Morning all,

The news from overseas was all positive as the US continues to push higher..nearly a five year high as Apple soars and faceplant does what it does best! Faceplant! Not one of Morgan Stanley’s finest moments!

So once again we are being left to our own devices..and Ex Divs are taking their toll with TLS down 19 after being Ex 14 cents today.

My target of 4350 on the ASX200 has been reached and I suspect we may push higher but I feel that the best of the run has been and gone..maybe some big caps will start to play catch up like BHP RIO NCM and FMG and this will spur the next leg up but the risk/reward is skewing a little for new positions..I am sure that the Mums and Dads will be feeling a little left out at the moment but just be a little cautious if you aren’t long already..reporting season has been mixed but generally slightly better than expected however the dogs have been punished and will be in the naughty corner for some time..people who study these things tell of underperformance for some time after a disappointing number so better to be in the momentum stocks that have done well on the results..

Another big week for results with BHP,FMG and others to report this week..should be interesting..analysts will be busy that’s for sure!

The boys are back from the BRU broker trip and my deep throat tells me things are looking positive so if you aren’t long a few of these now maybe a good time to accumulate some…

Things to make me go all ..

1.Big Nath’s horseracing empire looks to be in trouble..for a man who is supposed to be worth billions he seems to be struggling to find some readies to pay his obligations..This is the second issue in recent weeks where he has not ‘ponied’ up the required money..No Super contributions for his workers since November! Not sure this bodes too well for the WHC bid but maybe he can pull it off although the market is saying Nay!

2. Alan Joyce is the latest high-profile CEO to give up a bonus and pay rise as Qantas joins the growing list of top Australian companies to bow to investor pressure on executive remuneration..this is a growing trend to be sure to be sure! Then this….The payout for Mr Norris, who retired from the bank on November 30 last year, amounted to about $63,000 a day for that period – more than the average full-year salary of Australians. Let’s hope he didn’t have too many toilet breaks!

3.Not sure why I take the family to see the Wallabies…Homebush is such a trek and then when you get there you get flogged by the All Blacks and then straight home again! Bring back the Football Stadium matches!!

4. With two weeks left in August, the global bond market has already delivered its biggest monthly loss since 2010 as reports from unemployment to consumer purchases suggest the worldwide economy is stronger than investors anticipated. This is helping equities big time and will continue.

5. From the US consumer confidence and leading economic indicators added to optimism about the economy after data this week that showed retail sales jumped more than expected and applications for building permits rose to the highest since August 2008.

6.More retail pain coming to town from US retailers hitting our Malls soon..Hollister the next kid on the block..not sure if Myers and DJ’s have the smarts for this war!!

7.VIX down at 13.45..thats too low I reckon and a sign that maybe things are getting a bit stretched…lots of good news priced in..disappointment to come perhaps?

8. BlueScope Steel has posted a $1.04 billion loss for its financial year, confirming figures released a week ago. The net loss was a slight improvement from the previous year’s $1.05 billion shortfall. The steelmaker’s underlying loss was $238 million and it plans no final dividend. This was expected after last weeks announcement.

And finally….

Two cows were talking in the field.

One cow says, “Have you heard about the Mad Cow disease that’s going around?”

The other cow answers, “Yeah, makes you glad you’re a penguin, doesn’t it?”

Have a good Monday

Clarence

XXX

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