where i see it thursday, page-6

We will know more whether this trend can be sustained in a few days time.

Quarterly reporting starts next week in the US with Alcoa reporting on Tuesday 8 January (US time). After about a week we will get some idea if earnings are being squeezed or if there is more upside, perhaps as a result of PE multiple expansion.

The Shanghai market is certainly running hard (up 1.61% today), from a very low level as is Tokyo (up 0.7% today). Hong Kong is having a quieter day being up only 0.11%.

It sure feels like the US market wants to rally up to its all time high. I doubt our market will get anywhere near its previous all time high for a long time even if the RBA does introduce a zero interest rate policy like the US Fed has done.

It is a very confusing market for me. The better goldies are rallying but they have been pretty badly smashed so they still appear cheap. If the market turn down they will fall in a heap again while the upside from here may be limited to just the next short term spike in the POG which is range bound.

loki