It would appear that in the short-term the market has turned negative.
For some time companies have been looking overvalued and it now seems that investors are getting nervous as our market continue to move lower.
I expect that the market will find support around the 5100 points, based on recent short-term trends.
Gold has not rallied over the past couple of weeks as such we are not seeing a flight to safety. Perhaps this is merely investors cashing up some of the profits, which they have made in the banks and top mining stocks. I know we have taken some profits lately.
I still see some good value in the market as we have been buying AMP and are looking closely at Woodside at the current level.
This market is for the long-term value focused investor, NOT for the short-term trader or investor.
At present any bad news such as that for Chorus Limited will see shares over sold while good news like the recent announcement from Metcash will see large one day gains. These are both over reactions as the professional investors fight it out to beat the market.
While this volatility remains in the market there will be opportunities for the long-term value investor.