world economy, page-31

I'm hoping for a bounce on Monday.

From the Australian Newspaper:

"The Dow Jones Industrial Average suffered its 12th loss in 13 sessions, the worst 13-session performance since October 1974."

Obviously the statistics don't predict the future, and I'm sticking to the fact that a model I have shows a technical rebound is overdue (yes, this takes into account Greece defaulting!).

IMO, If we go negative all week and go below 3800 then the market is starting to factor in the predicaments of other EU members. This would be XAO 3000-3600 by my modelling. If we break 3000, then we are starting to worry about UK (i.e. starting to price that in). If we start to worry about USA, then the ballgame changes, as USA has a different set of mechanisms to deal with its situation. At the moment, nothing is being dealt with, and things may well stay that way (as they have done for decades).

Hope these levels are of use to someone. I call it how I see it and am not afraid to be shown to be wrong. My goal is simply to be right more than I am wrong, as this translates into extracting profits from my investments.

Hopefully world leaders and behind-the-scenes heavyweights are putting something together ATM, to be announced soon. My personal view is that monetary expansion will prevail, though it will happen under duress and in a manner by which to save face. Ultimately bullish for commodities IMHO. Time will tell.