Morning,

As the G20 winds up we move into the FOMC meeting..hopes that Uncle Ben will unleash the next leg of pump priming have helped push the market higher. Last night equity markets rallied in anticipation of more stimulus. There will be some disappointed punters if Ben refuses to play ball…but as the Dow approaches the 13,000 level again is it time to ask the question …crisis what crisis? Even Old Hank Paulson came out last night and said he thought that Europe wouldn’t really affect the US greatly..let’s hope he is right!

Anyway latest news out of ‘Zombieland’ is that both Italy and Spain are going to be bailed out to the tune of 600bn quid…where do they get the money from..anyway maybe we will get a chance to rally as news turns positive..still feel that 4200 is possible as I said the other day.

 

So to our market..all the news is Fairfax…if you read any of their papers it seems that every journalist is reapplying for their jobs with their take on the Rinehart Cowboy’s moves…I am not sure what all the fuss is about myself..rich people have run newspapers for years..Citizen Kane anyone?..they have always sought to influence public opinion ..but at the end of the day Gina is a business woman and if she makes the paper into a pure Gina mouth piece and destroys journalism who is going to subscribe or read it…I mean if she really wanted to lose money she would buy a stake in a TV station..oh yeah that’s right she has done that too……still signing or not signing the Independent charter is completely irrelevant ..she does not control Faifax after all..last time I looked 19% is not control…bid for the thing already!

 

In other media news Consolidated Media Holdings Limited (announces that it has received a conditional and non‐binding proposal from News Limited to acquire CMH at a price of $3.50 cash…

 

Expect to see our market rally today as we await QEIII..personally I don’t think it’s going to happen but you never know..I also still believe that ‘Zombieland’ will get worse before it gets better..I am amazed that the EU President does not like to be told how to run things..I mean they have done such a great job so far ..I would have thought some outside ideas would have been welcomed…the real issue with the G20 meeting is the complete lack of leadership and the bickering that is prevalent..everyone is trying to protect their own little empire and that inward looking leadership will NOT solve the World’s economic problems.

 

Things to ponder!

 

1.England beat Ukraine to put them out of Euro 2012..Go Rooney!!

2.SPI up 26 points and Aussie dollar knocking on 1.02.

3.Equity volumes around the Globe continue to be terrible despite the rallies.. Volume on Wall Street is half what it was at its peak!….Mums and Dads are no longer in love with shares and Instos just ploughing money into safe havens.

4.Things hotting up in the Echo Entertainment battle as Genting picks up more shares to take it to nearly 10% as well as Jamie Packer..my Cab driver yesterday was very negative on the Star..there will be stories but maybe not the ones it wanted!!!

5.VIX pushes up slightly to 18.4..still very low considering the risks..more apathy then anything perhaps..

6.There is another Euro summit next week…and then another and then another!!

7.In the last five years Apple has risen 380% whereas Microsoft has fallen 2%…says it all really…

8.Black Caviar blows out to 1.30 for Saturdays race as Frankel the UK wonder horse wins by 11 lengths!!

9.Charlie Sheen to retire from acting..I thought he had years ago..was Two and a Half men acting? I thought it was a reality show!

10.Jaimie Dimon says of JP Morgan…”we don’t gamble, we do make mistakes’

 

Last night on TV, I was pushing a small cap minnow called RNI…it’s looking for gold and copper in close proximity to the Sandfire prospect Degrussa and results are expected soon..now at the moment all the little ones are in the dog house so something special needs to happen to get this moving, but at 27/28 cents it could be worth a  look for those that like an adrenaline shot..

 

I feel that our market has more rally potential as the shorts cover ahead of Uncle Bens announcement but I would be looking to sell around 4200 again as the upside is seriously limited while ‘Zombieland’ burns..Volumes are abysmal ..$3bn yesterday is hardly the stuff that stockbrokers dreams are made of..at least not good ones…dreams that is!

 

I have enclosed a report on Echo Entertainment..according to my Taxi driver the place is looking very ‘smick’ but they are treating their customers very badly and they are driving punters away..too many Pokie machines sitting idle and not taking people’s money. Looks like there is potential for better management and someone to take advantage of recent upgrades to the operations…game on Jamie!

Enjoy the rally…whilst it lasts…

And in late breaking news…New York moves to prohibit welfare recipients from spending on cigarettes, alcohol, gambling and strip clubs!

Shame

Clarence

XXX

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