market optimism

I suppose with the Dow down 238 points and our market close on Monday perhaps it's a good thing, as we will not get a chance to react to it until another trading session from the world markets. By Tuesday morning we could have the Dow net drop of around 400
points or just 100 points. Either way, I am trying to have a positive focus on our market (because I am long) base on the following views :

1. The Dow big drop was resulted of weak US dollar and war concern. This tell me that oversea investors are bailing out of the US market and those funds need a home to go to. What better safe haven home then our market such as banks and many other industrial stocks ?
With our economy continue to be strong and our Aussie dollar is expecting to climb to 62c short term and higher toward the end of the year.

No doubt our banks stock do have some problems but they're still better quality stocks then their oversea counterparts.

2. All our banks stock jump on Friday afternoon despite the long weekend ahead and the looming war. When this happen in the past, where instos take cover of the banks safe haven, it means they're expecting the US markets are going to come off. I know our banks safe haven status have not been happen lately, but I do think it will happens again soon with dividend payment and the anticipation of the appreciation of the A$.

3. Our oil stocks such as BHP and Woodside should do OK next week with oil price jumped over $1 a barrel.

4. NCP got an upgrade to Outperform from CFBS on Friday night.

5. Our market has not been following the path of the Dow moves either up or down. A few weeks ago when the Dow jump over 2% and our barely went up and vice versa.

6. The Dow is only 131 points from 8000 where it's expecting to hold.

7. A UN report on Iraq to be released on Monday, I would hope for a clear indication of what the action UN/US are going to take against Saddam. I am hoping for a decison that will remove uncertainly and quick resolution. Stock markets never like uncertainly.

8. The rounding up of all the Al Qaida terrorists around Europe in the last few days are a positive sign.

That's all for now but a word of warning. I am holding long positions which explain my bullish optimism of our market. Good luck and happy Australia Day and "always looking on the bright side of life".