The Market Wrap Friday 8-7-11

Back in the trading range. Or are we?

By Jason Fittler

The markets staged a nice recovery last week getting back into the 4700 range. 

It is hard to tell what the catalyst for this move was. I put it down to the big fund managers once again buying at the bottom of the range; I expect to see the same people selling once the markets get back above 4900.

I had expected to see the market travel sideways last week as we waited for the announcement on the Carbon Tax. The Carbon Tax will have a large impact on the market and on the lives of everyday Australians.

At this point we need to factor this change into the business we are looking to buy and decide which companies are going to be most affected.

I think the next couple of weeks will be very interesting both politically and economically.