Time is your friend, impulse is your enemy
September 21st, 2009 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9820.2 | 36.28 | 0.4% |
| NASDAQ | 2132.86 | 6.11 | 0.3% |
| S P 500 | 1068.3 | 2.81 | 0.3% |
| FTSE 100 | 5172.89 | 8.94 | 0.2% |
| Nikkei 225 | 10370.54 | -73.26 | -0.7% |
| ASX 200 | 4,693 | -21.7 | -0.5% |
| COMEX Gold - Dec 09 | 1010.3 | -3.2 | -0.3% |
| COMEX Silver - Sep 09 | 17.065 | -0.2 | -1.2% |
| COMEX Copper - Sep 09 | 278.5 | -11.1 | -3.8% |
| WTI Spot | 72.04 | -0.43 | -0.6% |
| AUD-USD | 0.8673 | -0.0049 | -0.6% |
| Aluminium | 1922 | 8.5 | 0.4% |
| Copper | 6231 | -71 | -1.1% |
| Lead | 2171 | -70 | -3.1% |
| Nickel | 17305 | -150 | -0.9% |
| Tin | 15100 | 100 | 0.7% |
| Zinc | 1906 | -22 | -1.1% |
The Australian share market is likely to open marginally higher this morning on a mixed lead from offshore markets.
Wall Street made moderate gains on a day of consolidation and profit-taking but the Dow Jones Industrial Average hit a fresh 11-month high of 9,820.20 after climbing 36.28 points, or 0.37 per cent, on the day.
A busy week ahead for Economic data with the Reserve Bank board meeting expected to set the tone for the senate inquiry into the economic stimulus.The Australian Bureau of Statistics will release data on new motor vehicles sales during August, which is a key component of consumer spending.
Dow approaches 10,000
The Dow is less than 200 points shy of the 10,000 level, which it could potentially break through by the end of the week. The Dow is up 3% for September and nearly 50% from its Bear market low in March. However, just as the stock prices didn’t go down to zero in March, they will not go straight back up either.
Company earnings have dwindled, Washington is in gridlock over health care and financial regulation, banks are continuing to fail and unemployment is fast approaching 10%. Yet the economic data being issued shows that the worst of the recession is over, a theory echoed by Ben Bernake as he staked his credibility last week saying the recession has likely ended. The market propelled itself on such a notion.
As this is not likely to be a V shaped recovery, at some point a correction is inevitable. Just as we cannot predict market bottoms it is not viable to predict when the correction will eventuate. Ultimately it will be healthier for the market to have a correction, as for now it is a race to 10,000. In the interim it is okay to ride the current wave of positive market momentum.
Buy & Write
Current market conditions are continuing to benefit many of our clients who are profiting from the buy & write strategy. Freeman Fox clients, under the guidance of their broker, are successfully generating 1%-3% per month on their portfolio.
If you are new to options trading or unsure if this strategy if appropriate for your portfolio, please feel free to contact a Freeman Fox broker on 07 3031 9960.
Quote of the day
“Time is your friend, impulse is your enemy.” John Bogle.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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