Articles for: ProfitSource

The last week again showed continuing momentum but despite the good news on the US reporting front, stocks did not match that with a surge of buying as much of the good news has been factored in. This could be a case of "buy the news sell the reality.” Indices volume is now starting to lag and this can also be seen in individual stocks both here in OZ and in the US. It’s called taking a breather – which is good to see. With the market having achieved such gains the propensity for further upside for the medium term, is abating as investors become more cautious.

So you might ask what is the Caviar Index – it is simply a measure of the good times. When times are good – or we perceive them to be - then we start to live like lords again. We dine out more – at better restaurants – luxury car showrooms become busier and so and so on. Based on Australian economic data we supposedly have been living off a green paddock with rich pickings over the last few years – better than most in the western world at least. But yet few people would proclaim that these have been years of milk and honey and in fact on the contrary it has sort of been hard going some would say.

There is little doubt that the markets have confirmed sustainability and this appears likely to continue barring any major surprises. Technically the markets still want to keep rising. Volume remains firm and there are few sellers so buyers left behind when the markets took off in March are having to pay steep prices to get a stake in the market in these robust times.

I have stayed long Australian stocks and whilst I sold my US bull call spreads I am having a bob each way as I still hold US bear put spreads.

Whether you trade the Australian Dollar or are live in the country you cannot help but have some exposure to our currency.

Well what a week. The challenge for the Newsletter Editorial this week was where to start as there was just so much to write about – we started the week with media reports from the Dubai G7 meeting which really only highlighted some on-going, festering world currency issues.

You might ask why are we inflicted with such uncertainty all of a sudden. Life was going along swimmingly then all of a sudden we are questioning the road we have been travelling as road blocks such as currency turmoil, oil production cuts, new concerns about world growth etc. etc. are put in our way.

This has just been too easy and with the name Tom – Thomas as my mother still calls me – I am the disbeliever (Didimus) about this on-going rally.

Brambles (BIL) is a stock I have been in and out of over the last several years – mainly out!

I just can’t stay away from a good seminar – yes maybe I am an addict but Optionetics is back in town so I am about to take to the classroom once again.