Volatility beckons
September 8th, 2010 by Lawrence Grasso
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,340.69 | -107.24 | -1.0% |
| NASDAQ | 2,208.89 | -24.86 | -1.1% |
| S P 500 | 1,091.84 | -12.67 | -1.1% |
| FTSE 100 | 5,407.82 | -31.37 | -0.6% |
| Nikkei 225 | 9,226.00 | -75.32 | -0.8% |
| ASX 200 | 4,573.20 | -2.3 | -0.1% |
| COMEX Gold - Dec 09 | 1259.3 | 8.2 | 0.7% |
| COMEX Silver - Sep 09 | 19.695 | -0.254 | -1.3% |
| COMEX Copper - Sep 09 | 347.05 | -2.95 | -0.8% |
| WTI Spot | 74.09 | -0.51 | -0.7% |
| AUD-USD | 0.9108 | -0.0067 | -0.7% |
| Aluminium | 2,110.00 | -38.5 | -1.8% |
| Copper | 7,520.00 | -140.5 | -1.8% |
| Lead | 2,126.00 | -34 | -1.6% |
| Nickel | 21,635.00 | -275 | -1.3% |
| Tin | 20,875.00 | -500 | -2.3% |
| Zinc | 2,137.00 | -9 | -0.4% |
U.S. stocks were lower Tuesday as the market cooled off from last week's rally while worries over the health of European banks recirculated. The Dow Jones Industrial Average dropped 107.24 points, or 1.03%, to 10340.69, snapping a four-day winning streak. American Express was the measure's worst performer with a drop of $1.71, or 4.1%.
On the local front today Australian equities will see some profit taking following on from the 1% fall in the States. The SFE futures suggest the market will open down around 30 points but this may come off further throughout the day. I do believe the correction will be short lived as it has been seen that investors/traders have found value in the market every time we have seen it dip back down around the 4400 - 4500 level.
The markets reaction yesterday with the win by Labor showed that investors were more concerned with having a governing body in place instead of a particular political party. With the certainty of Labor/Greens in power there is the potential for further reform on the Resources Tax. The market should now focus on China/Asia and any weakness in resource companies because the political situation should be seen as a great buying opportunity.
Stay within the top 100 and try and keep it Blue Chip. We are going to have a whippy ride for the next couple of months, but keep in mind we are acquiring for the long term and all the premium you sell will help smooth out the ride.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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