Nothing serious, I hope, Nikk0. All the best til next week.
I'm still groggy after yesterday's market mauling but here's a quick market update for those willing to go another round:
Wall Street closed in the red but still comfortably within the trading range of the last three weeks. The S&P lost 0.75% and the Dow lost 1.5% as Bank of America hit a new low. Financials weighed on markets but there was strength in resource stocks despite minimal movements in major commodities.
Oil slid another 1% to $40.40. Gold gained 1%. Some of yesterday's momentum in base metals prices continued overnight but gains were moderate.
The SPI has been a lousy predictor of movement this week but for what it's worth, it's at 3411.
The big concern for our market is the flood of capital raisings. Already this week $5 billion has been swallowed through placements by QAN, NCM, WDC, TAH and LLC. If you want to know where that money came from, look at REIT and industrial share prices. Ouch.
The need for instos to cash out of existing holdings to take part in these raisings, combined with the fear of further raisings, has made the REIT and mid-cap sectors very dangerous playgrounds this week. There is money to be made if you can buy at the bottom but there's no rush to get in, as I found out yesterday in trades in MGR and SGP. Both were narrowly profitable in the end but it was a long wait for an exit.
