I was doing a review of some of my Australian favorites today,...

I was doing a review of some of my Australian favorites today, selecting mostly higher quality businesses like Flight Centre (FLT). On a technical basis, what comes across clearly is that large numbers of stocks have firmly broken their 200 DMA and established a trend under the 200 DMA.

It looks like the ASX has joined the US and Europe and is officially in a bear market mode.

Obviously ASX is better insulated from economic impacts in Europe than is US. But if commodity prices soften, ASX could easily approach 2009 lows again.

AWE I will keep simply for the shale payoff. Other ASX holdings that trade on forward earnings I am looking for opportunity to sell on any significant rally. We may not get one.