Daily Murmur 04/11/10

by Gary Glover

We got the news that the market was expecting, QEII was $600 billion, slightly above the market view. Is it a case of buy the rumour, sell the fact or is the market going to continue to march higher ?

The Dow Jones Index is still congesting under the previous high, so still no real resolution here. The fact that we haven’t sold off yet is starting to suggest the market could have a few more legs but we will find out soon enough.

My gut is telling me the market is a sell but price action is not showing much weakness and suggests higher levels. The RBA interest rate hike will just fuel the Australian dollar to higher levels short term as the differential between our interest rate and U.S. rates widens.

WPL is the standout could finally breakout to higher levels.

Disclaimer

Gary Glover is an Authorised Representative (Rep No. 259215) of Novus Capital Limited ("Novus"). Novus is a holder of Australian Financial Services Licence No 238 168. Novus, its directors, officers, associates and employees each declare that they, from time to time, may hold interests in financial products and/or earn brokerage, commission, fees or other benefits from financial products mentioned in this e-mail or attached documents. Unless specifically stated within this page or an attached document, any information communicated by this e-mail constitutes unsolicited general financial product advice which has been compiled without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you need to consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance or relate to a future matter.