The Market Wrap - Friday 11-9-09

By Jason Fittler

Who do you believe?

My technical guru Daniel has been sitting on the edge of his seat all week expecting a fall in the market. He conceded at the end of last week that although all of his indicators are pointing for a drop it may not happen in the short term. Last Tuesday we saw the 180 degree turning point; this is a key technical indicator being 183 days from the low. There is typically some sort of retrenchment at these levels.

Daniel is not alone, many commentators are advising that the market is set for a pull back, but at this stage it continues to move up. Looking at the above chart and the strong move we saw last week it would indicate that the market is looking to move up to 4800 in the near future.

My view, Blue Chip all look overbought, there is still some great buying in the Mid Caps and some good speculative plays in the small caps. If you are chasing income look towards property and infrastructure as well as the likes of QBE and ORG. If you want some growth take a look at the mid caps - Watpac is my pick see below for some more information.

If you are chasing income keep holding the blue chips and do not worry if the market does fall a little. At this point my only real concern is if the market does not pull back short term we could see a large move mid next year.