Market Wrap - Week Ending Friday 13th June 2008

Another week with a lot of ups and downs, unfortunately more down then up. As you can see from the below chart the market has made a solid move below our support line. I do not expect to see the market recover in the short term, in fact I expect to see further weakness over the coming month. Sure there might be the dead cat bounce along the way but fundamentally we expect to see a poor reporting season.

So what do we do? 
1. Sell out anything which is putting your capital at risk. Recently we have been selling down Babcock and Brown as the game now is to preserve your capital.
2. Hold those good quality stocks through the market volatility as with all down turns in the market this one will pass.
Until next week.