Morning all,

Sad news today that Ray Manzarek has died..for those of you who don’t remember Ray, here’s a hint…he is now ‘Breaking on through to the other side!’Love your work Ray!

Anyway, last night we saw the FTSE hit levels not seen since 2000!!DAX in Germany also hit a record high…Zombieland must be fixed!!!..I find it strange that the UK which is permanently in recession and likely to remain so, is trading at a 13 year high..shows how there is little choice as to where to put your money when the BOE or whichever Central Bank is pumping free money into the system..shame the money doesn’t actually find its way into the real economy…still trickle down is the plan!!

Anyway after yesterday’s good run as the banks and BHP pushed higher expect a more muted day today…now everyone hates Gold at the moment everyone is predicting it will fall to 1000 bucks a tonne but I remember when it got to 1850-1900 and everyone loved it!!Sometimes it takes a brave man  or woman to see through the posturing on CNBC or Bloomberg and actually go against the trend but that’s where the big money can be made…now I don’t believe we have seen the re-emergence of the gold rally by any means but sometimes you have to swim a little against the crowd…and hope you don’t get caught in a rip of course!!Some of the Gold stocks have been so whacked out that maybe it is time to start sifting through the wreckage…not all in but at least start to think about it…there are a lot of shorts in this space and a lot of funds liquidating!!

Expect a plus or minus 5 day today …more a holding pattern today…

Idea of the Day BUY AWE

Our oil analyst Scotty is pretty good on these things and yesterday AWE upgraded their Oil estimates for Ande Ande Lumut! Positive news and the stock is trading well below our valuation of $1.95..the big hope is that now this is out the predators will be circling to do a deal with the asset and this will give AWE a good farm out deal…this will be the catalyst for a rerating….

Don’t forget out Technology conference next week if you are interested in attending..it’s free and always good to see companies up close…and would love to see you!

Things to make me go….Riders on the Storm!

1.More rumblings last night in how the Fed hopes to wean the patient off life support without them dying…tax receipts are rising as spending slows due to budget cuts so according to UBS chief astrologer Drew Matus, “If the Treasury reduces supply as the Fed reduces purchases of Treasuries, then your net impact on yields should be left unchanged.” That’s going to be an interesting juggling act.

2.Last night one of the ratings agencies revealed that a further downgrade to US ratings was possible if it didn’t sort it’s budget out!!Enough to upset the Dow.

3.Tonight is Tuesday in the US and for the last 18 Tuesdays the market has risen …expect a rise tonight then…

4.Gold had a good night last night as the US dollar came under fire from the downgrade talk…Aussie dollar also rallied as well…Silver was halted from trading four times last night!!Big plunge then a big rally!!

5.Another day another downgrade!!!This time Transfield has fessed up ..expect a smacking today!

6.Transfield Services has slashed its profit forecast to as low as $62 million for the year to June in the wake of slowing resources spending.

The company now expects to post a net profit before amortisation charges and write-offs of $62-65 million, substantially less than the $85-90 million figure flagged earlier.The company also announced it would shed 113 jobs.

7.Yahoo promises “not to screw it up.”as it pays $1.1bn to buy tumblrr…income $13m last year…good luck guys…its hip to be square!!

8.CBA Shares closed at $73.49 on Monday, setting a new peak for Australia’s biggest bank, as investors continued to buy in despite concerns the stock is overvalued.

9.A 49% surge in Elders’ shares triggered talk that long-awaited asset sales were finally here. Elders is expected to tell the ASX today it has no idea what was behind Monday’s rally, which generated its second speeding ticket in as many weeks from the ASX. Elders is understood to be close to striking a deal and could reach an outcome by the end of the week.

10.News Ltd is set to announce on Tuesday morning the sale of NRL club Melbourne Storm to a consortium of UK-based businessmen. It is understood News will hand over the club to the consortium for free or a small token sum.

11.Few things happening today

Minutes of Reserve Bank of Australia monthly board meeting

Treasury Secretary Dr Martin Parkinson to address Australian Business Economists’ lunch on ‘Budgeting in Challenging Times‘

12.Whilst in the US on Wednesday ‘Benny and the Inkjets’ front the Senate to talk about the economy and QEIII, so traders on edge for news on him taking the dummy away from them..

13.And Government bonds start trading on the ASX today..can send you a round up of rates etc if you are interested.

And finally….Thanks Hans!!

A guy goes into the confessional box after years being away from the Church.

He pulls aside the curtain, enters and sits himself down.

There’s a fully equipped bar with crystal glasses, the best vestry wine, Guinness on tap, cigars and liqueur chocolates nearby, and on the wall a fine photographic display of buxom ladies who appear to have mislaid their garments.

He hears a priest come in:

“Father, forgive me for it’s been a very long time since I’ve been to confession and I must admit that the confessional box is much more inviting than it used to be”.

The priest replies,

“Get out, you idiot. You’re on my side”.

‘This is the end, my only friend ,the end.”

Clarence

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