Morning all,

Once again markets are in pivotal mode with the jury out on the stimulus packages around the Globe. Is this a band aid solution or a game changer?..with the Dow currently clinging to multi year highs they have already decided that it’s a game changer..our market however languishes and is considerably more sceptical/cynical and with much higher interest rates than elsewhere there are viable alternatives to the equity market..not so elsewhere. Noises out of the RBA yesterday were encouraging on the interest rate cut front..I still expect to see them cut another 25 bps before Xmas.

4400 and where to now!!!

Big news last night was the continued rally in the Iron Ore price back to 109!!Big run since the dark days of 85 a few days ago..just shows how quickly this thing moves..at this rate FMG will be back expanding again!!Maybe not..but the Grim Reaper has been banished for the time being in this one..huge rally yesterday and Twiggy will be popping the Champagne corks again…expect another move up as the shorts continue to get squeezed but I believe the range is now 3.00 to 4.00 so as we push up to the top risk increases and reward decreases..things move quickly at FMG!!You will  never get bored trading this stock. Shorters have been spanked!!!

Idea of the Day:

BTR-Scoping study completed…Buy at 1.13 for a move towards 1.30..Stop loss at 1.08…quality management and interesting African projects.(Research available on request)

Things to make me go all Fe2O3

1.NAB to boost its online trading presence..good luck with that one!!

2.Australia is forecast to lose $20bn in export revenue on the back of the dramatically falling bulk commodity prices, but the government’s resource adviser says demand will continue to rise as the investment phase of the mining boom is yet to peak.

3.FedEx’s CEO sounded a warning about the fate of China’s export-driven economy as the world’s largest air package shipper cut its forecast for global growth in 2012 and 2013.

4. David Jones is considering a sale of its flagship Sydney and Melbourne CBD properties, as profit slumped amid a worsening environment for traditional retail.

Net profits in the year to July dropped 39.9 per cent to $101.1 million, down from $168.1 million, the company said this morning, in line with earlier guidance. Avoid this one like MYR…and FXJ and TEN for that matter!
5.China /Japan issues continue to get worse…Not a positive.

6.Tragic news from the UK with two policewoman deliberately ambushed and killed..

7.Man City get beaten in Champions League by Real…Ronaldo the man!

8.NYSE volumes pathetic as the market waft about…Combine the Sugar Hit of QEIII and Apple share price rise and it’s a Toffee Apple …usually rotten in the core in my experience!

9.Lonmin raises wages in Africa by 22%…now on 2.44 a day according to the Rinehart Cowboy who has been a little quiet of late!! Unusual I know…

And finally….

 

Two guys were out walking their dogs on a hot day, when they pass by a pub. The first guy says “Let’s go in there for a pint.”

Second guy, says, “They won’t let us in with our dogs.”

First guy: “Sure they will, just follow my lead.”
He goes up to the pub, and sure enough the doorman says, “I can’t let you in here with that dog.”

 He replies, “Oh, I’m blind and this is my seeing-eye dog.” The doorman says, “Ok then, come on in.”
The second guy sees this and does the same thing. He goes up to the pub, and the doorman says, “You can’t come in here with a dog.”

He replies, “I’m blind and this is my seeing-eye dog.”

The doorman responds, “You have a chihuahua for a seeing-eye dog?”

The second guy stops for a second, and exclaims, “They gave me a chihuahua?”

Clarence

xxx

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