Before shorting this market, remember that BHP, RIO, WPL, ANZ,...

Before shorting this market, remember that BHP, RIO, WPL, ANZ, WBC, CBA, WES, WOW and NAB, make up about 65% of the XJO.
The reason for reminding people of this is that what the index is, is a reflection of the health of those businesses, not a meaningless number.

Our banks are better placed than any others worldwide almost. we are the closest and largest suppliers of raw materials to the Chinese market, and we've got to eat!! None of these companies are in a terminal situation, and yet here we are talking the index down to some stupid number.

We are 20% of our highs of the last year and 41% off our all time highs in 2007.

I'm certain that Eurozone dramas will continue to exist. We are, after all talking about 27 diverse nations trying to act as one, but we can still switch on the lights, fill our cars with petrol, and still eat well.

I think a bit of perspective is needed right now, and by way of evidence, I suggest you look at the stocks with a high correlation to the stock market right now, namely CPU, ASX and MQG, who are all outperforming the index in the last day or so. That tells me the smart money thinks we've seen the worst and we are in for more normal times ahead.