how low will it go?, page-27

I'm a follower of Newton's law when it comes to the market direction.

Ie. an established pre-election trend tends to continue but with bumps along the way when left-field events occur. I've looked at what happened following the elections of 1996, 2007 and 2010. I could analyse them to the nth degree, but its pretty obvious that the trend in force before, continued after.

Where are we now? I'm very positive for reasons that I have mentioned in several posts. I think that talk of the mining boom being over is nonsense. It did get ahead of itself, but in a way, I think the maturing of the boom has shaken out a lot of wanna-bees who were never going to make it anyway.

Those who have been swimming naked are now on full show, and there are a few biggies among them. The well managed companies, of which BCI is obviously one, are doing well.

I often look at a scan to find which companies are leading the pack, and the responses are often very surprising. Eg. today is pretty dull, (-21) so it is surprising to find 10 well-traded stocks that are actually bid above their highest price in the last 12 months.

At a glance, one of them is SCC, Scott Corp, a transport company. Big deal eh? Well, I do take notice for several reason. The company has been listed for 20 years. It is owned 70% by Scotts. Profit guidance is good. It is well known that a strong transport index in the US is always a good leading indicator of the economy. And so it is here. Not rivetting on its own, but all part of the positive picture that I see.

Throw in the $600Bn in (short) term deposits, massive amounts in the hands of the mum & dad SMSFs, Fe at $A150, and I I find it hard to be negative.

Contrary views welcome!