Noel Campbell

Welcome all Safety in the Market traders to this month’s dedicated newsletter. The last couple of weeks have been highlighted by a dramatic sell-off and then return to strength through the recent bounce in prices. The big question is, has the long awaited ‘bear market rally’ begun?

When it comes to trading and following Australian Stocks I tend to prefer sticking with the top 20 stocks.

Welcome to all our Safety in the Market traders to this month’s newsletter and of course Happy New Year.

Looking back over the history of the Australian market since the inception of the SPI futures contract in 1983, you will find no other bear cycle as savage for such an extended period.

A lot of traders fear overnight gaps. A gap is when the price jumps one way or the other overnight compared to the closing price of the day before.

The run up on the SPI200 had been quite strong since the low in mid March, until the May 19 top (6004).

For now equity markets across the globe have stabilised and have actually started to show some signs of finding a bottom.

Well it has certainly been a big few months in the stock market since the tops of late 2007.

It has been a dramatic few weeks on global stock markets. The impact of the credit crunch and years of easy debt, that is simply not available now, is really starting to hit home.

To say it’s been a big week in terms of market movements is an understatement.