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Morning sports fans,
Well things are getting interesting…while I have been sunning myself in Hobart for a few days things have taken a dramatic turn and none more so than last night…Zombie markets plunged..der..well we have talked about this for a while..Zombieland is stuffed..they have no answers..the weight of the Eurozone cannot be supported by Germany alone especially when they are suffering with sanctions and slow downs…None of the idiots in power have moved fast enough to reform their economies..they have instead relied on Super Mario and the general feeling of ‘whatever it takes’ to save their bums..it has not worked…it cannot work…Central Banks alone, cannot stimulate the growth ,there needs to be reforms as well…trouble is politicians get elected and the voters won’t like the reforms, so why do them …Greece is looking to be a basket case again…France ,well it’s France and Italy pretty much the same…so there is one big part of the World’s economy….then of course last night the US wobbled…the bond market had a flash crash the ,futures volume was massive, equities plunged 350 points before a rally and another case of Ebola identified…scary thing is that Ebola is scaring the pants off the US…and they have had only two cases!!!Airline stocks have plunged despite Oil falling in a heap which must help…so with two victims they are down 17%…god help them if it gets really serious.
Still our market has been on an uptick having got oversold..the shorts have now covered and bargain hunters will be reluctant to wade in whilst the volatility is soaring…US fear index or the VIX hit 30 last night…think I mentioned that when it was 12 it could not last and that volatility will increase..and so it came to pass…
The problem with crowded trades is when someone yells “Ebola” everyone tries to get out at the same time…that is what is happening now..all those US hedge funds, that struggle to be the best, are scurrying for the exit on mass…an edifying sight indeed and of course when it happens chaos and confusion reigns…the only thing that saved the US last night was Janet Yelling that all was well…similar to the Captain of the Titanic perhaps…or Bill Gross leaving PIMCO!
So last night the SPI was down 80, then rallied to be down a meagre 31 at the close(or is it the open)..so we will open better than we thought but I believe that fear will grip us by the throat and we will sag as the day goes on…it was only 27 years ago on Sunday that we had the 87 crash!!!bound to be some talk about that… I remember it as if it were only 27 years ago…
Idea of the Day
Yesterday I looked at MOC again…blimey they got cheap..$2.40 yielding a lovely 6.4%…..course they didn’t stay there for long as CEO Michael Russell announced bumper numbers…stock jumped to $2.60…if they get anywhere near $2.40 again..just do it..buy them…you will make money when the dust settles..
Last week I was MC at the Gold symposium…interesting event run by Kerry Stevenson and her team…well worth attending next year BTW..anyway one of the things that struck me is that the gold price is only ever reported in US terms..in Aussie dollars things aren’t quite so bad..having said that it’s not good..at one point I wasn’t sure whether it was a conference or a wake…or maybe a prayer meeting…anyway there were a couple of companies that caught my eye presenting one of which was GPR…impressive presentation and focussed…they have project in Cambodia that is looking very interesting..was impressed with management and for those after a flutter anywhere around 6.5 on a horror day would be good buying..can send more details if required..
Things to make me go mmmmmm!!!
For those that have been reading my daily rants for a while you would be aware that this period of volatility has been well and truly signposted…no one wants to leave the party til right at the end but that is when all the rouble happens..believe me I know I was at Octoberfest in Hobart Saturday night…ugggglyyyy!!! So hopefully being forewarned and forearmed has helped ease the pain..we have hit 5200 and we will hit lower levels despite the recent rallies..be a good boy scout or, in these PC times, a good girl guide and BE PREPARED!
Nothing lasts forever…
There are some big moves out there Netflix in the US plunged 25% after hours as subscriber numbers disappointed!!!
I did write a few weeks ago what would you do if the Dow was down 1000 one night…question still remains…because it is getting possible that we might see something like this …volatility equals opportunity remember…
17 percent decline in U.S. airline stocks since a high in September on two Ebola cases in Texas…
Obama has played golf 200 times since he became El Presidente..least he is preparing for life after the White House…would like to think he is pretty good now..certainly isn’t setting the world alight(except with Drone strikes) with any policies…did anyone say Dead Duck..yeah me..so disappointing!!!
Rio Tinto has hit record production at its Pilbara iron ore mines and is on track to significantly boost its output.
Australian-listed independent coalminer Whitehaven Coal has warned there is emerging uncertainty around the ¬future of Chinese import conditions and an oversupplied market but the company is confident -prices will gradually improve.
Paul Howes at the Opera House…Jarryd Hayne defected to play NFL…is that the stupidest thing you have ever heard..I mean really..NFL…he wants to be a punt returner…I mean really they have a whole position for one guy to kick the ball back..is he absolutely mad!!!Why would you give up the best years of playing boof head football to kick a ball back to guys called the Fridge…beats me!!
Think he will eat Jarryd!!
YELLEN SAID TO VOICE CONFIDENCE IN EXPANSION AMID FOREIGN RISKS….you have to laugh…no man is an island…
Dow Transports -11.6% from highs (correction)
Russell 2000 -14.4% from highs (correction, -9.6% Year-to-date)
Good to see the rhetoric ramping up between …Ladies and Gentlemen I give you ….in the Blue(tie)Corner..Our Tone and in the Red Corner, RasPutin…this one should be on pay per view on shirt front TV!! Betfair has stopped taking bets on RasPutin!!
And finally…the jokes have piled up in my absence as have the emails!!!
Here is todays’..I know you have missed it…
Two female teachers took a group of students from grades 1, 2 and 3 for a field trip to Flemington Racecourse. When it was time to take the children to the ‘bathroom’, it was decided that the girls would go with one teacher and the boys would go with the other.
The teacher assigned to the boys was waiting outside the men’s toilet when one of the boys came out and told her that none of them could reach the urinal. Having no choice, she went inside, helped the little boys with their pants, and began hoisting them up one by one, holding on to their ‘wee-wees’ to direct the flow away from their clothes and shake them dry.
As she lifted one boy up, she couldn’t help but notice that he was unusually well endowed. Trying not to show that she was staring at his equipment the teacher said, ‘You must be in Grade 3?
‘No ma’am’, he replied. ‘I’m riding Black Caviar in the next race, but I really appreciate your help.’
And thought for the day…
“This time it is different…”
Yeah right…the Fed is out of money!!If they pumped in QE4 it would send a really really strong signal…but not a good one I think!@!!