By Jason Fittler
If you read the article in the Townsville Paper on the 05/03/2010 by Daniel Goulding (of my office) you may be wondering who to follow about where the market is heading.
If we take a look at the below chart you can see we closed Friday on 4767 points, once again we are getting close to the 4800 mark which is where we have seen resistance in the past. This time it has been a slower move up. We are still experiencing some resistance to the market moving further ahead and we are also seeing most of the gain coming from the big blue chips. The small cap stocks are struggling in this market.
To me this is an indication that the market will struggle to reach new highs at this point in time and we could expect to see a pull back in the near future.
So who should you follow? It depends on what you are trying to achieve.
For long term investors use the opportunities to pick up quality stock paying a large dividend, the two which come to mind are Spark Infrastructure and QBE, I grabbed some for my portfolio this week.
For the Traders, pay close attention to Daniel’s calls perhaps take a look at selling some covered calls.