Morning all,

Yesterday’s profit taking was natural..the market has run hard after the fiscal bluff resolution so we need a pull back especially in things like CBA which were getting silly in price..expect more profit taking in the next few days as smart punters who played the Santa Rally take their profits and run. I would expect our ASX200 to fall back to 4650 before finding some support.

Few thoughts …

Iron Ore is a two year high!!So much for all the analysts who were predicting 70-80 bucks …and Peter Garrett wants economics taught in primary school…scary ..a nation of economists!!

And this has got to be the stupidest thing from the US..they are thinking of creating a $1 trillion Platinum coin…now all the Platinum that has ever been mined is a 25m cube,about 16 tonnes….now to be worth $1trillion you would need 18,000 tonnes…….apparently they can just say that’s what it is worth!!!and that fixes their debt ceiling problem…really?Thought I had missed a few months and it was April 1^st!!

Euro unemployment hit an all time high , 19m people..up 2m from last year!…well done guys…one of the bozos whose hand is all over the great Euro experiment declared the crisis over!!And interestingly the IMF ,what a great bunch of guys they are, who were huge advocates of austerity and massive spending cuts, modelled that for every 1 dollar cut, the economy would suffer by only 50 cents…well that proved to be disastrously wrong..they actually suffered by $1.50! Another great piece of work by the economic elite!

Alcoa is the first US company to report and looks ok from first glance so that will help sentiment there as we go into the bulk of company reporting.

”Alcoa, the largest aluminium producer in the US, expressed cautious optimism that demand for the metal will continue to grow in 2013, helped in part by global growth in the aerospace and construction markets.

The company posted a fourth-quarter profit on Tuesday, in line with Wall Street expectations, and handily beat expectations on revenue, helping calm investors’ nerves after a rocky 2012”.

So what to do to make a quid in this market?

If you are cashed up and worried that you have missed the boat ,the next few days may be a chance to start accumulating..despite all the monsters hiding under the bed..they will stay there for a while…elections in Italy and Germany this year will throw the focus back to Zombieland but after the pullback we will grind higher…banks will benefit from Basel requirements easing, resources will  benefit from higher prices and Chinese rebound..yield will still be chased..

Stock to buy though is BRU..has been steadily falling over the last month or so ..around 2.20 it’s a buy..short sellers have been active as there is a warrant expiring that is driving them down but expect a bounce soon back up to 2.70/280

And finally……

A woman hears from her doctor that she has only half a year to live.  The doctor advises her to marry an economist

The woman asks, “Will this cure my illness?”  The doctor answers, “No.  But the six months will seem like a lifetime.”

Back to the normal format next week when I get some inspiration!

Clarence

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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.