Morning all,

Seems I can’t even go to the Dentist yesterday afternoon without the market falling apart…couple of reasons..Taper talk and the lack of action from the Chinese Plenum…seriously, when did a bunch of Politicians ever get together and match the rhetoric with action…hardly ever..anyway it does not seem to matter to the US where the Taper should have the most impact as their market continues to bubble around the all-time highs..minutes ago new Fed Chief Yellen (not drowning) announced that the US economy was not creating enogh jobs for her liking..except hers of course ..and as such then it will be free money forever until they can employ all the Walter Whites in the US.

Here are her two main points

*YELLEN SAYS ECONOMY, JOBS `PERFORMING FAR SHORT’ OF POTENTIAL

*YELLEN: ECONOMY MUST IMPROVE BEFORE FED LESSENS STIMULUS

 healthcare-gov-enrollment-funnel yellen gov

 

Anyway the upshot was the US market closed at another all-time high. If they aren’t worried why are we!!

 

The other big news was the Old Lady of Threadneedle Street (Bank of England) raising its forecasts for the UK economy.Unemployment to hit 7% in 4th quarter of 2015 currently down to 7.6% and inflation under control..all good there then…should continue to help NAB and the UK pound..sound as!

 

Today we will get a bounce for sure..Banks and financials have been front and centre of the firing line only because they have risen so far its hard to see them going higher…those astute readers out there and I know there is at least one of you will remember that I have written that the next leg of the market run will have to be resources and non-banks as they are pretty toppy…trouble is they are 26% of the ASX 200 so pretty much dictate the market with BHP ,RIO and TLS! Now my philosophy is now Buy the Banks and Die with the banks…current weakness is an opportunity for topping up..hardly surprising they are weak as they are mostly Ex Dividend. However as the DRP period and the buy backs kick in I suspect we shall see some strength return in time for Xmas…

 

Yesterday we once again saw how hard the bears can be hurt as CSR announced some good numbers..well, not that good..but better and they look to have turned a small corner in their troublesome glass business.Positive outlook statement sent the bears scurrying for cover much as they have done in ORI..sure some of those bears were clawing the financials down yesterday as the house bubble gets bigger and bigger and the overseas hedgies try to pray upon the bursting bubble view..Good luck..worked well so far!!!

 

Idea of the Day

 

I was asked on TV yesterday if it was time to buy mining services…said no ..but if you must and the boom is not bust just changing from exploration and construction to production and cost cutting…stick with companies that are involved in production..ORI has run hard as things aren’t as bad as punters thought…so what others are doing relatively OK.. maybe look at BKN if you must..

 

In other ideas today maybe retailers are going to enjoy the festive season..In the US the retailers are in demand as investors hope for a good season and maybe we will get the same here..lower Aussie dollar will crimp some internet demand and so maybe we will see the likes of HVN,JBH,KMD,DJS,MYR and PMV do ok…they have run a bit already but sometimes a moving train is good to get on..at least you know what direction they are going in…still though would avoid Putting Dick Smith in your stocking this Xmas…interest rates at such low levels and the housing boom making us all feel better is helping the retailers too…

Things to make me go Car B Q!

First it was the cars that caught fire, now Tesla’s plant in California has fired up itself! Fire trucks called as three employees injured in a small explosion!

Have to say that every day that goes by in the US Obama is looking more and more like a lame duck! His grand opus Obamacare has been a stunning flop so far..not only was the web site useless but so far so few people have signed up that they are now having to change definitions of sign ups! There were hoping to sign 500,000 in October but instead only 106,000 enrolled …and I use the term loosely as most of those 108,000 didn’t get to the checkout phase only put it in their cart…epic fail!!

 healthcare-gov-enrollment-funnel

Still another mass shooting in the US last night with three dead…when will they address the real issues of gun control…never!

Kev 07.Kev 13 have all gone…finally…will be interesting to see where he pops up…with an ego the size of his it will not be long before he has a run at UN President perhaps…or maybe go back to his former job as the Milky Bar Kid!

milky bar kid

In Russia, OAO Mechel fell to the lowest level on record amid speculation that an investor facing a margin call may have sold shares as Russia’s largest coking coal producer holds talks with banks about restructuring debt.

The shares slumped 41 %t to 57 rubles by the close in Moscow today, their biggest decline since at least 2008.

The U.S. budget deficit last month narrowed more than economists forecast as rising employment contributed to the strongest October revenue on record.Spending exceeded receipts by $91.6 billion last month, compared with a $120 billion shortfall in October 2012, the U.S. Treasury Department said today in Washington.

Now I know the World has gone mad..Faceplant offered $3bn for Snapchat…apparently the offer was good for 6 seconds then it disappeared …are these guys mad..can understand why Faceplant would want to buy it…it is eating their lunch as teenagers give up on faceplant ..but come on snapchat you must be so greedy, $3bn for your app..only good for sending selfies of your private parts…take the money..

Talking of IPOs and Tech stuff ..Freelancer lists tomorrow 436m shares at 50 cents …should be interesting given the demand for tech stocks with growth!!And with all the floats before Xmas it is taking its toll on the marlet as fund managers are cashing up to take advantage of “cheaper” IPOs to get set…didn’t seem to have the same effect in the US with Twitter but shows the lack of depth here.Small caps and mid size will probably suffer the most as punters switch.

Grain Corp: Farmers groups are persisting with lobbying efforts to stop a $3.4 billion takeover of GrainCorp by the US food giant Archer Daniel Midland. Representatives from the Victorian and New South Wales farmers’ federations will meet with Foreign Investment Review Board officials on Thursday.

REA Group’s: launch into the Chinese market early next year is the next step in a strategy that has delivered impressive returns to investors this year from the digital property listing company. Management is quick to outline the four to five years of preparation that has gone into its myfun.com Chinese language site, designed to provide Chinese investors with access to Australian properties….the site is called myfun.com..sends a great message to punters about the value of property.

And yet another bid for the blessed Cheese makers yesterday..this one is looking just like Ludowivci a few years ago…stay with this one as its still got a way to run!!!

And great to see the Oliver Curtis/John Hartman trial on the front page…fab look into the lives of the entitled!

And finally…..thanks Barry..blame him not me! Apparently this is a true story..

Shortly after a British Airways flight had reached

its cruising altitude, the  captain announced:

‘Ladies and Gentlemen, this is  your Captain.

Welcome to Flight 293, non-stop from London Heathrow to Bangkok.

The weather ahead is good, so we should have a smooth uneventful flight.

So sit back, relax and….  OH, MY GOD  !’

Silence followed!

Some moments later the captain came back on the

intercom.

‘Ladies and gentlemen, I’m sorry if I scared you.

While I was talking to you, a flight attendant accidentally  spilled a cup of hot coffee in my lap.

You should see the front of my pants!’

One Irish passenger yelled…

‘Bejesus mate   ……..you should see the back of mine!!!’

Have a great Thursday.

 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.

Get a Global take on things at www.ntmarkets.com

Get a Global take on things at http://www.ntmarkets.com

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