Good morning,

Once again the markets seized on any good news and rallied hard..comments from Fed members,Yellen and Dudley, that interest rates will stay low until 2014 were enough to send punters flocking back to risk assets. News out of Europe was also mildly positive with Industrial production rising 0.5% against forecast of a monthly decline. So even bad initial jobless claims couldn’t derail the rally with the Dow up 180 points Gold soaring 20 bucks as the dollar fell and the Aussie pushing up above 104 again.SPI up 27 odd so we will push up above 4300 again and maybe towards the 4350 level…

With all this good news it would be easy to get carried away..not me…I remain a little wary ..we have some serious issues still in Europe which will not be helped by forthcoming elections so expect nerves to return..the market is in the 4200-4370 range…trade accordingly..I am still of the belief that we have seen the best of the market for the next quarter and things will get harder from here..I am a sell(at least some) in May and go away man..certainly it will be a good idea to take some money off the table if we get above 4350..Zombieland nerves WILL return..

But..

Casinos seem to be in favour at the moment and it may be worth looking at Echo Entertainment (EGP) with rumours that HK based Genting are having a butchers…

In other gambling news Big James has spent another 133m bucks upping his stake in Crown..it’s all happening!

I have also enclosed one for the Punters..ERA..been a complete disaster but starting to look attractive..needs to have a spell of dry weather but recent announcements have been positive…BUY around 1.27/1.28

Short covering today especially in miners may help market up 40 or so…volatility is back(Computers are back)..at least at the start of the day..not much intra day as volumes remain pitiful!

Things of Note

1.Lots of Chinese data today with real GDP, Retail sales and Industrial Production numbers..also US CPI tonight as well..Mid Morning will be watched closely.

2.Lynas has had a win in its battle in Malaysia after a court dismissed an attempt to delay the operation.Will help the price..

3.Separately, data for the euro zone showed industrial production rose 0.5% in February, and fell 1.8% on an annual basis. Economists surveyed had forecast a 0.2% monthly decline and a 1.7% year-on-year fall.

4. Sony Corporation said it would cut 10,000 jobs worldwide as part of a restructuring, after it issued a profit warning earlier this week. Try getting better products not just sacking people..that’s easy..

5.Australia’s unemployment rate was steady at a lower-than-expected seasonally adjusted 5.2% in March from February, while the number of employed rose 44,000, the Australian Bureau of Statistics said. Economists on average had expected an unemployment rate of 5.3% in March, with the number of employed up 6,000.

6.Chinese bank lending in March was up 10-fold in March from the previous month.

7.NSW power prices set to rise 16%!!!!

8.Google had a stunning result..the juggernaut continues..stock spilt as well..maybe Corporate earnings will light the way..it is the real world after all…

9.VIX crashes into a hole…down 15%…

I am away next week until Thursday..Bawley Point(South Coast) where mobile reception is dodgy at best and the NBN has not yet come to townI will try to keep in touch but no promises!

 

Thought for the weekend…

An American investment banker was at the pier of a small coastal Greek village when a small boat with just one fisherman docked.

Inside the small boat were several large yellow fin tuna.

The American complimented the Greek on the quality of his fish and asked, “How long does it take to catch them?” The Greek replied: “Only a little while.”

The American then asked why didn’t he stay out longer and catch more fish? The Greek said he had enough to support his family’s immediate needs. The American then asked, “But what do you do with the rest of your time?”

The Greek fisherman said, “I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play cards with my friends, I have a full and busy life.”

The American scoffed, “I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat with the proceeds from the bigger boat you could buy several boats, eventually you would have a fleet of fishing boats.

Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing and distribution.

You would need to leave this small coastal fishing village and move to Athens, then London and eventually New York where you will run your expanding enterprise.”

The Greek fisherman asked, “But, how long will this all take?” To which the American replied, “15-25 years.”

“But what then?” The American laughed and said that’s the best part. “When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions.”

“Millions … Then what?” The American said, “Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play cards with your friends.”

Clarence

XXXX

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.