6000 Here We Come

As I write this the market closed for the day at 5969, which makes 6000 look very probable over the next couple of days. At these levels, it makes it hard to find good value but with a bit of digging around we still can. A couple of stocks which I still think are good value are News Corp with price target of $36.42 which is 14% up from here, Macquarie Bank with a $96.17 price target and upside of 17%. BHP and RIO still look like good value at these prices but be aware that if the market pulls back so will these shares as they make up such a large part of the market.

For those of you who are looking for a bit more excitement take a look at Boom Logistics, they came out with a result below expectations and the CEO resigned. The price went into free fall but recovered slightly today.  This could be a great buying opportunity for the stock as it does oversold.

On the other hand, if you were thinking about locking in some profits on your holdings then this would be a good time to start. When the market moves like this it make sense to lock in the gains as you go. Sure you may miss some of the upside, but taking profits is like have motor vehicle insurance, there will always be a cost but it does limit your down side.
 
Cash, be comfortable holding cash at present. Normally I would recommend getting it in the market but when the market hits these sorts of levels, there is a real benefit in holding a little extra cash. This will allow you to buy up when the market falls. 
 
Some of you will be tempted to cash up your whole portfolio with the view to buy back in when the market falls. This is a high-risk game as you may miss out on getting back in, or the market may go a lot higher before falling. This sort of game is all about timing and could end up costing you in the long run. I would recommend that you merely hold more cash than normal, and do not rush to get it back in the market when you sell something. Look for value, it is still out there.
 
PS – be very careful of the small mining stocks, it is like playing hot potato, you do not want to be the last person holding it.