Morning all,

Well what ever it takes..that’s the mantra coming from Super Mario..Whatever?…markets rallied as the shorts scrambled for cover yet again..the markets are like a coiled spring and though you can push then down with negativity for some time eventually they do bounce.Whilst it is easy to get carried away with the run last night I am a cautious man and believe that we have seen this all before..the Zombieland Gurus have said they will defend the Euro to the death but still talk is cheap and need to see some action..still it bodes well for a nice opening for the Olympics..the end result is more debt to replace the debt of the past…if this is the answer, what is the question…I believe that rallies should be sold into as we are still in the trading range of 4000 to 4400 and short term even 4050 to 4200…Easy to get carried away..don’t.

Our reporting season is just round the corner so I suggest we wait and see how that pans out..The strategy remains to buy stocks with sustainable good yields and sleep at night..There will come a time when its right to chase the fun stocks and the resources and switch out of the banks and TLS but its not yet.. One comment from Super Mario doesn’t make it alright.

Yesterday we got production numbers from one of our perennial dogs NCM.The stock has long been a disappointment and shows the value of acquistions…bet they wish they had never heard of Lihir!!Still causing them grief but maybe they have turned the corner and things are starting to look a little brighter..Once again this stock has been shorted til the cows come home and is due a more sustained bounce.Brokers are now upgrading the stock so expect to see some more strength especially with the Gold price moving up nicely..if it goes through 1625 then 1675 is the next stop..

I have spoken bit here and on TV about Whitehaven(WHC) and believe that the risk/reward is now starting to swing in its favour..If you believe that Big Nath can find the money then at 3.70/3.80 this thing is a steal..I am inclined to believe and feel the downside is limited to 3.20/3.30 whilst there is 1.50 of potential profit..One to bear in mind anyway..

Thinks to make me go all Lauren Jackson.

1.Fantastic news that Lauren will carry the Aussie flag at the ceremony couldn’t have asked for some one more qualified. Legend!

2.Faceplant ..well what can I say..spectacular miss by the company and stock plunging the depths…not many ‘likes’ on this one…expect more bloodshed to come.$20 anyone?

3.Iron Ore starting to lose its lustre as price heads south…not too flash with prices at a 10 month low..Bad news for the FMG/RIO fans..

4.Solid numbers from both Coles and Woolies..suspect MTS will continue to be squeezed out of the game..Julia’s giveaways are helping these two.

5.US GDP up soon…will be interesting ..better numbers on the jobs front last night! No QE III?

6.Gold stronger last night as the printing presses get fired up again provided Moaning Mertle says Ja! Super Mario has to ask her first!!Whatever it takes,right!

7.LIEBOR scandal set to spread with US authorities now about to charge in.

8.Up massively early to do Sky TV this morning…hard to think at 6.30 in the morning …usually takes me a while at the best of times.

And finally…let the games begin..good luck to athletes everywhere, may you achieve your PB’s and lets hope the games are safe and sunny for all involved..will be thinking of London and my home town…gonna be great!!

Have a good weekend

Clarence

XXX