The Market Wrap Friday 31-7-09

Reporting season! What will it bring?

August is here and reporting season has started. Over the coming two weeks we will hear from the likes of Newscorp, CBA, Telstra, Cardno, Newcrest and Rio Tinto. This will allow us to start forming an opinion on how the recovery is travailing.

It will also allow us to look for bargains and snap up good blue chip shares at a discount. Now is the time to start looking to be fully invested.

We have also seen the market back to 4300, next stop in my book is 4800, however, depending on how the reporting season goes we could see a little dip before the market pushes up to 4800.

For now I think it is time to start looking to be fully invested in the market.

You should also start think about taking profits on stocks, which have performed well like BHP and CBA.

Finally it is time to look at your gearing levels once again, the best time to gear up is when the market is low, if a dip is on its way then it would be the time to borrow to invest.