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Morning sports fans,
Here we go again…another dummy spit by traders who weren’t aware that the US was going to raise rates!!!Really what rock are they living under…this has been on the cards for so long now. Why is it a surprise?..You cannot run crisis settings on monetary policy when the economy is going gangbusters..it makes no sense …and you know that at some stage when things get wobbly again, then they have nowhere to go!!The big problem on raising rates a tad ,and I do mean a tad, is that it will push up the dollar…US companies have been feasting on a lower dollar for some time now as they appear to have won the currency war and been reaping the benefits..all those lovely benefits have raised dividends ,enabled huge buybacks and raised the P/E on the Dow to abnormally high levels..sooooooo…surprise the game is up…well that game anyway..sure to be more M&A activity to keep things bubbling and let’s face it still hard to ignore the US markets but the traders are spooked and spooked badly…expect more hot air to leave the US market..our dollar to weaken to 75c and woe is me everywhere!!
So here in our little bank driven market what’s going to happen..well yesterdays’ rally petered out pretty quickly..business confidence is now back to pre-election levels and we saw more backflips in Government yesterday with the car assistance package…I heard a SA pollie talking about how the government wanted to create stability…yeah ,stability right up until all the car companies cease …or after the election..Resources are throwing in the towel again and we saw continued falling away in BHP and Rio and the small end of town and with the banks not in favour there is a distinct possibility that we could see 5700 quicker than I thought possible…much quicker…5300 to 6000 is 700…50% retracement takes us back top 5650…so that’s where I will get my buying boots back on..Aussie dollar will continue to weaken..actually it is more about the USD going higher…Euro looks completely stuffed!!
Idea of the Day
Now I don’t often see a small cap that excites…well sometimes I know I get a bit carried away, but I had the pleasure of attending a lunch yesterday with a minnow..they are Leaf Resources..(LER)..tiny market cap very speculative and not many around but worth a look none the less…so what do they do ..well they have a process that converts Biomass and plant material into clean sugars…or technically Cellulosic sugars..now WTF is that..well its big..from clean sugars you can make all kinds of things and they are fast growing markets..predicted to be a $500bn market by 2017..25% of Dupont,and P&G sales by 2020..Bioplastics,polymers etc..actually most of the stuff we make with other complex hydrocarbons can be made with clean sugar…and these guys have a process called ‘Glycell’ that produces this stuff cheaper than anyone else..no expensive pilot plant needed and on the brink of some deals with majors…this is a Rachel Hunter story..much like my story on Alexium which went from 9 cents to 70 odd…
Only for those of a speccy bent but happy to send more info if you are interested..the main point is Glycell process Cellulosic sugars at $150 ton against $230 from the dilute acid process…
Things to make me go mmmmm!!!
Ferrets are banned in New York..who would have thought…apparently the Mayor is looking at overturning the ban so Paris Hilton can get hers back!!
‘If they decide to kick us out, the damage will be greater for them.’
Manolis Glezos, the war-time resister who ripped the Nazi flag from the Acropolis in 1941, now a Syriza MEP for Greece.
Now you thought that Greece was sorted…well kinda anyway..but no, it seems that the money lenders aren’t that impressed with the measures that the new Government has promised…promise being the word as they have failed to really do any implementation of anything apart from starve the people…well looks like they are now raiding the piggy bank to fund the government as they bust open the piggy and shake like hell..they are rading the fund that helps out stricken banks..money leaving Greece faster than you can say Taramasalata!!
Another Medicinal Marijuana float in the offing with TPI doing the rounds as they look to raise $36m to float in June…getting a bit crowded out there now in weed land..
Good to see both BHP and RIO defending the ‘dig it til they bleed’ strategy for the Iron Ore market…
Apparently the Apple watch may only last three hours if you check the time, emails, weather etc too often..sure it will fly out the door!!
God bless America!! Every night, more than 60,000 people—almost 26,000 of them children—sleep in shelters, an increase of about 20,000 in three years, according to the Coalition for the Homeless, a New York-based advocacy group.PLUS another 3500 sleep on the streets…
Chinese inflation was ahead of forecasts with fruit and vegs on the rise… Their CPI was 1.4% and up from the prior at 0.8% and better than forecasts at 1.0%…less room to move to stimulate…
Ardent Leisure-think Bowling,fun parks and health clubs was hit yesterday with the surprise resignation of its CEO…new lady has taken the helm and the market will be underwhelmed…very underwhelmed…but if they drop enough maybe right to have a look…will be watching…
Apparently remote communities are ‘lifestyle choices’!!! Nice work…
ISIL or whatever we call them today have launched their own Facebook…it’s called Selafabook.com…not quite as catchy I admit but these guys are good at social media..not sure I like their idea of ‘share’ though
And finally……as a POM I feel vindicated as a new report found that showering too often was bad for you…I knew it all along…at least the English can do something right!!
Judy got married and had 13 children.
Her first husband, Ted, died of cancer.
She married again, and she and Bob had 7 more children.
Bob was killed in a car accident, 12 years later.
Judy again remarried, and this time, she and John had 5 more children.
Judy finally died, after having 25 children.
Standing before her coffin, the preacher prayed for her.
He thanked the Lord for this very loving woman and said, “Lord, they are finally together.”
Ethel leaned over and quietly asked her best friend, Margaret, “Do you think he means her first, second, or third husband?”
Margaret replied, “I think he means her legs, Ethel . . . her legs”.
No rant tomorrow as I am playing in the ASX Bulls and Bears Golf day..there is a Maserati for a hole in one on the 18th that has my name on it!!
Have a great Wednesday