Tags

, , , , , , , , , , , , , , , , , , , , , , , , , , ,

Morning all,

Another up night on the Dow despite the fall of the Apple. Isaac Newton would have indeed been pleased.Gravity eh..happens to the best of them!!There has been a massive divergence between the Apple price and the US market so if the price does stabilise and try to go up which I believe it will, there will be implications for the US market. As I wrote yesterday there are three things in life that are certain and the Dow going through its all time high is one of them..There is a tsunami of money sitting in safe havens getting no interest that will flood equity markets as punters realise that they are missing out!!

One stock that has gone ballistic and we talked about the other day is LNC. In November it was languishing at 60 cents now it is knocking on the door of $3.00…that’s the stuff fortunes are made of and that’s the stuff that drives the investor back to the market..when I say investors I really mean punters …anyway the themes remain the same with Banks and TLS leading the charge..good numbers from China yesterday helped resource stocks and that looks set to continue ..all except Gold which looks like the crisis premium is oozing out the side…still the companies themselves are not expensive and never ran when the Gold price was soaring…Good to see our market pushing ahead yesterday to breech the 4800 level…I suspect there is more to go as the FOMO, remember that, kicks in..volume is picking up and that shows that the shorts are in their covering..now you don’t need to be actually short shares to suffer ..being long cash and uninvested is nearly the same..funds that are cashed up and underinvested will suffer and will be forced to buy shares as it goes up or lose money and performance..no performance= no job..simple!!!

Get back in there and buy Mortimer!!

Idea of the day

I know its dull but the same old stocks are doing well and with interest rates around the World not going anywhere but down and the Central banks playing my printing press is bigger than yours, the Banks still look atttractive..said on Monday that if you didn’t have NAB in your portfolio you didn’t like money..still applies!!

LNC has been a prime example of what happens to a stock that is so out of favour that the market has forgotten about them…..only took a few little announcements to put this back on the Radar and then whooshhh!!Not saying the market will discover every lame duck and reward them when they finally get their act together but still believe that LYC falls into that category…also may be time to look at BBG again as they drift back down…two 1.10 bids on the table and stock at 95 cents ..we shall see…but the market has gone vertical for the last two months…it will start to consolidate but any pullback will be brief pre the confessional season …

Things to make me go all Australia Day…

1.Was on the Telly this morning and the head of OZL blamed high frequency traders for the fall in the share price yesterday..really how about bad production numbers and higher costs..KCN  were also quick to point the finger at the Traders for being really nasty to their share price..you know what guys, better management ,cost control and delivering on your promises may be a better solution..try it sometime it does work!!

2.The Federal Reserve pushed its balance sheet beyond $3 trillion for the first time this week while undertaking open-ended purchases of Treasuries and mortgage-backed securities to combat 7.8 percent unemployment.

3.Was watching the Tennis last night as the Women’s No 1 had the dummy injury and had to go off for ten minutes to regroup…dreadful example of sportsmanship…Arm Liestrong would have been proud..poor old 16 year Stevens just sitting there waiting for her to return remarkable cured!!

4.Microsoft numbers due out…if there is one stock that you buy this year in the Overseas markets its Apple at 450 ..its a steal…really believe this and have been bearish since 700 on the release of the iphoney5…I say iphoney cos its really no better than the iphoney 4 or 4s..and it lost all my pictures!!!

5.Did you know Spain has 6m people unemployed..not that is just a number but it’s like the population of Sydney and Brisbane not working!!I believe that this is truly scary and thankfully we are blessed with minerals and agriculture but I feel so sad for a whole generation of young Zombie’s that are never going to work!!This is the stuff of major civil unrest..I am just amazed it hasn’t happened yet…UK looking good too as they stare down a triple dip recession..sounds like a new Magnum flavour!

6.There is no doubt the World is improving..better unemployment numbers from the US,better manufacturiong from China and even slightly better numbers from Zombieland..as I have said before what is not to like at the moment..there are still things out there yielding over 6 % with franking!!Boring, safe I know but still compelling!!Even Roubini is getting more bullish..things are getting less worse he says!!

7. ITALY’S MONTI SAYS NO OVERSIGHT FAILURE ON MONTE PASCHI loss!!

Translation, it was not the Bank of Italy’s fault, and that of its then-head, Mario Draghi, that it failed in supervising the iconic Sienna bank. Because, you see, it is all the evil management’s fault. The same “management” whose Chairman just happened to be head of the entire Italian banking lobby. Until yesterday.

8.If you want to get a more negative view of the World I would strongly recommend www.zerohedge.com as required reading…

9.Today in the market….ResMed releases first half results …The following companies hold general meetings: Coal of Africa, Corazon Mining, Coretrack, GoConnect, Hire Intelligence International, Intelligent Solar, Nido Petroleum, Penrice Soda Holdings, Sietel, Stirling Resources.

10.Flooding in Queensland again..may impact Coal again but will have to see how bad it gets..Rockhampton looks wet !!

11.VIX still under 13%..amazing..no risk anywhere..despite huge moves in tech stocks this week..witness the Apple crumble!!

And finally……….

My wife was at the beauty shop for two hours. That was only for the  estimate. She got a mudpack and looked great for two days. Then the mud  fell off.

The Doctor gave my friend six months to live. He couldn’t pay his bill so the doctor gave him another six months

Doctor: “You’ll live to be 60!”

Patient: “I am 60!”

Doctor: “See!  What did I tell you?”

Happy Australia day everyone…remember how lucky we are not to live anywhere else!!

 

Clarence

XXXX

 

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.