Today’s price action has been panicky to say the least..it’s been a while since we had a 100 point down day and it hurts..BHP/RIO/FMG and NCM leading us down as the resource boom has been announced as dead..really..we shall see but it is clear that anything with income/yield is good…growth and geared to China bad!

 

I have been a bear for a while now as you will know and felt that the market would struggle for the next quarter until we sorted out the World..well it sure is weak and not much fun…so where to from here…we are due a bounce..won’t last for long as the Greek mess is still front and centre but use any strength to keep some liquidity as bargains will start to emerge in the coming months..I do believe that by year end the market will be around 4700 but it’s hard to see any good at the moment…elections will keep investors sidelined and markets will be skittish..4150 should provide some support before giving way to 4000!We seem to go down by the lift and up by the stairs….stay tuned for the buy signal…not yet…waiting! waiting! waiting..around 4000 to 4050 should prove to be good stuff..

Clarence

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