Down week for the market.
Last week the market took it first serious drop since the start of the Bear market rally. The market lost 150 points or 4% for the week.
I suspect that we will see further declines as we move closer to reporting season or “Confession Session” as it is known.
Once again this week we saw a flurry of capital raisings as companies look to get cash rich before the end of the financial year. There are plenty of opportunities out there right now the two key ones are RIO through the rights issue and ANZ through their share purchase plan. Make sure you do not miss out on them.
Moving forward I still expect to see the market pull back however I do not expect it to get back as far a 3300. I would expect that the market will move back into the 3700’s before moving higher towards the end of the year. I still expect to see the market hit 4500 before December.
This is a stock pickers market; I expect that there will be plenty of opportunities over the coming 6 months to grab a bargain you just need to have patients.
Do not forget to grab your profits when they come.