Morning all,

Once again Greece was back in the spotlight as the Troika of money men could not sign off on the latest Greek Austerity plan….it’s a plan so cunning you can brush your teeth with it ..after the run the markets have had it was inevitable that there would be some profit taking and the Dow obliged. Tomorrow sees the German Court vote on whether these bailouts are allowed so a few nerves there as well..everywhere I look I see optimism and hope driving the market..I hope it’s not misplaced but the switch from safe to risk was in abundance yesterday and suspect that we will see that again today although may be a relative thing..Iron Ore was significantly better last night up to $95 a tonne…so we should see some buyers still for Iron Ore stocks with FMG front and centre amid rumours of a tie up with the ‘Rinehart Cowboy’.

 

Gold was a little easier last night but Industrial metals improved..Tin was up 3%!!Copper up 1.2%…SPI down 9…Expect a little more than that today as a few nerves jangling pre German vote..it should go through …Greece should get their money and the market will continue to push a little higher…

 

I believe that we will see the Gold price pick up again and head above 1750 which will bring out the buyers again for gold stocks especially if we see weakness in the Aussie Dollar..I still favour parity as the commodity price falls start to work their way through the budget and company profits..

 

Thursday is FOMC meeting and we will find out about QEIII…market will be in pause til then..

 

Things to make me go all US Open…

 

1.Ten Network has become the number 4 free-to-air television broadcaster, with its ratings collapsing so much since the Olympics that it is being consistently beaten by the ABC. A number of analysts have noted that another capital raising would not be of great shock to them…. Thankfully the Shire has finished!!

2.Four senior Lend Lease construction executives have been stood down following the discovery of “discrepancies in the reporting of profits and losses” by subsidiary Abigroup (AFR, p. 38). Management has been forced to launch an internal investigation and call in its auditors to examine the irregularities relating to more than $1.5bn of projects in the construction & engineering subsidiary

3.Australia’s coal industry continues to shed workers, with more than 2000 jobs lost this year as thermal and metallurgical coal prices slide, costs rise and Chinese demand softens.

4.According to the US markets there is now a 99% chance that the Fed will bring on QEIII and interest rates are set to remain at major lows for some years to come as Unemployment remains stubbornly high and growth is anaemic at best!

5.The Japanese Banking minister has been found dead at his home..

6.Andy Murray is on the verge of winning his first major title..just don’t choke Andy!!Don’t choke!!

7.Elvis’s soiled Undies fail to sell..can’t think why!!I mean is’nt it a bull market..US market only 6% below it’s all time high!!same with FTSE and DAX!

8. Consumer borrowing in the U.S. unexpectedly decreased in July for the first time in almost a year, restrained by a second straight decline in credit-card debt..VIX leaps 13%.

9.Japan has come up with a sure fire winner way of solving its issue with China of disputed Islands, the Senkaku Islands,..they are just going to buy them!!China not happy…expect a hostile takeover soon perhaps?

10.The Taliban is threatening to kill Prince Harry ..apparently they have set up a strip billiards tournament to try to flush him out in the open and then take him out…that’s if his Dad doesn’t get to him first!

And finally.. We had a depression fair in the back yard. A major game there was Pin the Blame on the Donkey..

As I get to the end of this email I feel a choke coming on…Nooooooooooooooooooooo!

Have a good Tuesday

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.