Good morning,

 

Well what fun we had yesterday..down 100 points..my call that the market would test the 4300 level again was supposed to take a few days but in fact took just one. Expect a bounce today with little enthusiasm in front of the great magic show tonight. The Great Swanny will produce out of his hat …a rabbit..no sorry that’s the wrong trick…da da…  a surplus…hooray!!Yesterday’s move was overdone..the bears really came out to play and a few bits of bad news locally coupled with “Zombieland” election results were enough to get the shorters excited..down we went..SPI is up 32 but don’t get too carried away..we will open better and then sit there and all look at each other and ask what’s next.

 

There is no doubt that events in Greece and France are going to have some serious consequences..Le Clog ‘Hollande’ has a big job on and may start to wish he hadn’t won the election but at least there is a belief now that austerity alone will not work…stimulus and growth is the only way to get the Zombie zone out of its misery..now all they have to do is convince Moaning Mertle…

 

On our market I expect to see Banks and bigger resource stocks leading the bounce.UK was closed last night so no metal prices from LME but Iron Ore holding steady at 1.44..volume will remain light and conviction worse..the computers are in charge of the asylum!

 

Through all the  carnage yesterday TLS remained pretty firm considering hovering around 3.56-3.60..this one is still a hold and the yield will mean it holds up whilst all around are losing their heads…

 

I still believe that the sell in May or at least scale back in May is the way to go..it’s going to be an uncertain summer in Europe and as it heats up so the protesters will take to the streets if they cannot take to the ballot boxes..incumbents are in trouble and there will be a new order taking its place..Uncertainty is not good and with more elections that will bring more challenges to the Euro Policy…expect money to be printed..

 

Best advice today use rallies to derisk at the moment..the risk monster will be back!!!

 

AND Biggest decision today is whether to watch the Budget or ‘Masterchef’…they are both involved in cooking..one books ,the other is Masterchef!

 

 

 

Things that make you go mmm…

 

1.I want a job running union..how good are the perks…No FBT on those ones..good on you Craig!A new standard for our Pollies..no wonder no votes unless they are made to..

2.Buffet was on the telly last night talking it up and lo and behold it happened..and so it came to pass..

3.As Economy slows and bonds fall in Australia the RBA will continue to cut rates to try to counter reduced Government spending. At least banks will benefit from lower delinquencies

4.Greek tourism collapses down 12.5% and Athens office vacancies rise to 20%!Not a pretty picture..

5.Chart below shows how many Americans are applying for disability..and food stamps..not pretty either.

                       

6.Facebook kicks off its  roadshow..feel this is overhyped and overpriced..but big fees so no one will question the emperor too much.

7.Aussie Dollar heading for parity..or below maybe..

8.Coalworks bid from Whitehaven and Japanese looking at Australian Coal and Gas assets…

0.Oil at three month low..

 

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