Morning all,

Nothing really positive to start the week, more news out of ‘Zombieland’ on France rejecting Austerity whilst looks like Italy will too. Poor old moaning Merkel won’t be happy with her friends. The US sequestration has kicked in and will gradually hit he economy over the next six months. There is still time to sort out something despite the deadline passing but there certainly doesn’t seem the urgency this time.

After being short the industrials ,the hedge funds have been severely punished however the long short funds have now found a sector to pummel further and that’s the resource sector. Expect to see more pain to come as the funds use a short position in resources and especially Golds to run their longs in Banks and Industrials. If you are a holder expect some more pain. It’s probably too late to sell some of these but at some stage it will be worth looking at this sector again..but not yet!!!

Few big companies ex today like BHP 55cents so the market will be under some pressure but the buy the dips mentality will pervade although probably only in the industrials..15 -20 down today banks and financials still very firm..unfortunately!!

Idea of the Day

Channel TEN continue to perform well and my idea to buy them on Friday was around 34…not going to chase them up as I only though they would get to 40 so buying at 37 is hardly a great return…lots of press on them at the moment with Stokes buying in and Adam Boland from Sunrise joining the team..this stock will take more than a day to turn around so stay patient and buy on the down days at more like 34  and under…Not going to chase it today..I may regret it but like buses there is always another one along soon so more good ideas to come!!I hope…

Things to make me go mmm…

RIP Qantas former Chairman James Strong..he of the bow ties. Didn’t even know he was that old or sick so sad news indeed…as was Peter Harvey .

Reports continue to swirl around the media about how the banks are making off like bandits with margins on their home loans..even ‘Weekend at Bernies’ Fraser has got in on the act today..suggesting they are putting shareholders ahead of customers…anyone surprised at this!~!!

RBA meeting tomorrow but expect no change after they have talked the Aussie down in the last six weeks…bout time I suspect.

Nick Curtis to step down from his role at LYC…thought he would have hung on longer to see it through this production phase but not to be..not sure if that’s a positive or negative.

The Standard & Poor’s 500 Index has returned 24 percent on average in years it’s risen in both January and February, a bullish sign for 2013, according to S&P.

AGL Energy and other gas companies could sue the NSW government for millions of dollars in compensation if it pushes ahead with a ban on coal seam gas activities near residential areas.

BHP Billiton has recorded a $US174.4M loss at its Petrohawk Energy shale operation in the US. A loss on derivative contracts and sharply lower natural gas prices weighed on results, despite an almost doubling in crude oil output. The loss, reported in Petrohawk’s annual report released on Friday, compared with a $US174.1M profit for 2011.

Increased government red tape is crimping mining growth in Australia more than in other developed nations, a survey of both large and small global miners has found.

The hearts and minds of the Western Suburbs are now up for sale as Julia pledges new roads in her mini election campaign….its gonna be a long time til September!!!

And in the US it now seems Tuna isn’t Tuna after DNA tests suggested that 59% of White Tuna is actually a fish called “Escolar”..now due to a metabolic effect the fish has it can cause explosive orange diarrhoea…nice…think I prefer the horse meat please!!

And finally….

A guy enters a bar carrying an alligator. Says to the patrons, “Here’s a deal. I’ll open this alligator’s mouth and place my genitals inside. The gator will close his mouth for one minute, then open it, and I’ll remove my unit unscathed. If it works, everyone buys me drinks.” The crowd agrees. The guy drops his pants and puts his privates in the gator’s mouth. Gator closes mouth. After a minute, the guy grabs a beer bottle and bangs the gator on the top of its head. The gator opens wide, and he removes his genitals unscathed. Everyone buys him drinks. Then he says: “I’ll pay anyone $100 who’s willing to give it a try.” After a while, a hand goes up in the back of the bar. It’s a woman. “I’ll give it a try,” she says, “but you have to promise not to hit me on the head with the beer bottle.”

Have a good Monday 

Clarence

XXX

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