By Jason Fittler
Market is looking for support.
They say a week is a long time in politics, Kevin Rudd would agree.
In the stock market, you can live a lifetime in a week. Last week has been no different; the market has been hit with an onslaught of news. Telstra gets $11 Billion from the government and as such shareholders will see the price move higher. Sundance Resources loses it board and will need to re-build. Elders came out with another downgrade and wipes out $100 million of shareholders value and Iress hit a high and profits can be taken.
The All Ords however has stalled at 4500 and is looking for some direction; if the market falls below 4500 I do expect that we will see it move close to 4000 and quickly. If it holds at these levels I do expect a slow increase back towards 4800 and beyond.
Traders you may want to short the market, I would use options to hedge my bets.
Investors continue to pick up those blue chip stock paying high yields on good cash flows.
My pick right now is Campbell Brothers but make sure you take a look through your portfolio to see if you have enough in the banks, insurance, infrastructure and media assets as well.
The good news is that fundamentally our market is in good shape. If we can just get the government to settle down and stop making grand sweeping statements in a bid to get re-elected we will all profit.