Morning all,

Yesterday’s lacklustre rally will falter as US markets eased back on the IMF growth downgrade and anaemic economic figures. We are truly in the Summer Doldrums (Northern Hemisphere that is) and things will start to get worse as the Olympics gets into full swing. News late that Moody’s had downgraded 17 Italian Banks also didn’t help confidence although the Zombieland markets were up again with the Stoxx Euro leading the way  ..that’s 6 straight weeks of gains..up nearly 10% from early June low. Certain disconnect with reality playing out I suspect!

 

Once again the rally in the ASX 200 was on pathetic volume..brokers are squealing everywhere! Expect to continue to see our market drift sideways with a downward bias and a test of the 4000 level again on any shocks!

Yield paying stocks continue to be in favour ..and who can blame people when US Treasuries are back at near record low yields and some Zombie rates have turned negative..You pay people to look after your money..really?Who would have thought eh?

 

Things to make me go all

1.Yahoo appoints third CEO in a year.Barton Biggs dies..the two aren’t connected surely?

2.Bob Ingham is playing chicken and looks set to pocket $1.6bn..Not bad at all..love em!

3.Market very sceptical on the Big Nath’s bid for Whitehaven.Trading well below the bid price..Maybe this is one to look at in the days to come.

4.From my friend Tyler Durden over at Zero Hedge “QE3 will be a dismal failure and the last bullet in the Federal Reserve’s gun will turn out not to be the hollowpoint that many are projecting, but instead simply a ‘bang flag”.

5.A surprise decline in June retail sales was the latest worrying sign from the economy, pushing stocks slightly lower on Monday, but Citigroup shares limited losses after it reported earnings. Oil shares also helped as Crude rose.

6.The Government seems to have thought of a new plan to tackle people smugglers..show them episodes of the new reality series the Shire..should keep them out! Poor old Channel Ten though..wouldn’t want to be Lachlan or Gina with this rubbish on air!!Bring back Sylvania Waters!!

7.faceplant gets its first big volume day and promptly does just that ..down 8%Ouch!!$28.25!!

8.Chinese equities taking a battering despite Wen talking the economy up and thoughts of more stimulus…its not Wen we need but probably now!

9.Worse US drought in a generation won’t help the recovery either!

10.Whitehaven Coal trading at a 21 % discount to Nath’s bid..No one seems to believe him..Maybe he’s hoping for another bidder to emerge..In which case it’s a big game of chicken..seems very unlikely.

 

And finally the scariest US  equity chart I could find..

Scary Chart..history repeating perhaps!

This is a chart showing what happened last year and the big red down is what happened around 21st July…as they say lets hope its different this time!

 

And on the Olympics…gotta love that security firm..poor old army picking up the pieces again..

At the Olympic Games, Rhoda meets a man carrying an eight-foot-long metal stick.

’Excuse me,’ says Rhoda to the man. ‘Are you a pole vaulter?’
’No,”‘ says the man, ‘I’m German, but how did you know my name is Walter?’

 

Have a good day

 

Clarence

xxx

 

Any financial product advice contained in this email is general financial product advice only and does not take into account any one person’s objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.