Morning all,

Yesterday was once again all about Iron Ore and Fortescrewed (research piece enclosed)…with the price of Ore under $90 a lot of questions are being asked and the hedge funds are out in force doing what they do best hunting in packs and aggressively selling stocks short…Twiggy is firmly in their sights and Jim Chanos ,one of the most (in)famous shorters must be struggling to wipe the grin off his chinny chin chin! So the big question is when will this carnage stop and will the Iron Ore price rally allowing our hero Twiggy to escape the clutches of the evil shorters..well I believe that we will see the Iron Ore price test the $80 level before rallying and then not rallying hard until after we have the change in leadership in China…until then it’s going to be hard work..of course it’s not just Twiggy and the Power ranger that are struggling but Swanny will also be watching the price of ore with a vested interest as he sees his budget fly out of the window..gonna be some big revisions if the price stays here..and let’s not talk about coal!!

 

Yesterday we had the GDP numbers which were a little below some forecasts and showed the two speed economy in all its glory..trouble is the return to the mean average of a one speed economy could be nasty as Mining investment cops a beating…its the rear view that these figures show…the big casualty and the shock absorber in all this is the AUD…the should weaken considerably and push towards 95/96 in time…book those holidays now!.

 

On Zombie news we await the latest alphabetti spaghetti announcement….MOT (Monetary Outright Transactions!!!!).they seem to have come up with a new plan..a plan so cunning you could put a tail on it and call it a weasel..although leaks suggest it’s going to be a sterilised buying of short dated Government debt…not sure what sterilised means but sounds intriguing!!

 

To our market and despite some overnight rallies in commodities the talk will all be Iron Ore and Mining service stocks..Banks may bounce a tad but my call from a few days ago on Bank share prices may have been a good one after all…I remain cautious and say again the market is stuck in the range and will NOT break out until Zombies have loaded and fired and more importantly hit their target with their Bazooka!!

 

Once again though we shall wait and see what comes out from Super Mario and the Unemployment number…expect some ‘toing and froing’ but the market feels like it wants to go lower until we see China pull out of it squiggy landing!!

 

Things to make me go all Rinehart Cowboy…

 

1.According to Marc Faber who is always a bear.. “There have been four mega bubbles in the past 40 years. In the 1970s it was gold; in the 1980s it was the Nikkei, and in the 1990s it was the Nasdaq. Bigger than all of them, though, has been the iron ore bubble, a tenfold increase in prices in less than a decade.”

 

2.BREAKING news from  France: FIRE BREAKS OUT AT FESSENHEIM NUCLEAR PLAN, INJURIES REPORTED..not good for Uranium if its serious..

 

3.Sterilised Bond buying means.. To sterilize the bond purchases, the ECB will remove from the system elsewhere the same amount of money it spends, ensuring the program has a neutral impact on the money supply.

 

4.Lynas scores Malaysian Plant Licence…finally some good news for the company ..bad news I suspect for locals!

 

5.QAN /Emirates expected to announce tie up..tie me Kangaroo down Sheik..tie me Kangaroo down!!Looks like International business will eventually merge with Emirates one day ..

 

6.Macquarie Private hit with Compliance issues…ASIC are so vague anyway its hardly surprising..

 

7.Billabong gets another offer at 1.45 cash..it’s now a two dude surf off and the winner gets to ring the bell!!

 

8.Unemployment number today ..expect to see a rise in that number..expect RBA to cut again before Xmas..ie October and the AUD to hit 96!!!

 

9.Andy Roddick leaves the Tennis arena..true champ..

 

10.Italian Superstar Del Piero signs for Sydney FC..2m a year and escape from Zombieland free pass..trouble is he has to play A League..still he should score a few goals!!

 

And finally….

 

There was a man who worked all of his life and saved all of his money. He was a real miser when it came to his money. He loved money more than just about anything, and just before he died, he said to his wife, “Now listen, when I die, I want you to take all my money and place it in the casket with me. I wanna take my money to the afterlife.”

So he got his wife to promise him with all her heart that when he died, she would put all the money in the casket with him.

Well, one day he died. He was stretched out in the casket, the wife was sitting there in black next to her closest friend. When they finished the ceremony, just before the undertakers got ready to close the casket, the wife said “Wait just a minute!”

She had a shoe box with her, she came over with the box and placed it in the casket. Then the undertakers locked the casket down and rolled it away. Her friend said, “I hope you weren’t crazy enough to put all that money in the casket.”

“Yes,” the wife said, “I promised. I’m a good Christian, I can’t lie. I promised him that I was going to put that money in that casket with him.”

“You mean to tell me you put every cent of his money in the casket with him?”

“I sure did. I got it all together, put it into my account and I wrote him a check.”

 

Back on Sky TV this afternoon on the ‘Wham! Bam ! Thank you Mam’ 5.30 round up…always fun!!!

 

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.