Why I think the SP has found the bottom?

These are my reasons.

1. Tax loss selling should be over by now (only 3 days left until 30 June, hard to believe that those are thinking of selling would wait until the last week to do so)

2.Uncertainty created by the UK referendum is over (We saw how European and the US markets quickly stabilized on Friday after the initial overshooting)

3.Impacts of the Brexit has been less severe than expected. To illustrate, FTSE stood the ground much better than people have anticipated. This bodes well for this week because the market was expecting a Black Friday and a crash at a much higher rate. Impacts have definitely been less severe than anticipated.

4.SGH has recently been involved in several high profile class actions including Ford, Nurofen, ANZ Prime Access and/or ANZ Wealth clients, Murray Goulburn, Billabong, Fairbridge Farm School etc.). It is clear that the clients are not paying interest to the SP and they are satisfied with the quality service provided by the firm for more than 80 years.

5. Bank guarantee has been received so there will be no payments due until mid-2018.

6.Much anticipated H-2 report is not far away. In fact, less than 10 weeks left.

7.George Osborne, who is mainly responsible ( due to his suggested reforms) for the SP drop from $3 to $1 in mid-November 2015 is most likely follow the suit of Cameron and may resign from his post. It is hard to believe that his reforms will surface again at least for a few more years.

There are many items to list, but the message is clear. As I have suggested on Friday, the SP will begin the recovery process this week and will continue it for the next few weeks (not monotonically, of course). If this eventuates, SP will be in the $ range when the news comes to the market in the late August.