Wednesday, August 3, 2011

Market Panics.. Good Opportunity?

Sp500 fell off 2.00% last night and this is spooking all the buyers.

I still think we can buy this oversold price action, especially in high yielding plays/ high quality plays.

Continued USD weakness -
AUD got sold off hard yesterday on RBA comments about interest rates, however, it looks to be holding the 1.07 line in today's trading, near the bottom end of the rising channel in the daily. This is actually a 'healthy' sell-off for the continuing uptrend in AUD.

Suprisingly, the Euro held up fairly well and this is giving me small clues that perhaps equities are not selling off risk so hard.

I get a sneaking suscipicion that this current sp500 sell-off isn't an equity to bond market trade (i.e flight to safety); it's just a re-allocation of funds between US to other better yielding equities for the time being.

A potential catalyst could be an unexpectedly good payroll number on Friday. We'll wait and see.

China equities remained flat today, Aus200 is very much near the bottom of it's range - this is the time to load up.