The Market Wrap 13-8-10

By Jason Fittler

The start of the final correction!

The market was providing little in the way of a direction; last week is a different story.

We experienced some major down days in the market last week which now gives a clear indication that the Bears are still alive and kicking in the market place.

One of the big sell downs was Telstra with their announcement regards increase spending to retain clients. This was out of left field for most analysts and the stock was hit hard down 10%.

There was also Qantas whose profit was below expectations, not for me, airlines are a no fly zone in my investments portfolio. I would rather be in Airports, this is where the money is, take a look at Macquarie Airports.

As you can see in the below chart the market has moved back below the 4500 support level and although you may see it above this level in the coming week I do expect to see the market move lower in the short term.

This is a buying opportunity, if you are sitting cash do not wait for a bottom, instead start to dollar cost average into the market as I expect the last throws of the Bear market will be over in the coming months and if you wait too long you will miss out.