I cant explain why. It makes no sense.
Dow up 2 days in a row yet XJO tanks.
Maybe I should buy shares instead of another house?
Im looking for high div yields, might live off the income for a while.
Hi crashy,
I think XJO might be falling due to increasing likelihood of an interest rate rise in Australia next month. DOW on the other hand is going up because of talk of 50-75 basis point reduction in interest rate in USA.
I would say you should buy shares when the market has started recovering….it is still in a downtrend and you don't know how much more it will drop. Shares seem to be easily breaking most support levels/trend lines at the moment. I believe all this uncertainty in share market may be a good thing for property market because people will start moving money to property market.
Hope this helpsIf the sudden drop of the All Ord to less than 6000 prompts you to buy more Aussie shares, you assume that prior to the drop that Aussie shares were properly valued. This drop may be an overreaction but it also may be a correction. Unless you know the intrinsic value then you won't know whether to buy or sell.
Also, what happens in America won't necessarily happen in Australia. There is short-term correlation between the two market but they are fundamentally different. E.g. in Australia there is a bias towards resource companies. There are hardly any health or tech companies in the ASX200. Because of this, the dot-com crash didn't hurt the Australian economy as much as it did the American economy.
I think its that china growth is reliant on the U.S to buy the crap they make. Recession means they will buy less crap from China, which means growth may stall. This may cause resources demand and prices to fall hard. Our resource stocks have priced in perfection.
Plus our banks ARE exposed to sub-prime, regardless of how you cut it.
Insurance is suffering cos weve had a lot of storm payouts.
What sectors do we buy?
You dont at this stage you look to short and then appraise the yields as time goes by.
Richard Taylor | Australia's leading private lender
HMMMM … Hello …
In my opinion I believe that the market is fueled by FEAR and GREED … I don't believe that the sub-prime is the only issue, if you read the papers the OVERALL sentiment is an opinion that the USA is going into a recession … This will create fear in other sectors other than banking and finance.
Fear and Greed … nothing more nothing less … the secret is and always has been "buy low and sell high"
Oh if only I bought BHP or AMP or…… I could have been rich today – famous words fron share traders he he
D
well excuse me mr expert
and just what is “low”?
plenty of people thought Weds prices were the “low”
todays bargains are tomorrows margin calls….
fear and greed huh. wow, Im stunned. never heard that one.
guess I better send back that Diploma of Financial Markets (high distinction) and stop trading full time in forex and CFDs.
Richard, its too late to start shorting now. There were signs months ago that recession was coming. When XJO was 6700 I told people it was the start of a bear market. I was laughed out of town.
Wow Mr now it all.
Too late is it to short. Perhaps i might just throw those Elliot Wave charts right out of the window.
The first 9 years of my working life At Chase UK as a SWAPS Trader counts for nothing.
Trading full time are we now. Oh really and what about the Recliffe refurbishments is that spare time work.
Low is when the smart money have decided that enough is enough and start to accumulate stock in volume.
God your type make me laugh.Richard Taylor | Australia's leading private lender
Crashy,
is it possible for you to get involved in just ONE thread where you don't end up getting into an argument with someone and attacking them?
What is wrong with you?
Some people in this post are talking about making money only when the share market is rising.
What if you could make money on any share market in the world no matter if the share price is going up, down or even sideways, it's just a matter of knowing which strategy to use, when and how to mitigate your risk. Education is the key to learning about these strategies. Want to know more, just email me or reply to this post.
Rachel
lol, thats rich coming from you L.A
wealths post was condescending and deserved a slap.
Richard, not sure why you spat the dummy, my post was CLEARLY directed at wealth, not you. Perhaps I should have said IN MY OPINION, its too late to start shorting. You may be right, there may be further falls. But I think risk/reward has flipped to the long side.
now if we can all be civil, lets help each other to make some $$$$
A SPI trader I know says:
"looking for a bounce on the 17th..price target 5710..see how it goes"
she is wrong about 1% of the time, I kid you not. aka acouch on hotcopper
turns out the sun comes up 3 hours before ASX opens, and goes down about 4 hours after ASX closes. Imagine that, doing work outside of ASX hours. Nah, say it isnt so!
also, Ive just been told that forex is a 24 hour market……..Im stunned……..did you know this?
geez, I might be able to trade AND renovate. Imagine my surprise! Here I was thinking that I couldnt possibly walk away from the computer since there is no such thing as wireless laptops, phone alerts, CNBC or anything else that might let someone not watch the computer screen every second of the ASX 6 hour day. me so silly! another thing quite amazing, is that CFDs are available on stuff worldwide, not just ASX. And amazingly, not everything trades during the ASX day, seems there are different timezones in the world………freaky!
next thing someone will tell me the ASX is going to start not being open on the weekend, which means I can "refurbish" for 14 hrs a day. wow!
bad luck for anyone who started shorting at yesterdays open, XJO up 100+ points since, so far
ooops. Centro has taken another dive.
burn mofo burn
anyone who touched it deserves to fry
Im looking for XJO to fall to 5400.
if you double the market highs / lows for 1999 – 2003, you get the current ones.
2700 x 2 = 5400
plus, long term trendline is there
thoughts?
here is a few div yields (ex FC’s)
TLSCA 9.5%
IAG 8.2%
SUN 7.2%any others that are good?
Have a look at ZFX for yield – they paid $1.40 dividend last year and the share is trading just over $10 now.
WWA 6.41%
CCP 5.9%
QAN 6.47%Looking for instalment warrants, 2 yrs out, at the money
for the first time in years, positively geared shares is a possibility.
self funded instalment warrants are lookin good.
Hmmmm wasn’t the market around 2200 before Oct 87.
How does a trend line from 87 pre crash until today compare
geez, I might be able to trade AND renovate. Imagine my surprise! Here I was thinking that I couldnt possibly walk away from the computer since there is no such thing as wireless laptops, phone alerts, CNBC or anything else that might let someone not watch the computer screen every second of the ASX 6 hour day. me so silly! 
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