Morning all,

Well here we all are then 4400..what next?…well from the tone of overseas it’s time to consolidate…more Zombie woes and New York dog regos (or manufacturing or something) was enough to take the steam out of the market.

Expect to see some profit taking continue and yesterday’s action was pretty pathetic really..Resources the flavour of the month with BHP,RIO and NCM taking the lead but volume again was not great…expect some Gold shares to ease back as did the price but buyers will be waiting with their cheque books in hand!

The next few days are going to be interesting..do we break through the top of the range or settle back down into it again..it’s a bit like climbing a Himalayan peak..its siege tactics that will win the day ..get high ..stay high and get used to the altitude!

FMG announcement this morning was a positive …as Twiggy pulls another Rabbit out of his hat…this guy is good..new 4.5 bn dollar facility will keep the bears at bay…shorts will be struggling to cover this morning especially as the Iron Ore price is knocking on 105 again! As Mark Twain said the rumours of my death have been greatly exaggerated’ Sorry Jim there’s still life here and you had better know it!

I am going to start my Idea du Jour tomorrow with a straight no nonsense Buy a stock at this price, sell it at that price recommendation..I will leave it up to you to take whatever action you think is appropriate but I will give you one clear trading idea a day..hopefully they will be profitable..we will soon find out!

Things to make me go all Magic Circle!(Rabbit out of the hat reference!)

1.Macmahon the next mining services company to downgrade their numbers this morning.

2.Oil price drops $3 in one minute..gotta love computer trading!!!Obviously not just equities these days! Confusion and chaos rein.

3.Apple shatters the $700 level with record iphone 5 Sales!!!The stock is up 73 % this year..First day orders reach 2m units!

4.Tensions mounting in the Middle East with 4000 marines heading for the Gulf plus three Aircraft Carriers!!They aren’t there for their holidays!!

5.More yes more…. Bendigo and Adelaide Bank and Suncorp are both poised to launch Tier I hybrid raisings to the retail market as early as Tuesday.

6. Nine Entertainment Co has lowered earnings expectations for the 2013 financial year, making it tougher for lender Goldman Sachs to claw back value from the $1bn investment made by two of its funds in any restructure of the group .The potential receivership of Nine Entertainment is now a real threat, amid a critical debt covenant test for the group at the end of the month.

7.Rising tensions between Japan and China over islands…

8.I suspect our Glenn will have a tense day answering questions about the Scandal over the currency at the RBA…It is a scandal why the Aussie is so high..only he can tame the beast and lower rates thus the currency…with the US embarking on QEIII we will see more weakness in the US Dollar as they use currency to help drive their economy!

9. QR National: plans to change its name to Aurizon. The new name combines the words “Australia” and “horizon”. CEO Lance Hockridge says it reflects the Australia-wide aspirations of the 147-year-old railroad group, and marks a “symbolic break” from legacy issues.

10.Great stuff from Marc Faber (Dr Doom)..

Lelde Smits (interviewer): Marc, you have predicted a number of financial crashes, what is different about today’s situation?

Marc Faber: I think we have the money printing today, which we didn’t have before. And so, it’s very difficult to predict because it’s a political decision. All I can say is, if you look at history, the most powerful people were usually in the end killed, or hanged or crucified. And, the central banks today are the most powerful people. So, you can imagine what I’m thinking about the central banks and what their leading employees will eventually happen too.

Cheery stuff!!!

And finally for film buffs out there …..Gold!!

Have a great Tuesday

Clarence

XXX

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