Our market put in a late spurt yesterday as shorts covered in front of the Jackson Hole meeting and the option expiry on Thursday. News that Julia had executed another triple pike with a twist on Carbon Tax helped as well…getting very puzzled now that a impost designed to change our habits and save the World is giving us cash back and now watered down with new floor price abolition..not sure I get it anymore..isn’t the impost designed to hurt so we change…lost me sorry!
I remain of the view that the market has priced in too much optimism on further stimulus..I feel that Jackson Brown will be a damp squib and markets will be disappointed..happy to be proved wrong though!!
The range is still 4000 to 4400 and as we near the top in a market that is going Ex Div I am wary!.The reporting season has generally been ok with some big winners and similarly some big losses..FXJ I am looking at you now…but whether it is enough for the next leg whilst Commodity stocks languish remains to be seen..I suspect not..the big surprise out of the season (to be Jolly) is the strength of Industrial shares and the weakness of Resource stocks..we were supposed to be having a resource boom after all and if you read the media ,which I gather fewer and fewer people are doing, then you would think that Industrial business is dead..deceased..it is no more..well maybe it’s just pining for the Fjords!
News yesterday was positive from Seven Media on the back of big Tonka Toy business…Aristocrat surprised on the upside as its Japanese gaming machines took off..Flight Centre was a ripper but warned on growth ahead getting harder..
As far as things to buy ..I would suggest that you lie down for a few days and wait to see what happens ..Jackson will be a dud and the market will go Ex Div in September ,together with eth German Constitutional Vote on the 12th…expect some weakness after the run we have had….if we do push higher in the coming days ..may be time to lighten your long positions!! Banks may be a place to start!!!
Things to make me go all Jackson Hole!
1.Gold slips 6 bucks as hope for QEIII fade. Oil rose though as Hurricane Mitt set to hit Tampa…
2.Obama’s US is now officially in debt to the tune of $16,000,000,000,000BAMA!Ouch..only took 286 days to go from $15trillion to $16trillion!!
3.NCM has had a problem with its communications from PNG as they are experiencing a close down of their operations…did take them four days to report it…love continuous disclosure!!
4.Great results from Virgin and shows why Borghetti is da man!!Unlike Alan the Leprechaun who is looking a little bit green around the gills these days..I guess though the Virgion man doesn’t have QAN unions to deal with ..but Alan does look like Sol did when he spent his whole time upsetting people in this country…unions,pollies,workers,customers.. sound familiar..need a Thodey to take over QAN…
5.African resources conference today..bigger than Diggers and dealers..that’s saying something..
6.More trouble in Catalan as they ask for $5bn… The region says it will not accept political interference as part of the loan.
..and news just in that ECB President Mario Draghi has decided not to attend the annual Jackson Hole meeting of central bankers on Friday sparked plenty of speculation that the central bank is preparing to fire its ‘big bazooka’. I thought he was going to do whatever it takes…can’t even get on a plane..I mean really!!!
7.Rumours of a Prince Harry video as well…lovely stuff..Mum would have been proud!
8.Grahame Morris calls Leigh Sales(ABC Journo who poleaxed Abbott with her questions) a Cow…bless! Love these old Howard Gov people..
9.Japanese figures yesterday a worry..China manufacturing numbers also out soon..they just need to make up a number ..look inside the fortune cookie perhaps..
10.Market going nowhere today I am afraid!
And finally……a letter from one of my readers
Dear Tech Support:
Last year I upgraded from Boyfriend 5.0 to Husband 2.0 and noticed a slowdown in the performance of flower and jewelry applications that had operated flawlessly under boyfriend 5.0.
In addition, Husband 2.0 uninstalled many other valuable programs, such as Romance 9.9, and installed undesirable programs such as AFL 5.0 and League 3.0.
Conversation 8.0 no longer runs, and Housecleaning 2.6 simply crashes the system.
I’ve tried running Nagging 5.3 to fix these problems, but to no avail.
What can I do?
Clarence (the friendly Essex Lion!)