Classic, couldn't wipe the smile off my face! I think we are...

Classic, couldn't wipe the smile off my face!

I think we are starting to reach the bottom of this pull back. When i use the term 'starting to reach the bottom' i mean we could see another 3 to 5% drop before the rally starts. This is predominately based off gut feel to be honest. I have attached my chart (no expert here) for your viewing.

I believe we will probably see a rate cute from the RBA before Christmas if we don't see any improvement in our economic figures. I also believe china, if the market doesn't stop falling, will implement some form of stimulus in the form of infrastructure or equivalent to spur the economy on. I know they said they wouldn't, but they have essentially thrown everything at it except the kitchen sink. So I can see it happening.

So in summary I'm keeping an eye out for next week with china and its markets, as this week is being supported for the parade on Friday. I believe if we will see further drops it will commence next week once the government intervention scales back a little. Anyway that's my 2 cents.

Good luck to all holders!