Good morning,

Last night markets gave up ground..the surprising thing was how strong we were yesterday given the region was in a slump with Chinese markets leading the way. Me thinks that the end of quarter window dressing may have had something to do with it..The breach of 4300 was a positive but it has done it before then retreated..hopefully this is different this time..we will see…’Swanny’ is already softening us up for a horror budget(sold down the river perhaps) and more on this in the coming weeks…carbon tax uncertainty coming plus MRRT won’t help our sentiment but the big key is the AUD..if it trends lower , the market will look attractive..however ASX 200 needs something special to push it higher or else we will have an Easter hangover…

I believe that at the moment we are all waiting for a pullback to buy and that the market will not oblige and as a result there will be a grudging investor base trying to get into the market…usually when all are in is when there is the maximum amount of risk…so at the moment the market is well underpinned..

News today that Black Rock one of the World’s biggest money managers are reducing their BHP holdings is testament to the ‘dogginess’ of BHP in recent months..I commend Julia for trying to spread the resource boom around and wish that BHP would do the same..they are committed to huge capital expenditure and the shareholders do NOT seem to see any benefit to the boom in profits…so what’s the point in owning the shares I hear you say…well I hope management are listening to their investor base!

Another Shocker from LEI what’s new and BOQ should be sold I believe…rights issue is dilutive and shareholders should sell existing shares to take up rights

Expect window dressing to continue to hold the market up..

On the radio today and for those who caught my TV appearance last night I was talking KAR…drilling about to start..still like Shale stocks like BRU OBL NSE etc especially as they are getting cheaper!!

Clarence

xxx

Any financial product advice contained in this email is general financial product advice only and does not take into account any one person’s objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.