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Morning sports fans,

A pretty weak start to proceedings today following big falls on the US market and particularly the NASDAQ as yesterday’s heroes took a pounding, down 110 points to 4127.We will test the 5350 level in the coming days and I still think there is more downside than upside despite the John Bull Printing set running hot with dollars yen and pounds out there

Feel like its Chickens coming home to roost as the hot air leaves Faceplant and others.Maybe Faceplant buying that whats app was the top for a while..did feel like a silly price to pay!!!

chicken-run1

One doing the rounds of social media for my British friends..

underground_overground_wombling_free-528x704

I guess I have been urging caution so its hardly a surprise and would expect to see some of that action happening here as the heroes of the ASX Techs take a hit..things like XRO and REA and SEK would be in the firing line.

 

Spot gold up to $1303.64 an ounce s at the open

Brent oil rises to $US106.72 per barrel open

Iron ore steady at $US115.70 per metric tonne

Idea of the Day

 

Now I have been urging some caution on GEM for a little while…its like sitting down and pigging yourself at Maccas…it tastes good at the time but it just sits there and makes you suffer from massive indigestion and then in 30 minutes you want that sugar hit again…now these guys at GEM have been on a massive sugar hit and have drunk from the childcare chalice for a while now..buying more and more childcare centres..eventually they will become bloated and will need to sit and digest the acquisitions before they get hungry again..they have run very hard very fast and I believe that anyone who has enjoyed the ride should be reducing their position …I think we will see them back under $4.00 in the near future as the big Mac works its way through..was happy to sell at $5.00 if you were reading my notes and I see more downside from here…it may even accelerate a little especially given the mini tech wreck in the US..

 

Remember peeps Caution has been my watch word for some time…I was struggling to find things that were good buys…maybe this week will throw up some opportunities…we shall see..dont be in a hurry…Easter and Anzac day plus the budget will make it interesting.

 

Things to make me go mmmmm!!

The Government plan to collect dead uni students debts…there really is no where to hide…

US non-farm payrolls, which posted gains of 192,000 in March, below “street” estimates of 206,000.

The US unemployment rate was steady at 6.7 per cent as the participation rate (or the number of people in the working age population looking for work) rose from its recent lows.

 

The rise of the cost of education in the US!You think we have an issue with student loans …these guys have a massive problem!! The amount of heavily delinquent student loans has just hit a fresh record high of $124.3 billion, up from $121.5 billion in the prior quarter.

a-0-tuition-and-required-fees-for-all-four-year-degree-granting-institutions-1969-2012

Free trade agreement with Japan…at least we won on the Whales…

In European bond markets, Spanish mid curve bonds are now trading lower in yield that similar maturities in the US.

 

This debate is going to end in the HFT traders being slowed down and ASX and other exchanges will lose income…but the groundswell is building..it is legal front running and should be stopped…from today’s paper..

High frequency trading – a practice involving super-fast computers alleged to have “rigged” the sharemarket – is costing large investors almost $2 billion a year, according to industry super funds who want the practice curtailed.

 

These words of wisdom from head of the IMF Christine La(on)Garde!

The first obstacle is… the emerging risk of what I call “low-flation,” particularly in the Euro Area. A potentially prolonged period of low inflation can suppress demand and output—and suppress growth and jobs. More monetary easing, including through unconventional measures, is needed in the Euro Area to raise the prospects of achieving the ECB’s price stability objective. The Bank of Japan also should persist with its quantitative easing policy.

 

In other words print baby print…unconventional or conventional its all printing money!!!

Chelsea won 3-0 yeah!!!

 

And finally…A fat girl served me in McDonald’s at lunch time. She said; Sorry about the wait.
I said ‘don’t worry dear, you’re bound to lose it eventually’

 

I had a Trivia competition in the bag until the last question which I got wrong.
The question was Where do women have the curliest hair? 
The answer I should have given was Fiji …

 

Have a great Monday..nice to see the rain has finally stopped was beginning to think that Russell was here promoting his film…

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.

 

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

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