Daily Murmur 04/11/10

by Gary Glover

 In this case my gut feeling was incorrect and the charts were correct.  We warned yesterday that price action was looking very firm and the recent consolidation just underneath the previous high, not selling off was starting to look bullish.  Our previously noted resistance in time just held the market back for the last three weeks and now we should rally for a short period.  I have no resistance in time for another three weeks, so I would expect a rally into late November at the very least.  For the time being the market appears very strong so we should continue to rally in the short term.

WPL looked like the standout yesterday and this should be the start of a very large rally.  I think MQG is another stock to monitor in this rally.  If the market continues to rally Macquarie will be a big beneficiary as this means more corporate transactions, capital raisings and M&A activity which means more fees for Investment banks.  This story will grow and so will the confidence to go back into this stock.

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.