The Market Wrap Friday 24-7-09

By Jason Fittler

Next stop 4300... all aboard.

Last week was good news week; this was reflected in the movements in the market with the market breaking through 4100 yesterday, which makes me think that the next stop is 4300.

Earnings are coming out above expectations and forecasts are on the upside, we still have 4 weeks to go before Australia is finished their reporting season but if the US is a indication of what to come then I will be wrong on my predications. At this point it is looking like this reporting season is going to out perform and the market will move higher. 4300 is the next resistance point.


The recession is not over, there is bad news to come, and unemployment will rise so to will interest rates and inflation. For the individual worst is to come, but for companies the restructure is about 6-12 months away from completion.

From here I think it is time to start entering the market. Buy the dividend and do not worry about the capital. Look in the top 20 there are plenty of opportunities there.

A wise man once told me, as long as the company has a good underlying business, and the cash flow to maintain its dividend, then the price will take care of itself.

Now is the time to pass this advice on to you.