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11/10/19
09:28
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Originally posted by paddington bear:
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Another day of trading with Wall Street still stuck in this band that we have had to endure for the past week. Interestingly, my Geniuses have still only got 57% of their funds in the market – the same level as last week. I suspect that while there is so much cash on the sidelines it will improve the chances of the market having another go at the overhead resistance. It would be most unusual for a bull market to end when these highly paid fund managers are sitting on cash. Normally they would have spent the lot and I have seen them leveraged long at the top of the market and leveraged short at the bottom of major bear markets. Hence why I refer to them as my Geniuses!! Down at the Funny Farm, there was complete and utter confusion. The US dollar was weaker, the pound stronger (!), Yen weaker and the Aussie better. Nothing clear at all. Any wonder I call the currency pits the Funny Farm…. Gold was a bit weaker and is back sitting in the support range of the past couple of months but palladium was better and palladium has led this bull market in precious metals. But the good news is that finally copper looked a bit better. I think we might be in the process of seeing a major bottom in the copper market. Don’t know why that should be the case but let’s see how it pans out. I don’t think I could over emphasise how important it would be to see a major bottom in copper – has such an affect across so many markets. Crude also held the support zone. I also noticed that cobalt had a good day. I have been watching this market to see if this is a major bottom that it is building. Be jolly nice if it is. The other factor that caused such confusion was that interest rates ticked higher in the US. Could money run out of bonds and back into stocks? Would be interesting if their rates went up when there are so many calls for cuts. This game can be quite amusing at times. Australia is caught in the middle of this utter confusion. Stronger copper is always a good indicator for us so it would certainly help our market if this is a major low in this closely watched commodity. The major stocks that make up the 20 Leaders index have been pretty weak with only a few like CSL and TCL carrying the can. Mind you TCL makes money every time we all get into our cars. So, as usual our poor little market is going to have to face the vagaries of what is occurring overseas with just a bit of interest in a few stocks and some excitement in the spec end – as I said yesterday, don’t be the bunny left carrying the bag in these stocks. Or to be even more precise, don’t be the fodder for other people’s money-making campaigns.
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Stronger copper is sometimes not always good - where I live nearly every sporting field has had its copper wiring stripped out of the lighting by vandals - hard way to make a living I guess.