Morning sports fans,

This will be brief as I just spent 2 hrs on a bus!!Lovely..

download (19)Dow is starting to show signs of the cracks as the tech boom comes a bit unstuck….. NASDAQ trades at 31.5 times reported earnings of the companies in the index. That’s almost twice the ratio for the S&P 500, which trades at 17 times earnings. The technology gauge has dropped 6.4 per cent since a March 5 high…..

We have been very resilient ..not sure how long it will last but Iron Ore was up again so that will help…the trouble with  our market is the banks BHP and RIO are such a  large part of our market ..and there is some strength in resources at the moment as they have been so bombed out and no one wants to sell the banks whilst there is a property boom on!!

I suspect that we will crack and it will  be on a day we least expect it…yesterday we dribbled down..today may dribble down a bit more ..but caution is my watch word..Easter is coming don’t be a Turkey!

Idea of the Day

When I read the research ,and anyone who knows me well will know my view of it, there are more holds than a Greco Roman wrestling tournament…still struggling to find a reason for the next leg up…banks look fully valued (Now around 180 bucks for the four) and Resources, although better feeling all round, will struggle as the Aussie dollar continues to firm. I suspect we may see 94c on the dollar then get Flight Centre on the line!!Budget to come too…

So where to go for bargains…

Still like MOC… GEM are in take profits zone..I am going to persist with ISU …in resources I like BDR but the market hates them..I would be probably looking at taking profits in FXJ it is a tech stock after all!!!

Things to make me go mmmmmm!!!

Peaches is no more…25 years old and dead..tragic…Not much luck in the Geldof family.

Treasury Wine is set to front punters with its new head bottler..expect job cuts etc..all pretty standard MBA stuff…cut costs, focus on core brands….at least they can drown their sorrows in the good stuff!

Screen grab from Bloomberg!!remember this time it’s different…Its never different !It all comes back in the end..

PE irrationality_0

 

Here’s the next issue I have been talking about…in the past 12 months in the US, a record 98% of all credit – $162 billion – has gone into non-revolving debt, i.e., student and car loans. 

Former ABN Amro Netherlands Chief Executive Officer Jan Peter Schmittmann committed suicide after killing his wife and one of his daughters, Dutch police said, as his family said he suffered from depression.

Thomas Peterffy, the founder of Timber Hill, one of the fathers of HFT said this back in 2010!!!

“In the last twenty years came computers, electronic communications, electronic exchanges, dark pools, flash orders, multiple exchanges, alternative trading venues, direct access brokers, OTC derivatives, high-frequency traders … — and what we have today is a complete mess.”

An online report in the United Kingdom says the Jake Klein-chaired gold miner Evolution Mining is in merger talks with OZ Minerals. The blog said Evolution was in “advanced talks” with OZ Minerals and had made an offer of $4.65 a share. Evolution has been a more dynamic company under the chairmanship of Jake Klein.

Big day in Japan as the BOJ decides on monetary policy and Super Mario is heading for NY this week to talk Zombie QE!!Seems they have run all the scenarios through the computer and the best one is to do nothing but talk about it a lot! Spain’s five-year note yields falling below U.S. equivalents for the first time since 2007. The Spanish yield was at 1.73 percent today, compared with 1.68 percent for the U.S. bond.looking at this it seems to be working.

And finally…..

A Great Irish Text Message

Paddy texts his wife…

“Mary, Im just having one more pint with the lads.

If ‘Im not home in 20 minutes, read this message again.

 

And Anyone making jokes about Oscar Pistorius is just prosthetic!

 

I have a few though..seems timely! I see what Pistorius is doing. He is going to jail for 25 years and when he gets released… Bam! – President of South Africa. That’s how it works over there, right?

 

Have a good Tuesday

 

Clarence

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