Morning all,

As ‘Zombieland’ fell last night the chief drug dealer of ‘crack stimuli’ and ‘hopium’ was on stage and happy to keep supplying the goodies that the markets crave.as a result the Dow bounced and in more good news the Gold price surged …Uncle Ben gave the market what they wanted to hear..he saw it better to keep the markets on crack cocaine than start to pull their supply..apparently the benefits of crack far outweigh the downside..so the QEIII will continue.

There was also a number of good economic numbers from the States on housing and consumer confidence so everyone happy to ignore the looming budget cuts…

Our market is expected to remain in a buoyant frame of mind with the usual suspects to the fore. Expect a 20 up day today after yesterday’s loss.5050 seems to the short term top though at the moment and risks do remain.

Some time ago I wrote about the 100 dollar packages..100 bucks bought you all Four Aussie Banks in September 2011…100 bucks bought you BHP,RIO and FMG too…now let’s face it the banks has been a monster trade..it’s up over 50% since then and that’s not including dividends so you have all done very well, in the words of young mister Grace..so is there still value in buying the 150 buck chuck in the big four..answer probably but the easy money is gone..the yield on this baby though will keep it solid..and these guys are still making off like bandits..no competition and a stable economy is a recipe for success…but the yield is now looking sub 6% so caution for the guys looking for easy capital gains..maybe a period of stagnation and underperformance is in order..unfortunately my tip to buy the resource basket is now so flash but still positive..sideways though at best…at some stage the trade will be sell the bank basket and go resource basket ..BUT NOT YET!

Idea of the Day

As the Gold price has defied the death cross on the charts(where the 50 day average falls below the 200 day MA) and has rallied maybe it’s time to have a look at some of the better goldies out there..

 

 

Obviously the big ones will run first like SLR,SBM,NCM,KCN but maybe a good time to look at one of my favourites in BDR..good buying at 82 cents…get in there Mortimer!!

Things to make me go all Titanic II ..go Clive..Go Jack and Rose!

1.Big Clive is back in the headlines launching the new Titanic as he assures us that due to global warming there are not so m any icebergs in the Atlantic..reassuring..and they have lifeboats this time…$1m for a cabin…may have to save up. Apparently the big attraction is spending five days with your wife.

2.Confidence among U.S. consumers jumped more than forecast in February as American’s adjusted to a higher payroll tax and signs of a recovering housing market spurred faith in the future.

3.Purchases of new homes in the U.S. jumped in January to the highest level since July 2008, showing the industry will keep adding to growth in the economy.

4.Home prices in 20 U.S. cities rose in the 12 months to December by the most in more than six years, a sign the housing-market recovery is strengthening.

5.JPMorgan Chase, the biggest US bank, will eliminate as many as 19,000 jobs in mortgages and community banking through through 2014 as Chief Executive Officer Jamie Dimon trims expenses.

6.UBS analyst has joined with others from Westpac to Deutsche Bank in predicting cheaper prices in the second half, his estimate is lower than most. Westpac senior economist Justin Smirk(great name!) and Bank of America expect $110 by year end.

7.Chevron’s surprise $US349 million farm-in to Beach Energy’s shale gas exploration venture in the Cooper Basin has loosened tongues about other similar deals said to be under discussion by some of the industry’s big names. Over in the west, BHP Billiton is said to be mulling a deal with Hess that would incorporate the US company’s Canning acreage and potentially extend to its exploration in the Beetaloo Basin in the Northern Territory.-Now call me old fashioned but this has got to be good for the biggest player in the Canning Basin BRU..still like this stock and despite the naysayers selling this one aggressively to have a short position of over 17m shares I reckon they are wrong and will be punished for their sins.There seems to be a belief that they need to raise money and that will fill in the shorts..i suspect a deal with a large player on a farm in or strategic placement may be a surer bet..Like this stock and things are getting interesting in the Shale space..Go Eric!

8.The Italian election result is not a one day thing ..this will have ramifications for the great plan in Zombieland…if voters reject the measures that are imposed upon them by the bureaucrats where will the carnage end…57% of Italians effectively voted against the Austerity that was imposed..this does not bode well and we will hear more of this as ‘Whatever it takes’ is tested in the coming months.

9.Results yesterday from Vodafone conform what we knew all along..they are useless and are losing massive amounts of customers to Telstra..still the one to own and 6% fully franked yield..what’s not to like…

And finally to see if you have read this far..suspect not ….by in a Euro theme..

HEAVEN is where:

The police are British

The chefs Italian

The mechanics are German

The lovers are French

and it’s all organised by the Swiss

 

HELL is where:

The police are German

The chefs are British

The mechanics are French

The lovers are Swiss

and it’s all organised by the Italians!!

 

Back on Sky TV this lunch time talking rubbish as usual…

 

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.