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.