abbott, anz, asx, Asx 200, ASX200, aussie dollar, australia, Australian Sharemarket, bank of england, banks, ben, Ben Bernanke, Bernanke, BHP, BHP Billiton Limited, billabong, boe, BOJ, BRU, cba, Charlie aitken, china, commonwealth bank, Commonwealth Bank of Australia, copper, CPU, crash, cyprus, diggers and dealers, dollar, dow, draghi, ECB, economy, essex Lion, eu, euro, europe, eurozone, fairfax, fed, finance, fmg, fomc, Fortescue, Fortescue Metals Group Ltd, Fortescue mining, france, gold, greece, igr, insurance, Interest Rates, iron ore, iron ore falls, italy, Japan, Macquarie Group Limited, Mario Draghi, marmota, meu, Mo farrah, NAB, National Australia Bank Limited, National Bank, nev power, Newcrest Mining Limited, oroton.qbe, qbe, RasPutin, RBA, Reserve Bank, results preview, RIO, Russia, SGP, shares, silver, Sirius Resources, slr, stevens, stock, stocks, super mario, telstra, Telstra Corporation Limited, ten, tinkler, TLS, twiggy, uk, Ukraine, wbc, WHC, Whitehaven Tinkler coal bid cash, Woodside Petroleum Limited
Morning sports fans,
Good to see we have got Black Friday and Monday out of the way as the index has plunged 180 in two days!!!
Volatility is back..I mean it’s just stupid..the lunatics have taken over the asylum..Silver was up 17% from its lows Gold went ballistic to $1212 and was up 70 bucks from its intraday lows…oil rallied hard….this is just stupid people!!The machines have taken over ..the Algo trading platforms are working flat out…we even had a flash crash in Apple yesterday!!Seems reality has left the building…
Our market got absolutely whacked yesterday..now I always thought that a lower oil price was actually a good thing ..the media is talking this crash in oil prices as if it is the 1970’s oil shock..cheaper energy is good for consumers ,logistic companies etc..actually pretty much everyone except the oil companies but again I have to say why don’t you hedge..I find it incomprehensible that a company spends millions drilling holes and trying to find the black stuff(or any commodity) and then does NOT hedge their price they receive for that oil…you control every other cost except the one that is the most important..crazy..I know they always say that the investor wants exposure to the oil price…yeah you reckon…maybe they want exposure to a well-run efficient profitable company paying good dividends…which is why my friends everyone loves the banks!!
Figures last night continue to confirm that things are slowing down..I mean did they ever speed up?..Italy is in a recession again and the PMI ‘s were not good…Chinese PMI was disappointing too….I have a question though ,how do you measure PMI? ..really in a country of 1.5bn ..does it really matter if PMI is 50.5 or 50.3…hey there are two flies crawling up a wall let’s bet on that boys..really!
Idea of the Day
The big question is does last nights’ bounce signal the end of the rout..I think not…I remain of the opinion that we will see the 5150 low again…crikey it is only 57 points off so pretty close..today we will rally…will be good to see some green on the screens..but it possibly won’t last…seems that overseas investors(and I use the term loosely) really don’t like what they see happening here..and after the disaster that will be MYEFO from Smokin Joe (who has the full support of Tony) then it will get worse…few margin calls around yesterday too..didn’t help..savage falls in oils and resource stocks hurting!!!
Xmas is cancelled?
I have said it before and I will say it again..the days of buy and hold have gone..it’s all about the trade..the trade..it’s all about the trade……there are just too many vicious moves out there to buy a blue chip and hold..I mean look at some of the moves STO 10% ..MTS 16%….WOW..15% this month!!!and these are the safe as houses stocks aren’t they!
Things to make me go mmmm!!!
Let’s face it there is a war going on…it’s not like WW2 or 1 but it’s still a war and likely to get worse..as they said in 1914 it will all be over by Xmas…and you know what, it wasn’t!!The Saudis and OPEC have declared war on Shale..or more properly they have declared a state of war exists between the US shale producers and the OPEC alliance…now normally that would be a good thing wouldn’t it..cheaper energy…at least China thinks so as it is hoarding oil at these prices..but the war will cause severe eruptions in oil producing countries..most of them rely on oil revenue to bribe their citizens not to revolt…but no goodies equals problems…Venezuela is looking like it will be the first to implode as their bonds have soared to yields around 21%!!!
Permits for new wells dropped 15 percent across 12 major shale formations last month, according to exclusive information provided to Reuters by DrillingInfo, an industry data firm, offering the first sign of a slowdown in a drilling frenzy that has seen permits double since last November.
RBA meeting today…mince pies all round…no change to rates …Scrooge!
Ferrovial’s $1.95 a share indicative takeover bid for Transfield Services is looking increasingly attractive as the contractor’s stock slides amid concerns over a slowdown in the oil and gas sector.
Metcash yesterday..hardly a surprise..Aldi is eating their lunch..hard enough for Coles and Woolies..
Agency Moody’s downgraded Japan’s sovereign rating from Aa3 to A1 overnight .Citing delay of sales tax….The Yen then rallied against the USD..go figure!
Australian data releases today include building approvals for October, a bounce of 5% is expected following an 11% drop in September, along with Q3 current account, net export contribution to GDP and government expenditure figures.
Murray report soon…
And finally….we look to golf today..apparently the Irish and Blondes are getting upset! A few golf commentator quotes fro Mr Feherty who is a CBS announcer…
He said one day, “It would be easier to pick a broken nose, than a winner in that group.”
“Fortunately, Rory is 22 years old so his right wrist should be the strongest muscle in his body.”
“That ball is so far left, Lassie couldn’t find it if it was wrapped in bacon.”
” I am sorry Nick Faldo couldn’t be here this week. He is attending the birth of his next wife.”
Jim Furyk’s swing “looks like an octopus falling out of a tree.”
Describing VJ Singh’s prodigious practice regime -“VJ hits more balls than Elton John’s chin.” (Thought I was going to hurt myself laughing at this one.)
“That’s a great shot with that swing.”
“It’s OK – the bunker stopped it.”
At Augusta 2011 – “It’s just a glorious day. The only way to ruin a day like this would be to play golf on it.”
“That was a great shot – if they’d have put the pin there today.”
“Watching Phil Mickelson play golf is like watching a drunk chasing a balloon near the edge of a cliff.”
“That green appears smaller than a Pygmie’s nipple”.
Have a great day