Upfront Investor Australian Share Market Report 18/11/11
Friday, November 18th, 2011Listen to this Australian Share Market Report via audio podcast just click Upfront Investor
The agreement made by the US to sell Uranium to India despite their continued refusal to sign the UN Nuclear Proliferation Treaty doesn’t make it right for Australia to do the same thing. However, this is exactly what the Federal government have decided to do.
What amazes me is how this issue has slipped through to the keeper whilst we have been distracted by global events and the timely arrival of Barak Obama. This agreement to sell Uranium to India is a big deal and like many changes to government policy I wonder what we are not being told.
Given that Queensland is sitting on a huge debt and with the Commonwealth games to be held on the Gold Coast in 2018, one truly wonders where Anna Bligh intends to get the money to meet funding requirements.
Maybe we should watch closely to see whether the Queensland government are forced to reverse their moratorium preventing uranium mining in the state as the economic opportunity to tap into reserves, estimated to be worth $20bn, is likely to outweigh other important considerations.
What do we expect in the market?
The Australian share market has continued to frustrate investors by merely trading sideways for the past four weeks. What is interesting is that despite a strong start on Monday, this week we have seen more days down than up, which could be a sign of things to come.
Even the release of positive manufacturing data, improved housing and jobs data out of the US could not halt the decline as the market continued to trade lower into Friday’s trade. On the flip side the falls have not been large, and so this current sentiment may not last long.
The past two weeks have seen a lack of positive momentum which is understandable given we still have not seen a resolution from Europe. Also from a technical perspective, the market is due to pull back for one to two weeks to again test support before building sufficient momentum to break through resistance at around 4500 points.
Given this, the current short term move does not come as a surprise, and provided the market continues to hold at around 4100 to 4200 points it is more likely to make the next move up rather than fall.
My advice is that now is a time to be patient while ensuring stop losses are in place to protect capital. This will allow you to be ready for the next rise up to Christmas and possibly into January.
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Chief Analyst, Wealth Within
Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’, has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment advice to traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.For more information please visit www.wealthwithin.com.au





