friday fiasco, page-71

Jaolsa, the downturn or any other turn seems eminently credible to me re the US, and your dates appear feasible. For that to translate to Australia would be an extreme interpretation. It could and might happen but it would only reinforce to me that the forces behind the index movement are remote from the real world. The index would only be moving to cover positions or make profits for the index manipulators - it would at best be very loosely related to fundamentals. The issues related to credit crisis have receded and that was really the only real link.

Australia is in resource heaven and likely to be kept there by China and India. The comments re Brazil and Canada confirm this. It is not far fetched to see Australia following the USA down on the USA's housing and credit woes but IMO it will be a temporary money grabbing exercise by those who control cash and the related market manipulation.

So is this to be the confirmation of divergence between XJO and SPX?

With China holding the key re BHP and RIO and capable of influencing the banks with the power of their cash reserves then Australia is surely the truly lucky country.

If the USA chooses to go down I am picking that Australia won't follow far this time. Under 6000 is not sustainable. Takeover offers would increase.