Morning all,

What were you doing 25 years ago today? Sometimes it’s hard to remember but this day was pretty significant back then…19^th October 1987…anyone remember it now? Well that was the day that the Dow dropped 22%…Scary indeed and in hindsight partially to blame were the computer trading programs and derivatives…the market has moved on now with barely a nod to this date and I have seen few mentions of it. I was a market maker trading options on the London Stock Exchange back then..I had flown to Amsterdam on business(at least that is what I  pretended it to be) on the Thursday night just before the big storm hit the UK which decimated the South of England and rendered the Stock Exchange closed! Had a great weekend and woke up to the Dow falling and all hell broke loose on the Monday..happy times…

So here we are 25 years later and once again computers are playing in the markets ..in fact now more than ever..yesterday we saw a very manipulated opening in the big A-C stocks as the Index options and futures for October expired. Lots of fun and games with the settlement price some 25 points higher than reality..ANZ got pushed up a dollar at the opening and then collapsed in quick order…someone made a lot of money on this..of course the ASX says it is the responsibility of ASIC whilst ASIC says phone the ASX!!And so it goes…anyway yesterday did feel like a bull market and lunchtime Chinese numbers helped too with GDP in line with expectations but Industrial production better than expected…Go China!

Volume also picked up yesterday…expiry day does that ..but still the first decent day for a while…overnight we saw a bit of consolidation so expect that today but Mining stocks will be underpinned with buyers lurking!

As far as strategy goes it may be the beginnings of the great switch…switching from safe yield assets to more risk…Banks have had a great run and with figures looming they are bound to stay buoyant up til then especially when they have large dividends in them but the big gains are behind us whilst BHP,RIO,STO etc and other resources have potential upside from a bit of catch up..WPL released good  numbers yesterday showing that the new man Peter Coleman is delivering operationally and things looking positive.

Expect our market to fall away a little today after such a good week this week…time to consolidate, but be assured my friends this baby is going to 4700 by Xmas…provided nothing unexpected happens…15 month high peeps… 

If you find the BBY AM report useful please let me know as from next week I will only send it if requested!

Idea of the Day:

AGO:BUY at 1.58 ish.

News yesterday from them that they have secured a new loan of 320m bucks plus production upgrades and cost of production heading down put this one looking attractive for a run to 2.00..currently 1.58…if the Iron Ore price stays around these levels this is a goer!

Things to make me go all..  UN Security Council

1.Google has a shocker..results released early and then the stock fell like a brick ..disappointing ad revenue and then some…is the king dead..no but markey may have got ahead of itself and they are trying to do too much perhaps in the googlesphere!

2.faceplant drop below 19 bucks..Apple numbers next week…expect to see how much Samsung is hurting them..I suspect a bit!

3.Sylia Kristel dies…another blast from the past…dead at 60 throat cancer..too many cigarettes!

4.Jaimie Packer seems to be winning in his quest for a second casino licence in Barrangarro ( which is aboriginal for  ‘lots of money to be made boys’)

5. Mao extolled his country to produce more steel than the US and the UK..would be very happy with this statistic!….China now produces seven times more steel than the UK and the US combined, and accounts for nearly half of global output of the metal. The country’s share of global imports of iron ore, a crucial steelmaking ingredient, has increased from less than 10 per cent in the early 1990s to about 65 per cent now.

6.Zombieland summit as the Greeks take to the streets..the juggling act continues in Greece..how to get an economy moving before the citizens take matters into their own hands and topple the Government and tell ‘Moaning Mertle’ where to stick her Euro!

7.More mining companies cutting back on staff..MGX and AGO looking to cut contractors ..TEN looking to sack journalists…

8. The man Britain’s financial press christened “The Wizard of Oz” – multi-millionaire hedge-fund boss Greg Coffey – is calling it quits amid markets that have proved difficult for even the most nimble money manager.

9.Australia wins a seat on the Security Councill….playing with the big boys..and it only cost $25m to get the chair…should have gone to Officeworks ..much cheaper there.

10.Finally getting sorted here..and so much better at BBY..it’s a proper firm!!

And finally….

A guy dials his home number from work. A strange woman answers. The guy says, “Who is this?”

“This is the maid,” answered the woman.

“We don’t have a maid!”

“I was just hired this morning by the lady of the house.”

“Well, this is her husband. Is she there?”

“Ummm…she’s upstairs in the bedroom with someone who I just figured was her husband.”

The guy is fuming. He says to the maid, “Listen, would you like to make $50,000?”

“What do I have to do?”

“I want you to get my gun from my desk in the den and shoot that witch and the jerk she’s with.”

The maid puts down the phone. The guy hears footsteps, followed by a couple of gunshots.

The maid comes back to the phone. “What should I do with the bodies?”

“Throw them in the swimming pool!”

“What pool?”

“Uh….. Is this 832-4821?”

 

Back on Sky TV this afternoon at 5.30..that’s three times this week!!!they might have to start paying me!!

Have a great weekend

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.