The Market Wrap 19-7-13

By Jason Fittler, Financial Adviser Townsville

Another week has rolled by and although there has been a lot of economic and political news there was little action in our markets. 

Investors seem to be cautious to push the market higher while there is so much uncertainty.

Technically looking at the market, expectations are to the downside as the market has been unable to move above the resistance level. This is a sensible position to be in while there is this much uncertainty around.

When we dig a little deeper we note that both the top 50 and small ordinaries index were flat this week, but the midcap 50 index has fallen as investors pull out of this sector.

Given that the 10-year bond rate has also fallen I will assume that investors are once again moving into cash. Gold has stayed steady this week after an increase over the past couple of weeks.

The Australian dollar continues to lose ground to the US.

The US markets continue to be able to push higher. I suspect that confidence has returned to the US markets after the recent announcements from the Feds regards to momentary policy.

In Australia we are still finding opportunities but they are no longer in the usual places.

Bring on the election.