What has generally been a down week has ended on a good note.
The US debt ceiling issue has kept the market guessing but the announcement on Thursday night in the US that the debt ceiling would have a temporary increase to relive the pressure has seen the US bounce along with Australia.
What this is showing is that the economy is still weak and the market nervous as trades look to squeeze profits out of any news in the market place.
We have been looking across the mining sector this week and found some value in the sector.
It is a tough market to be comfortable to buy shares in, but there are still a number of quality companies, which are trading lower than fair value.
The US debt issue will continue to dominate the focus in the markets until it is resolved, but I’m still comfortable that the short-term trend for the market is down. Because too many quality blue chip companies seem to be over valued at present.
We are heading into the low for the economy, as it gets tougher out there for small business and jobs. But there are some signs of life with the Government looking to focus on spending to create jobs.
For me the market bottom is in and I expect the worst part of the economic cycle is about to start.