Good morning,

There seems no rest for the wicked as once again overseas markets were buffeted by the’ Zombieland’ dramas..the sad fact is that what is lacking is LEADERSHIP…’Zombieland’ seems to be a leader free zone at the moment..the worrying thing is that with this uncertainty people are only too happy to follow whatever crackpot leader turns up..happened in the 30’s in Germany and look what happened there. There is massive potential now for civil unrest and the divisive politics that are on show in Greece. The new left wing nut case is a case in point and a worrying one at that…Spain’s banks got downgraded and Greece itself was downgraded..wasn’t sure it could be downgraded anymore than it already is…’Moaning Mertle’ has been invisible as has France’s new man…in order to solve the current debt crisis we need a hero! Where are the Avengers when you need them..eh ..making movies that’s where!!

Our market yesterday tried valiantly to find some stability but soon ran out of puff and last night the SPI was down 75 so nothing good is going to happen here today! The only bright spot is Gold which finally showed some safe haven status last night and had a decent rally..that’s what it should do…

My Sell in May strategy is looking way too good at the moment, as is my sell TLS at high 3.60’s…however even I am surprised by the speed and viciousness of the markets in the last two weeks..I still expect to see us down to around 4000 which will be around 10% pullback…However unless we get some serious leadership this could all end far worse than I have thought…reading some far more learned commentators than me is very depressing…the Great Euro experiment may be coming to a ugly end…and don’t get me started about the issues in the US with debt or Japan for that matter…

Things to make me go….ouch!

1.Euro banks starting to head down the Northern Rock path with massive outflows from Bank accounts…the run on Banks in Greece and Spain to accelerate as panic sets in…would you leave your hard earned in Greek Bank…don’t think so! Mattresses will be stuffed!

2.US employment numbers showing signs of slowdown…Goldman Sucks cuts it’s China forecasts..

3.G8 meeting this weekend…we need some leadership..bring on a coordinated front to tackle these debt issues…

4.Mark Zuckerberg will be able to afford a new ‘hoodie’ as facebook lists Friday US time …huge appetite for these things, $16bn raised..I am not convinced..the thing that concerns me about facebook is the huge growth in smart phones where facebook seems pretty hopeless…don’t see any ads on my phone…dislike! Smart money exiting…looks like a Myer rerun!Winner will be Computershare which is running the registry.

5.Greek Neo Nazi Right wing party enters Parliament in military fashion…bring back the Colonels..they knew how to run a country.

6.HP considers cutting 25,000 jobs…Confidence sinking in US so bring on QE3!!!Go Ben pull that trigger..swamp the World with more money.

7.Bill Shorten calls BHP boss a liar..good look…might just take his bat and ball and go back to South Africa or London.

8.Donna Summer dies…celebrate her life with a drink every time she sighs in ‘I Feel Love’.

9.Bad omen for S&P 500 now down 6.66% in May.(coincidence I think not!!)

10.Poor old Sam Moran couldn’t even get a gig in the new look Wiggles…shame!

We need a circuit breaker of a weekend to catch our breath..G8 needs to come up with something fast…or confidence will go past the point of no return and then watch out Pollies..the people will rise and kick you out…heroes are in short supply…

I will leave you with one thought for the weekend from David Kostin Equity Strategist at Goldman Sachs..

“The wide range of possible outcomes on both the super committee process and the unstable political economy in Europe drives our view that investors should assume the worst while hoping for the best.”

Be careful out there

Clarence

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