Morning,
Once again ‘Zombieland’ issues pummelled the market..some time ago I wondered in these writing how the Dow could be 13200 the FTSE 6000 and little old Australia trading around 4300…well..the answer is now revealed..FTSE back down to 5200 and Dow at 12400 while we are 4050…it’s been a tough May…and it’s going to continue to be tough out there..the Bureaucrats in Europe are in denial and have no solutions and s things progress they will start fighting each other..it’s already started and everyone hates the Germans..even the EC (whatever they do) are now siding with Spain..there are so many initials I get confused..EC,EU,ECB,IMK,EFSF..jobs for the boys…and girls…the Zombie gravy train..Chinese stimulus rumours were downplayed so another negative together with US house sales falling too….
The elephants in the room have got out of control and it’s really hard to ignore them..Spain and next Italy will be in the spotlight and let’s not even get started on the UK and the US. If the World were a computer, we would just hit the reset button..as it’s not, the printing presses will have to be fired up…Gold and hard assets will benefit..Gold had a good night last night up to 1610!!!Now thats what should happen when the World gets scared…
Our market will give up all its early week gains today and be back to unchanged for the week as the computers square up and push us down towards 4000…this was my target but still feel it will push through that maybe in a short sharp sell off to 3850 before it really finds support…once again the stocks with good yields and safe business models will do better..resources will suffer I suspect..NAB ex div today….expect to see us 40 odd points off…
Things to make me go…mmm!
1.Gina has finally some good news out of her Fairfax stake as Journalists go on strike..it’s all hands to the deck to write the copy, so she gets to write her own articles..how cool is that! Go Gina!
2.Bank of Spain Governor will leave a month early…stress getting to him. White flag! Spanish debt costs spiralling out of control..time for a siesta then..when the going gets tough the tough retire!
3.Aussie dollar hits six month low..been saying it for a while..we will see 95 cents soon..
4.IMF chief Lagarde gets paid 497,000 bucks and its tax free!!!! so a good moral high ground to lecture the Greeks about paying tax..good one!
5.TLS is apparently looking at Nine Entertainment…you cannot be serious..stay with what you know best guys…network is the best you just need to leverage that with data and the rise of Smartphones..its not that difficult..
6.Radical Left ahead in the polls in Greece…and we have another three weeks of this rubbish to endure..high frequency traders will have a field day as computer dominate trading.
7.faceplant down again…poor old Mark he is slipping down the Billionaire list rapidly..shouldn’t have gone on honeymoon..and what a mean tipper…
8.The VIX or fear index which I love harping on about hit 24.14 last night..biggest jump since forever…up 15% in an evening…will go higher..fear is rising and complacency is about to be vanquished!!
9.David Jones figures continue to fall.down 4%….avoid retailers at all costs..similarly the landlords are coming under pressure now ..Westfield is a worry too!
10.Julia told the miners last night that the resources belonged to all Australians and that they should benefit all ..what an old fashioned thought..lovely..
For those of you who have been following my rants in the morning will now that I have been bearish for a while now and suggested that the Sell in May strategy was the way to go…nothing has changed. I remain convinced that rallies must be sold and positions de-risked..I have said it before and I will say it again don’t be that seagull at Kingsford Smith and get sucked into a rally…they are short and sharp and built on sand..until otherwise notified..
And amazing fact of the day…
Old people really do smell different..scientists have now proved it..from today’s SMH…or what’s left of it.. DON’T turn up your noses – there really is such a thing as an ”old person’s smell”. But new research shows that it is not as bad a smell as we think.
Next week I am off on an overseas jolly to Thailand, to benefit from the last gasps of a strong Australian Dollar..in my absence Andrew will be in charge …may or may not have time to write tomorrow as may have a Channel Ten gig instead..on Breakfast..we shall see..
Remember plan for the worse and hope for the best!!!
Clarence
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Beeks Downunder-Because not all financial news is boring! 