Morning all,

Another good day yesterday as banks and resources pushed ahead..hard and soft tacos…what an idea!…today we will be boosted by the CBA result which on first glance is pretty impressive and you can see why they are the top bank and trade at a premium.The presentation is very slick and polished and the numbers are pretty good. What is very impressive is their technology..I find this ironic as Government institutions as CBA once were are not renowned for their IT..so the fact that these guys are just way out in front is testimony to their good management and foresight..I know it’s been a long time since they were Government owned but when you look at NAB etc these guys really are quality…anyway record profit..big fat dividend etc ..what is not to like…

Expect to see the market continue on its merry way today.5200 here we come..the big movers are going to be the Resource stocks and especially Iron ore as the price remains stubbornly very positive…now this is a good thing..except for those predicting its demise..they have a massive amount of egg plastered across their faces at the moment and as usual some are now moving their forecasts..not sure what is the point of forecast if they just move them to reflect reality in the end…the revisions will fall through into upgrades for our big three BHP,RIO and FMG…so expect firmness to continue.

CSL also reported today record numbers  with a profit up 19% earnings up 24% and dividends up 18% and in US dollars too..so how good is that..and possible share buy backs ..another good result…usually results season is good at the start and bad at the end ..so far we have seen some good numbers and those predicting dire results may have to wait longer..even BKN released some good numbers..who said mining services were all dead!

Expect another good day with positive leads all round..well except Gold.Now we have all stopped listening to the Politicians we seem to be much happier about the market..it’s a weird world but since we had Kev13 the market has rallied 11%…and despite Abbott’s best endeavours to stuff it up he must be a shoe in…the gloss is wearing off Kev13..just look at the MMS price to see the current betting on who will win!No Kev13 no FBT change ..simples…

Idea of the Day

Now a few weeks ago I talked about how to benefit from the Zombie rally..the ETF IEU was my pick…in simple terms an ETF is designed to mirror the performance of a certain asset..they have got very popular in Europe and the US …not yet here but it will happen..some mirror  Gold,some China,some silver,some the ASX indices .The IEU one mirrors a basket of Euro trash and UK companies…last night we saw once again Zombieland soar to records ..now this puppy is priced in Aussie dollars so a lower dollar and higher Euro stock markets is what you are after…

For those chasing the rainbow..iron ore stocks will continue to move ahead..5200 very doable..may even be today!!!

Things to make me go mmmm!

1.

2. British Prime Minister David Cameron has written an article in the Daily Telegraph in which he has called for all UK communities to show support for the fracking industry, and welcome the coming shale gas boom, stating that such a boom will lower energy bills and create jobs….good for AJL…

3.REA Group has cheered investors with a 26 per cent jump in full-year net profit, and indicated it can continue to maintain a strong performance. The operator of website realestate.com.au generated a record net profit of $109.7 million for the year ending June 30.The company is now the largest media company in Australia in terms of market capitalisation, valued at $4.33 billion.

4.JB Hi-Fi could outperform its own forecasts again this financial year after the company reported an 11 per cent gain in annual profit, but analysts warn the company could face trouble further down the track. The result, announced on Monday, was ahead of the company’s own guidance and market expectations and included a 3.2 per cent rise in sales from existing stores during the second half of the financial year.

5.Obviously Apple is an Icon and news last night that another iCahn had taken a bit e of the Apple was enough to get the share price in a stew…hitting 489 after hours ..carl iCahn revealed he had talked to the Cook and told him he had nearly 5%!…in this new social media world..he bought the shares then announced on twitter that he thought they were cheap and so had bought them…instant profit ..

6.Another Fed chief was out and proud last night with Atlanta’s President Dennis Lockhart, who has backed the central bank’s monthly bond purchases, saying today policy makers may start to slow buying at any of their next few meetings amid “uneven performance” by the economy.

7.And retail sales were a little disappointing so the tapering will continue? Data today showed retail sales rose 0.2 % in July, following a 0.6 %t gain in June that was larger than previously reported, according to Commerce Department figures. The median forecast of 81 economists surveyed by Bloomberg called for a 0.3 %  advance.

8.Not sure this has anything to do with my daughter being there but… The Greek island of Santorini, one of the country’s premier travel destinations, was hit with a sweeping power shortage on Tuesday after a fire at the island’s main electricity plant, officials said….

In better times!

Now !…like the rest of Greece where a 4.6% contraction in GDP is a good thing!!!

Still the rest of Europe is doing ok..especially Germany… Germany is the only major euro-area economy to have recovered lost output since the 2008 recession and Germany, Belgium and Slovakia were the only three to grow in the first quarter. Cyprus’s economy shrank 1.3 percent in the first quarter during bailout negotiations, while the Greek economy shrank at an annual rate of 4.6 percent in the three months through June. Greece’s economy has contracted about 25 percent since 2008.

www.zerohedge.com

9. Construction giant Leighton Holdings has more than tripled its half-year profit.Leighton’s net profit of $366.2 million, for the six months to June 30, was up 220 per cent from the previous corresponding period’s $114.6 million.Revenue for the same period rose by six per cent to $10.5 billion, from $9.9 billion.

10.A spare a thought for the overworked analysts at this time of year…as the results keep on coming they are stretched to breaking point..at least twice a year they earn their money!

11.And scientists have been researching what happens in the thirty seconds after the heart stops pumping oxygen to the brain..apparently it like watching Jaymes Diaz at a press interview..

And finally…..

An  old guy goes to his doctor for his physical and gets sent to the  Urologist as a precaution.

When  he gets there, he discovers the Urologist is a very pretty  female doctor.

The  female doctor says, “I’m going to check your prostate today, but  this new procedure is a little different from what you are  probably used to.

I  want you to lie on your right side, bend your knees, then while  I check your prostate, take a deep breath and  say,    ’99’.

The  old guy obeys and says, “99”.

The  doctor says, “Great”, now turn over on your left side and again,  while I repeat the check, take a deep breath and  say, ’99”.

Again,  the old guy says, ’99’.”

The  doctor said, “Very good”.

Now  then, I want you to lie on your back with your knees raised  slightly.

I’m  going to check your prostate with this hand, and with the other  hand I’m going to hold on to your penis  to  keep it out of the way.

Now  take a deep breath and say,

’99’.

The  old guy begins,

“One…

two…

three…”

Have a great day

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.