Great quarter, where to next?
October 1st, 2010 by Patrick Pecci
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,788.05 | -47.23 | -0.4% |
| NASDAQ | 2,368.62 | -7.94 | -0.3% |
| S P 500 | 1,141.20 | -3.53 | -0.3% |
| FTSE 100 | 5,548.62 | -20.65 | -0.4% |
| Nikkei 225 | 9,369.35 | -190.03 | -2.0% |
| ASX 200 | 4,582.90 | -62.1 | -1.3% |
| COMEX Gold - Dec 09 | 1309.6 | -0.7 | -0.1% |
| COMEX Silver - Sep 09 | 21.821 | -0.131 | -0.6% |
| COMEX Copper - Sep 09 | 365.15 | -1 | -0.3% |
| WTI Spot | 79.97 | 2.11 | 2.7% |
| AUD-USD | 0.9672 | -0.0024 | -0.2% |
| Aluminium | 2,314.00 | 20.5 | 0.9% |
| Copper | 8,053.50 | 37 | 0.5% |
| Lead | 2,262.00 | -10.5 | -0.5% |
| Nickel | 23,390.00 | 190 | 0.8% |
| Tin | 24,650.00 | 295 | 1.2% |
| Zinc | 2,176.00 | -11 | -0.5% |
Dear clients and investors,
The 3rd quarter of 2010 saw exceptional gains in both Australian and global equity markets, with the XJO rallying 6.5% even though the last 2 trading sessions of the quarter saw the markets pull back around 90 points.
US markets outperformed our local bourse, with both the Dow Jones and S&P500 up over 10% for the quarter. We also saw record levels for gold, trading as high as US$1315 per ounce on continued USD weakness and the market’s view that the US Fed would continue pumping money into their economy known as opening the Fed window, with continued easing of monetary policy also by the federal government. Some investors in the market place feel that gold is another bubble waiting to pop and i tend to agree. We are beginning to see divergence between gold prices and gold stocks, with the latter failing to make fresh highs on the back of a stronger gold price...for those investors who are currently long gold stocks, it wouldn’t hurt to look at hedging your position to at least locking in some profits or protecting your capital.
Given the overall strength during this quarter, there may be some short term profit taking and we are happy to sit on the sidelines until we get a clearer picture of where the market is heading for the short term. We are keeping a close eye on better entry levels over the following stocks, with the view to sell premium on a bounce:
ASX, BHP, CSL, FMG, LEI, LLC, MQG, NAB, NWS, QBE, STO, TLS, WBC, WDC, WES, WOR & WPL.
Happy trading
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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