Morning all,

After a good day on Friday all over, our market will continue to build…we have waited a long time for the hurdles to fall…and one by one they have..hopefully we can get some clear track now and push higher…of course there are some serious obstacles to overcome for the real economy but the share market will be happy to push ahead…damn the torpedoes! Top of the range should start to be pushed like an elastic band…maybe it will break ,maybe come back to earth..we shall see. The Gold price has held up really well despite its rally and Gold shares will find friends..if you have been holding on to these for a while I would enjoy the run for the next few days before considering letting them go..QEIII will ensure that the metal price will stay buoyant…also the vast armada of battle ships now pooling in the Gulf of Hormuz with keep it bubbling along as well..also good for the oil price..rumours of Israel launching a pre-emptive strike against Iran helping to stoke the fires..

Our market will push ahead and will try to consolidate above 4400…these next few days are key as we are now at the top of the range so a break either way would be significant..

FMG is going to hog the headlines for the next few days as it struggles to find a life raft and sell some assets or raise some equity!!Iron Ore price up above 101 will help big time and the thin and manipulated spot price should not bring a company to FMG to its knees..the fact that it has is testimony of the level of debt and sorting that has taken place in this one..Jim Chanos has called this well….but we shall see what happens..

I have enclosed a piece on WBC which looks like it should be in the accumulation phase..under 23.80 I suspect..

Things to make me go all ADP!! (Alessandro del Piero!)

1.This guy is dreaming ..Myer managing director Bernie Brookes believes Australia’s biggest department store has finally caught up with its pure-play online competitors, after investing heavily in its bid to capture a bigger slice of the country’s $12bn online retail market

2.Canada’s Paradigm Capital picked up the broking activities of Martin Place securities on Friday night, adding to the consolidation theme running through the industry

3.FMG now has 20% of its shares shorted…still suspended but the Vultures are circling…Twiggy may need to do something with a rabbit and a hat..now would be a good time!

4.VIX moved up a little as the Dow continued to power ahead…question is how long can the sugar hit last!!

5.Good to see some festive street parties kicking off in Sydney this weekend…good way to celebrate the running festival…

6.Greece still looks interesting, creditors say they cannot ever meet their goals… and Spain appears to be getting worse and worse..mass protests spreading..

7.Rip Curl up for sale..$400m gives us a benchmark for BBG assets methinks..

8.Julia closes gap on Abbott and big Mal is still preferred Liberal leader by just about everyone ..even Labour voters!

9.South Africa appears on the verge of an all out labour strike…US Embassies attacked around the World..Iranian troops on the ground in Syria..Japan and China at serious odds over a bunch of islands…all point to higher Gold and Oil I reckon..

10.Japanese ambassador to China dies mysteriously after collapsing in the street without any obvious cause.

And finally….

A bloke sees a sign saying “racehorse for sale: $10”. He pays the money, takes it home and lets it out the horse box. The horse gets out and gallops straight into a tree. Then he gets up and runs straight into a fence. The guy goes back to the farmer and says: “You’ve sold me a blind racehorse” and the farmer says: “It’s not blind; it just doesn’t give a toss.”

Have a good Monday!

Clarence

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