Morning all,

Yet another rise on Wall Street last night seems they can do no wrong. Good economic numbers are celebrated as signs of the revival and bad ones as signs that the pump priming will last forever. Two bites of the Cherry. Last night manufacturing wasn’t that flash, in fact last news Zombieland news wasn’t to flash either with France in another recession. Encore, Encore. The UK did forecast better times ahead but then again ,who are they kidding

Yesterday action in our market was pretty interesting. Many commentators, me included were predicting an up 20 kind of day, however the reality was somewhat different as overseas hedge funds launched a two-pronged offensive not only on our lovable Aussie Dollar but also our futures market. Around 11am the market was hit with a wave of selling which pushed the hitherto firm market down around 45 points. It happened so quickly. The resources which were already weak just got weaker and the bubble banks were clobbered as well.

Expect today to see a little tentative buying of industrials but resources again under the knife so things will still be under a cloud..Gold fell big time last night so no good news there and Iron Ore and Copper also in the recycled sin bin!

Looks like the index is backing and filling still expect to see the market struggle in the next few months…

Idea of the Day-Actually three ideas—MOC,APN and US Dollar Earners!

Currency wars are all the rage and the companies that will do well from a lower dollar are a good place to be at the moment..that does not mean resource stocks I am afraid..

Our Media analyst has just issued his verdict on APN which as some of you know I like..I continue to like it and he has a target of 55 on the stock..we shall see.

 

MOC has been a spectacular performer in recent weeks..I have been talking about this one too on TV and in this email ..I like the stock but was starting to worry that it had run too far given the yield play nature of the stock rather than growth…however the thing that I had forgotten or rather had slipped to the back of my mind was the corporate appeal..for anyone looking to enter the mortgage market with a large physical and digital footprint this one may be a good way to go..they pay 13 c in fully franked divs and are conservatively managed with a great brand name…maybe some one like MQG would be interested perhaps…certainly the stock is not this strong on yield alone so watch this space!!

 

Things to make me go Come on you Blues!!!

1.Chelsea beat Benefica 2-1 to win the Europa Cup!!!last minute goal sealed the deal…amazing stuff…sorry had to mention it!

2.Apple is down 8% in the last three days as the US markets continue to defy the odds…and now subject to a Senate hearing on off shore tax avoidance..plus Iphiones just aren’t selling..hardly surprising given the battery on the iphone 5 lasts about a minute at best whereas the Samsung lasts days!!!

3.The US Government has started cracking down on the Digital Currency Bitcon with moves on one of the exchanges Mt Gox…seems they don’t like competition in made up fiat currencies after all. There can be only one!

4.News that a few more key Billagone employees have left does beg a question, why would you want to buy this train wreck. I have never seen anything like this takeover and the Billagone board should be sued by every shareholder for ineptitude and gross misconduct. It’s a joke..most companies try to mount a defence and talk the price up rather than lie down and have their tummy rubbed until they fall asleep.

5.HSBC will cut another 14,000 jobs across its global empire as part of an effort to improve shareholder returns and adapt to a tougher regulatory and economic landscape. CEO Stuart Gulliver said the job losses will help the bank save up to $US3 billion a year, adding to the $US4 billion already removed from annual costs since he laid out a new strategy for the bank two years ago.

6.UGL, Sedgman: Shares in engineering firms UGL and Sedgman were hammered in trade yesterday after both issued profit warnings, blaming a collapse in new project investments, delays and changes to cost-management initiatives by the major miners.

7.Steve Miller, the acting commissioner of the Internal Revenue Service, has resigned after being asked to leave amid a scandal over the agency’s scrutiny of nonprofit groups…go on take the money and run!

8.Iron ore has stumbled into bear market territory after another fall on overnight markets..its now 126.40..long way from that 158 level of a few months ago..looks like the death of 1000 cuts rather than Gold which is suffering a far quicker fate!!

9.I read an interesting article recently about the US Shale Fracking industry..now we in Australia are dead against this new technology but it really has been a big game changer for the US economy…cheap energy suddenly makes a whole lot of manufacturing possible,profitable and very doable…now of course we don’t have that pesky problem to worry about as we have no manufacturing left apart from three cars a week that no one wants but this is shifting the power base once more to the US as China tries desperately to acquire cheap energy..maybe the US is not so dead after all!!Especially now thw price of labour has fallen thanks to the recession….game on?

 

And finally….I give you Team Montenegro for the Euro Vision Song Contest!!You can bet on this with Tom Waterhouse by the way!!!

 

Thanks http://www.telegraph.co.uk for this gem!!

Says it all really!!!!!

Have a great day

 

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