The Market Wrap 13-1-10

By Jason Fittler

USA reporting season.

After a strong market through December we start to move into the US reporting season once again.

As you can see for the downturn over the last two days of the chart it has not started well. We are looking for strong retail sales over Christmas and strong underlying cash flows.

I expect 2010 will be the year of the US market and I expect to see the large US companies re-capitalise themselves, US interest rates move up and their dollar improve. This should push their market higher.

Short term we can expect to see a little pain as I think retail sales will disappoint.

As you can see our market struggled to stay above 4900 and has started to move back towards the trading range of 4800-4500.

In my books this is a buying opportunity, there are plenty of good long term, high yielding stocks to buy in this market.

The top line of my chart is 5200, this is where I expect to see our market move in the medium term.

If you are a long term investor this market is providing you with plenty of opportunity.