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Tom Scollon
Chief Editor
DOW you are all over the shop! Down 174 points Tuesday, up 63 points the next day. Where are you going? What are you smoking? How can it be that you can see the world so differently from one day to the next?
And what's more you are leading us on – and down.
For a while there our local market showed independence and thumbed every move by the DOW – up and down – but now we heed its every mood.
The OZ market is in retreat and whether we blame the DOW, oil, interest rates fear or China growth rates de-acceleration, it is happening and a welcome pullback. I can hear the audible sighs of relief from investors (some) and especially the Fundies.
As up trends have dips and pullbacks, so too do declining markets have small contra trend moves. We might see some minor moves forward in a market that is otherwise retreating.
When I started to pen my editorial on Thursday morn' the All Ords was up a lusty 17 points and I ask myself who is doing this? And why are you doing it? The market wants a breather. There will be cheaper opportunities later. There is no rush. I check the All Ords later and it is down 16 points! Frenetic activity I say.
When a market retreats it is hard to know where it might finish. I believe the first port of call is about 3990 but I suspect support will not be strong enough at this level and we can then expect that the market will settle somewhat lower.
We can tell the market is sliding – even if it is only short term recoil – as volume is rising on down days. A sure tell tale sign. A good time for a holiday until the market makes up its mind and resumes its major direction - upwards.
Enjoy the ride.
Tom Scollon
Editor
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