The market is starting to mark time.
Volatility is picking up as the traders look to benefit from any news at all, good or bad.
You can see on the chart below that the market has now restricted itself to a sideways move.
The big question is, which way and when will it break out.
Until the Feds start to implement their slow down in monetary policy I expect that this sideways movement will continue.
Back home the past weeks has made the economic climate even more uncertain with Kevin 07 now Kevin 13.
The media can talk up the economy all they want and continue to sprout off about the property market finding a bottom but the truth is that it is tough out there. Talk to the people who have lost their jobs there are no replacement positions.
Business is on hold until certainty is provided.
As for the market, I am poised and ready to buy up on weakness, but not market weakness in general. I am looking for those individual companies, which have had a poor result and are now trading below intrinsic value. This is where the profit for the next 12 months is hiding.
Finally, 1300SMILES at $6.50 this week on large volume, great result.