Morning all,

Last night we were treated to a fine example of Sir Humphrey at his best with Super Mario backtracking faster than you can say Bundesbank!The following link sums up the bazooka that he was going to throw at the market ..check this out. Sums it all up really.

Our market was on hold yesterday and will be weaker today as Zombie markets came back to reality..Oil,Gold and other commodities were similarly affected so expect profit taking and selling today,only a flesh wound perhaps but Super Mario has probably quashed any euphoria so its back to waiting to see what the Masters of the Universe can come up with.Not much I suspect.

On another front yesterday we saw a stark reminder from the US of the dangers of computers trading. Knight Capital had a rogue program that went haywire and started making markets in things that were so far away from reality they had to be suspended and the trades cancelled. There are reports that the program issues have cost the company $440mThat’s a huge sum and their shares plummeted 50%Bet they wish they hadn’t oiutsourced that codingHowever it does highlight the problems with our new digital marketsthings happen quickly and they are not always right and when they go wrong we get flash creashes and other major issues.Anyone remember ‘War Games!’

 

After my story yesterday on IAU the stock rallied another 30%.Don’t chase this one,the stock is supported by the cash of 24 cents but at 38 well I am less inclined to play in that sandpit.

 

Back to our old strategy of defensives and yield stocks I am afraid..

Things to make me go all Draghi.

1.Team GB fires at last..go guys!!Good to see Anna Meares get a Bronze though after the Brits got disqualified. These Olympics are showing the unpredictable nature of sport. Isn’t that why we watch it..that and the Dutch Womens’s Hockey team!

2.Faceplant continue to plunge..down to $20..Linkedin beats expectations.

3.BHP writes off a small amount on their US adventures..market may have been expecting more.Only taking a small $2.8bn hit…this time!!Don’t you love takeovers ..advisors make money!

4.SPI down 28 points ..should be enough but risks loom!!Next ECB meeting in September ..let’s hope its not too late by then..

5.Germany’s Constitution Court meets on September 12 to decide whether the ECB’s new tools to fight stagnation are legal…really?

6.Knight Capital..not quite so much capital now I suspect!

7.Results season just round the corner so we will wait to see before being disappointed again.

8.Retails sales picked up ..even the Department stores were stronger..gotta love that Carbon Tax handout.

9.Go the Aussie team..I thought the media in UK was tough but we seem to be sticking the boot in here too…its confusing I know being English and Australian!

And finally I am offline today as its my wife’s birthday and I am taking her out to breakfast and then away for the weekend..

Have a great weekend..

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.