The Market Wrap 1-8-14

By Jason Fittler

Friday saw the market have its largest pull back since February this year.

This sparked speculation that the market is primed for a pull back.

Keep in mind the market put on 4.5% in July so some profit taking would be considered reasonable.

China came out with confirmation that they are in track to achieve 7.5% GDP growth this year.

The US economy continues to report that their economic recovery is in place and gathering speed.

Apart for Argentina defaulting on their bonds there is no bad news in place to make me think that our market is about to tumble.

Any pull back could see our market back in the range of 5400 to 5300 over the coming weeks but I suspect we will find support at these levels.

Political we are starting to see the winds of change start to blow through as the government looks to sell their budget and get economic reform in place.

The economic reforms will take time to filter through the economy but you need to keep in mind that the recovery needs to start somewhere. 

The economy may not have bottomed yet but we are certainly approaching the bottom.

I will be using the dips to grab some bargains.