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Tom Scollon
Chief Editor
When I invest I do like to feel I am with others. That is, that there are other buyers alongside me. It is not that I am afraid of the dark, but Mum always taught me that there was safety in numbers. I don't mean I want everyone to be with me, as that would be a signal that it is time for me to maybe think about selling down.
Right now I am a little uneasy that there is not commitment in the higher moves in the All Ords. The Fundies are holding out. I see a chance of a dip – maybe back to 4100 before it makes a committed attempt at a new high. Right now the market is dawdling like a school kid might do on their way to school – where they don't really want to go.
There is a seasonal pattern to the All Ords about which I have spoken often. And that is, that at this time of the year we see the markets move higher until September/October. Over the last two years we have seen the markets move higher at this time of the year, but that was when we were all feeling bullish. In 2001 and 2002 the market actually fell at this time of the year. But in all four cases they moved with purpose and volume.
Within a couple of weeks we will see the start of the reporting season and maybe the Fundies are holding back just in case there could be some surprises, as we saw six months ago when companies last reported major changes to outlook. The Fundies fear those nasty cockroaches.
I know the markets want to go higher just like a footy team wants to win. But right now the coach would say the players are just lacking commitment to win.
Enjoy the ride.
Tom Scollon
Chief Editor
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