year optimism abounds..and US stores looking at selling on line outside US..sorry MYR and DJS your job is getting harder and harder.

Other things to ponder

1.NSW most wanted man has been caught and it’s not a sales assistant at a department store!Or Clive Palmer!

2.Chelsea go down 2-1 to Man City-bummer.

3.Avoid DJs and any retail stocks like the plague…no reason to be there..if you are look to exit..except maybe Billabong which I think could be attractive..at the right price..

4. Federal Reserve Chairman Ben S. Bernanke told Congress that higher energy prices may weaken the U.S. economy by sapping consumer spending. The national average price of a gallon of gasoline rose to $3.86 yesterday from $3.28 on Jan. 1, according to the American Automobile Association.

5. HSBC flash China manufacturing today..may not look that flash!

6.DJs lose 11% yesterday and discover the internet is killing their business..and people say they have a huge property portfolio which underpins their share price..trouble is who would you sell it to..Myer?  don’t think so!!!Maybe more a liability than asset…

7.Good to see the analysts cutting DJs to a sell after they have fallen 11%..I mean why do these people get a salary!!

8.Leo Fender died today…so much pleasure given to so many people.

Thought for the day Senator Keith Ellison thinks the Nazis attacked Pearl Harbour..and these guys get elected..

O’REILLY: Congressman, the reason we like you as a guest is because you’re an honest man, But I will point to history. I will point to history. The same mindset was taken when dealing with Nazi Germany. We’re not going to go in aggressive action. We don’t believe they’re going to do this. We don’t believe they’re going to do that. And they absolutely did everything. So I think you’ve got to learn from history.

ELLISON: Let me tell you in World War II, in World War II they attacked Pearl Harbor.

Enclosed is the daily report by our wonderful research providers Lonsec..they do it so much better than me!

On radio and TV today..I am a true media guru!Not!

Clarence

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