The Market Wrap 26-2-10

By Jason Fittler

Will the trading range hold?

Over the past weeks we have seen the market test the 4500 low point, once again the market pushed back up to 4700 before re-tracing the gains over the past couple of days. Australian companies are currently in their reporting season and although a number have come out with good results the focus has been on the under performing companies. So far we have seen an ordinary result from Telstra and a poor result from Toll Holdings.

BHP and RIO have also fallen over the last couple of days. I expect the next couple of weeks to be volatile while investors trade on the back of any news. I however will be using any major sell down in good quality stocks as an opportunity to add them to my portfolio.

Right now is a great time for the long term investor, buy good quality stocks paying a high yield and hold for the next 3-5 years, the days of the short term gains have past for now.

Let the institutions rip themselves apart while we sit back and enjoy the healthy dividends.