dead cat bounce, page-8

"I think - if banks continue to recover, oil continues to drop and China and India continue to grow - the market will continue to rise and will reach all time highs again - possibly within 12mths."

I think these three sum up everything and will tell the story down the track

At the moment we have two out of three

1. banks recover -
Citigroup came in with a better than expected result.

http://www.theaustralian.news.com.au/story/0,25197,24043721-36418,00.html
2.oil drops
Oil has dropped $6. Oil stocks down. industrials up
http://www.theaustralian.news.com.au/story/0,25197,24043667-36418,00.html
3. chindia - mainly impacts resource stocks
Unfortunately this one seems to be coming off the boil
I read where eco growth has come off 12% but it is still pretty strong.

Feed these in and you can see why the DOW goes up and we go down.
Of the stocks that seemed to go up on that day, banks and property trusts seemed to do ok. All resource stocks were down.

perhaps if stronger economic fundamentals underpin the DOWs rise(and it is not a dead cat bounce)then the weakness in our resources at the moment might be a buying opportunity.

However if the oil price doesn't continue down and the strengthening in the US banking sector is not evident, then we probably have a deadcat bounce.

Much cheaper resource stocks down the track.