friday trading

Although not surprising of the fall in the US since Feds
couldn't organise a brothel let alone trying to fix the US$. As the
market analysts predicted, oil rally due to continue weakening of
the US$ and top it off with Goldman Sach coming out downgrade all US
brokers and a sell recommendation on General Motor and in the end we
got US markets down around 3%.

So what is that going to do to our market today ? Well a big drop at
the open for a start but with oil up to just below $US140 a barrel,
gold jumps over $31, and all the base metals are so strong and our
banks are just recovering the last 2 days, are we going to see a
shift back from banks to resources or do we see a combine panic
selling ? What about end of FY window dressing and new funds buying
from July 1 for the new FY and new quarter ?

Well, I will be surprise if we drop 3% at the open with Dow, as
strong oil and base metals and money leaving the US have to find a
home since the weakness in the US is their weak $US policy issue, so
you think our mining and resource stocks should not drop as much and
support market in some way. But if they don't then watch out below.

JC mentioned trendline from 1982 is about 1288/90 or so for S&P and
it was looking like it hold for a while but then couldn't so lot of
caution required for long position overnight but a long trade is not
out of the question intraday.