The last few months had been quite volatile in the market.
The below chart shows we had a good run from February through to May before the pullback that started in May and ended in early July.
At present the market as shown above in trading in a channel that is where I expect it to stay in the near term.
Always remember that the market is forward-looking. It will tend to trade in the channel like this when there is no information to point it either way.
At present, we do not see any strong signs of reduction in unemployment, new infrastructure projects getting up or reform to increase efficiency or productivity.
Interest looks to be remaining the same for now and a hint that they may increase.
Banks once again must tighten lending through recent legislation brought in which will slow the housing investing market. As such, I expect that the market will remain within this trading range for now.
In this sort of market, we need to be looking for individual opportunities.
One we are watching at present is GOLD, which has slipped back to 2010 prices, this puts pressure on many Gold miners as around this level they are approaching break even.
However, further drops in the price of Gold many provide a good opportunity to build a holding in this sector.