Posts Tagged ‘CAC’

    • Friday 17th October 2008 Cube Morning Wrap

    Friday, October 17th, 2008

    Presented by Michael Hevern
    Cubefinancial

    Click here to watch the presentation.

    or

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    Transcription below:

    *********************************************************************************

    Good morning and welcome to Cube Wrap for Friday the 17th of October.  I am Michael Hevern for Cube Financial.

    The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile.  Again, it is general advice only.

    Well, the Dow went through another roller-coaster ride last night.  This is intraday chart we have here indicating that we possibly could have a double bottom.  We would need to trade above the highs of earlier this week in order to confirm that, but there is a fairly low risk going to be there that obviously institutions are looking at making an entry with a stock below last week’s low.  We can see the focus there was on earnings in the US and we also saw Citigroup has losses on the write-downs.  Their third quarter loss was $2.8bn for Citigroup and we saw write-downs of $4.4bn with securities and banking as they blame the weakness in revenue.  They also cut down 11,000 jobs in the US.  The shares were down 4%.  Meryl Lynch was also down after winding their write downs to $9.5bn and the third quarter loss of $5.5bn, the shares is cutting 98% of its exposures to the US and the shares were down 4%.  We also saw confidence in the home building area down in October and the September figures were also revised down.

    In the NASDAQ, this number intraday chart, you can see the possible double bottom there as well.  It is testing the lows of 2003.  The market was up 5.5% on the last-hour trading and the DOW was actually up about 4% or 400 points on the last hour of trading as well.  Google reported towards the end of the day and their profits were actually up 26%, which was seen as good and also surprised analysts to the up side.  AMD released their earnings as well.  They did release a fall in profits, but it was better than expected and that a turnaround story there.  Also, the stocks that we look at in the market that impact or which have ADRs in Australia, BHP was up 2.4%, Rio up 2.4%, and saw James Hardie up almost 10%.  US steel was still the makers of the US, up 8%, and the energy stocks Chevron and Exxon were up 5% and 11% on the back of a rebound from the previous day’s sell off.  We saw the oil stocks index up 8% on the session, which is a bit surprising given that oil price pulled back.  Obviously, investors are thinking that oil is getting close to the bottom there.  I will discuss that later in the presentation.  Gold is down 7%, so it has not seen as much of a safe haven.  I think the institutions are starting to weigh back into the market given that volatility is up so high and also the market is retesting the lows of last week.  We saw the DOW up 4.6% on the close and S&P 500 was up 4.2% on the session.  We saw NASDAQ up 5.5% on the close.

    In UK, we saw that market down, looking slightly weak there.  It is a weekly chart I think I have got there.  You can see there that it is still testing the lows of 2003.  It is yet to test the ultimate low there around the 3500 mark.  We saw the energy, mining, and bank stocks in the UK all struggle.  We saw BHP, Anglo, and Xstrata all down between 10% and 15% in the UK, but they did recover somewhat in the US.  This is following on from our sell off as well, Rio down 13% and energy stocks dropped to 12% on the back of weaker oil prices.  We saw BP, Shell, and BG Group down all between 3.5% and 5% on the session.  Banks also struggle with hPlus, Barclays, and Standard Chartered all down between 2% and 12% on the session, and Lloyds and Royal Bank of Scotland were steady.  Elsewhere in Europe, we saw the markets down there as well with the CAC down 6% and the DAX down 5% on the session.

    In the Asian markets, we saw that market also sold off 14% on the session, which was the biggest 1-day loss in the history of the index.  We actually suggested yesterday as it was up, counter trend to everybody else in the previous session.  It did miss on this week on that market, have been exacerbated by the fact that they did have a holiday early in the week, so they play catch up on Tuesday when they get their turn on Wednesday, but now they have pulled back and down to the lows of looking to test the lows of last week.  Same old story, export is lower and banking lower in the Asian markets.  We saw Sony down 13%, Canon down 12%, Honda down 10%, Toyota down 9%, so all the exporters are reflecting the outlook of the global economy and weakening sales revenue figures going forward, and Mitsubishi Corp was actually down 15%, Mitsui down 17%, so the two big financial houses there are also down heavily.  Elsewhere in Asia, we saw Hong Kong down 5% and China down 4.2%, so weakness over there.

    In the commodities market, we saw oil did get close to the $70 mark.  That was on the back of weaker global demand.  Also, inventories were up in the US as well which did calm the situation.  You can see there it is going to test that trend line.  If you can see a rebound from that level, you can see another run up to $5 or $10 in the short-to-medium term.  However, if you believe all the news, then there is only one direction for the oil market at the moment that is down.  Gold was also down as we saw forced liquidations in that sector and I guess the money is being taken out of the gold market and put in to the stock market with the view that we are seeing a double bottom at the moment.  We also see USD strength because of that influx of money into the US markets.  We saw silver down 5%, gold down 4%, West Texas crude down 6%, copper down 6%, lead down 10.5%, zinc down 11%, aluminum up 0.7%, and nickel down 10%, so all those commodities were sold off quite heavily overnight.

    We saw our market sell off yesterday.  This again is an intraday chart just to give you a feel for what is happening and where we are up to with respect to a potential double bottom there.  It would not be confirmed until it traded above last week’s high, but there is obviously low-risk entries trading opportunity there with the lows of just last week being the ultimate stops.  We see the SPI 4% overnight, up over China 6 points.  Woodside reported yesterday and confirmed their forecasts for earnings going forward and also put in 84% rise in revenue. Macarthur coal called profit up $160m.  CSR reported their forecasts back in line.  They did increase them the last time they reported.  They have pulled everything back in line with their previous year’s figures.  NAB is in the news today, rumored to be looking for a capital rising between $2bn and $2.5bn and as a result of that there is speculation whether they will be looking at Sun Corps’ banking assets going forward.  They also have brought forward their annual reporting to Tuesday and it is rumored that their profits will be down around about 11% or $4bn.  Again, cash is key looking at miners.  Many of them are trading below cash on their books at the moment.  So, that is one possible way to enter into the market at the moment.  ASX will open high today and there will be some bargain hunting there, but remember it is Friday.

    Should you have any questions about this presentation, please call the equities option desk or the CFD advisory desk on the numbers provided, and will be available to help.  As always, trade carefully.

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    Wednesday 14th October 2008 Cube Morning Wrap

    Wednesday, October 15th, 2008

    Presented by Michael Hevern
    Cubefinancial

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    or

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    Transcription below:

    **********************************************************************************

    Good morning and welcome to Cube Wrap on Wednesday the 15th of October.  I am Michael Hevern for Cube Financial.

    The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile.  Again, this is general advice only.

    Well the DOW trading at 800 point trading range after 2 days of trading in 1000 points trading ranges. We saw the US government came up with a 250 dollar bank bailout package which will benefit stocks like Citigroup, JP Morgan, WellFargo, and Goldman Sachs and that is where the market jumped 3% on the back of that news.  However, the Rewords started to resurface and again as investors become increasingly concerned about the recession developing in the world economies.  In fact, this will be on earnings in the next 2 to 3 weeks and PepsiCo won the first companies of the rank reported up the markets with disappointing earnings and it is biggest fall since 1987.

    The other stocks in the News in the US included JP Morgan, Bank of America, and Citigroup all benefiting from the 200 billion dollars government capital injection plan and the weakest groups in the DOW were the consumer discretionary stocks.  We saw that SP500 with that index down 0.5%, the DOW was down 0.8% and the NASDAQ most fairly it was down 3.5%.

    So, stocks like Apple, Microsoft, and Cisco were all down around about at least 5% on the session.  We have seen that our interest in the US is a fact that is going to launch an investigation of study on how the banning of short selling impact in the financial sector and it will be interesting to see what are the results of those survey are.

    The NASDAQ said testing was at more loss.  It is up Friday that still not very convincing there.  It ranges to at least close above the 2150 level before you see any follow-through.  In the UK, we saw that market up which was the biggest price.  It ended up 3% on the session and again that was due to government helping to re-capitalize all of the banks.  The banks were mixed in the UK with the bank index rising 3% on the session.  However, the stocks being hit slightly were down again.  We saw the Royal Bank of Scotland and Lloyds and HBOS well down between 1% and 6% on the session extending losses on Monday.

    The energy stocks continued that their recovery with weekly Shell pricing between 6% and 7% and we also saw for the first time since March, the biggest fall in each bank cost or borrowing and the biggest fall this year in 3 months euro rates which is the killer at the moment, the fact that banks companies can’t get financing and banks only had to raise shorter capital and not to be willing to trade between one another.

    We saw the bank prices from the day is highs in the UK with Xstrata along with BHP and Anglo all hitting higher, but that was some follow through in the US.  European stocks were generally higher as well with CAC up 3% and the DAX up 2.7% on the session.  France’s Society raised up 8% on the session as it released the report expected positiveness and profit for the third quarter and it rated it has not experienced significant losses on the structured product activities like other banks.  So, that was seen as a very good report.

    The Nikkei was slight up on Monday, but back yesterday and due to the catch up there, a huge amount of catch up actually, it was up 14% on the session lead by financials and exporters got into the action there as well.  We can see that is a weekly chart there and these testing of the 3 lows and still has a long way to get levels even a month ago.

    We can see on the left hand side there that there it can be considerable with resistance as it moves its way up.  So these things are carried down throughout the elevator shaft some would say. We saw Mitsubishi up 14%, Mitsui Financial Group up 17%, Nmura holdings the biggest Japanese brokerage was short of 16% and the exporters, Toyota, Honda and these were all up between 15% and 18% on the session.  Canon was up 16% and the number of advancing stocks appeared to declining was 67 to 1 and I believe I did a shift to close the market as some stages through the day in order to keep up with the buying orders and that was closing up.

    In Hong Kong, we saw that market close up 3.2% and shares in China was down 2.7%.  Oil sold up again after being up early close to 78 dollars, 75 dollars, this was the key level there and that it closed above 85 dollars before you see any sort of buying pressure there.  You can say that pretty well trending the moving average there that you needed to close at least one or two days above that level, it looks like it is pulled back from the 78.6% retracement level there to up being 100%at the 85 dollar level 27% retracement level around 70 dollar mark which is far across from the 125 dollars.  It was only 3 weeks ago.

    In the metal exchange there, we saw gold down went through fairly volatile at 15 dollar trading range there plus just below the close of the previous day, not very much inputs there.  We saw all the metals down after a fairly good session to previous session.

    We saw silver was actually up 2.5%, copper up 3.5%, lead up 4.7%, but zinc was down 5%, and nickel flat with aluminum up 1.5%.

    In our market we saw these likely to follow US taking a breather with a session of Friday as far as this is down 100 points.  So we expect our market to follow negatively.  We had a couple of stocks in US today, the auctions prices; it has been trying to get on the way for the last few weeks.  Harvey Norman has came out and said that it expects profit to drop by 20% of next year and Harvey Gerald the CEO is saying that he has not seen economic situation like this before over 20 years so that doesn’t bode well going forward. Coles is due to cut the pressure line by 30% and also increasing the home brands by 20% So it is obviously the margins on the home brand are a lot better than normal and also simplifying the production lines obviously reduce the cost in the bank and as well.

    The Australian government came out with a 10.4 billion dollars stimulus package yesterday, 4.8 billion down payments to the pensioner’s payable in December 3.9 billion in spot payment for families and 1.5 billion packages for first time buyers, also 187 million to grade your training pattern positions. They also say that the steel price is still intact for the budget for next year at this stage.  The ASX is likely to open lower again today, fundamental is the key.

    Should you have any questions about the information provided within this presentation, please call the equities options desk on the numbers provided or the CFD advising desk, and as always, trade carefully.

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    Tuesday 14th October 2008 Cube Morning Wrap

    Tuesday, October 14th, 2008

    Presented by Michael Hevern
    Cubefinancial

    Click here to watch the presentation.

    or

    Click here to download the mp3 audio recording (1122Kb).

    Transcription below:

    ************************************************************************************

    Good Morning and welcome to cube wrap for Tuesday morning the 14th of October.  I’m Michael Hevern for Cube Financial.

    The information provided within this presentation is general advice only and you should consult the services of a qualified financial advisor in order to ascertain whether the information provided is applicable to your personal investments strategies and risk profile.  Again it is general advice only.

    Well DOW had another 1000 point range and then it is too close to its top after having a big range on the previous session as well, finished up to 11% for the session and SP500 up 11.6% for the session.  It is a biggest one day cross move in the DOW in its history.  We saw after 90% loss last week, the DOW over 11%, the buying was pretty well for support, financials did benefit quite considerably as well.

    We saw that insurers were up, banks were up and also the miners were up on the back of harder metals prices.

    Of note for our market, ADRs with BHP up 18%, RIO up 20% on the ADRs, and so US steel up 14%, Exxon and Chevron up around closer to 20% and alumina up 10% on the session.  We saw the banks up as well.

    The gold stocks index was 4.5%, where the gold price was down with Newmont up 6%, which seems highly significant compared to the other stocks.  The oil stocks were up 17% in the oil stocks index, so big rebound there.

    We saw NASDAQ up 11% on the session after bounce up to test the 2004 lows and still Bargain Hunt coming into play there.  We saw Apple up for 13%, Microsoft up 19% and Cisco up 12% on the session.

    In the UK, we saw that market jump above the 4000 mark after the significant motor share for the last week.  It was up 8% on the session.  Miners and Energy lead the way with banking sector been mixed.

    We saw that the government came out and said that they are effectively nationalizing the Royal Bank of Scotland and HBOS and rest of their stocks were down on the back of that.  HBOS was down 27% after it was announced that Lloyds had re-negotiated to take over bid from 0.83 of Lloyd shares to 0.6 of Lloyd’s shares. The Royal Bank of Scotland said 9% on the session.  We saw all the banks with Barclays, HSBC and Standard Chartered was up between 4% and 20% on the session.

    Elsewhere, the Insurers were up as well with Prudential, mutual and bank group up between 10% and 20%.  We saw energy stocks bounce up considerably as well with BP, Shell, and BG group, all up between 8% and 16%.  Miners rallied and BHP, RIO, and Xstrata all up between 9% and 15%.

    We saw in Europe, the CAC and the DAX were also up as well around the 11% margin.

    On the Nikkei that market was actually closed overnight, but it reset to bounce off those 2003 lows after being down 24% for the week and 46% here to date.

    We saw in other Asian markets, the Hong Kong market was up 10% on the session after its up with its worst loss in more than 20 years last week and the Chinese market was up 3.6% on the session.

    In the commodities, we saw oil price bounce up to the 81 level, but still gone to 85 dollar level.  There is a key level which goes back to bring us support level in 2008 and we are made to close above that 87 level in order to try another run on towards a 100 dollar level.

    We saw copper prices also down to prices concerning since 2006.  We saw gold down after going through a significant range, finished down at 16 dollars at 843 for the session.  The other commodities of interest, silver was up 1.8%, copper up 8% on the session, lead up 6.4%, zinc up 1.6%, and aluminum up 1.4%, the best after a significant fall previously on all those commodities.

    The gold price actually got up to 875 overnight and it managed to finish at 840 to 850 actually.  So, this being a move from the gold into the equities and it is concerned about whether inflation is going to be a problem over the next 18 months to 2 years based on the pullback and all the commodity prices and also have affected.  ASX prices are going to be significantly lower after oil is credit crisis is resolved.

    On the ASX, we can see there that we did bounce off that 4000 level, finished up 5% for the session.  It was said to follow the US again today as far as up over 300 points, but it is same that there is a key level there which is what we finished out yesterday with a 61.8% replacement of the move from November.

    On the other news of the Australian market, some has come out and said that in fact they are heading out for a better prices for their sale and this of note, there the market again is currently around that 9 billion dollars, but that compares to 8 billion dollars that they paid for Promina and at that time, they did pay for that.  Market capital sum was around at 20 billion dollars as there is significant erosion of shareholder equity in that company since that move.

    BHP has said yesterday that they are concerned about the China’s third quarter data and expected to be weak and that is making them all cautious about the BHP RIO takeover.  BAU still has to make a decision on that and that is not going to be made until January at the stage.

    NSX was in the news yesterday and fell significantly yet again as the CEO announced that he was forced to sell 1.5 million dollars of stock because of a margin call. Fortescue have boosted their board bringing on a guy from Oxiana that should be good for management wise for Fortescue].  Obviously, the Australian government guaranteed those deposits worked a treat yesterday for 3 years they have guaranteed the deposits and on the ASX, we expect that market to open high as a day, but remember fundamentals still pay cash is keen and keep away from those stocks that have debt.

    Should you have any questions about the information provided within this presentation, call the equities options desk or the CFD trading desk on the numbers provided, and as always trade carefully.

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    Friday 10th October 2008 Cube Morning Wrap

    Friday, October 10th, 2008

    Presented by Michael Hevern
    Cubefinancial

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    or

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    Transcription below:

    ********************************************************************************

    Good Morning and Welcome to Cube Wrap for Friday, the 10th of October, I’m Michael Hevern for Cube Financial.

    The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile.  Again, it is general advice only.

    Well DOW had another bloodbath overnight, down another 6% as the market sold off.  We saw the short covering been taken off and that obviously did not help the market as the financials were allowed to be shorted again.  The VIX is again at extreme lows and it must obviously run raw.  We see that this a weekly chart here.

    The lows that we closed on overnight have not been seen since mid 2003, but you can see there that we are actually looking at potential support there that downtrend line, so interesting to see what happens in the next couple of days.  DOW was down 6.3%, S&P 500 down 7.6%, so that is broad-based selling across the market and the NASDAQ down 4.6% and it is at lows on the back of some available economy and expectation of reduced CapEx spending going forward.  We see pretty much selling across the board, AIG down 25%, BHP down 6%, RIO down 7%.  Even the gold stocks were not immune to the selling, Newmont down 8.9%.  The gold stocks index was actually down 6% on the session, the oil stocks index was down 11% on the back of weak oil prices.

    In the UK, it is actually closed before the bloodbath in the US unfolded.  They continue to see selling in the banking sector there, but the miners did rally in that particular market, but as I said it did close before the bloodbath in the US.  We have seen seven straight days of selling in the US and may be that is getting close to the installation stage at this point and only time will tell.  We saw BHP and RIO in the UK up between 5% and 15%, but they were down that amount the previous session, so very much volatile pricing over in UK as well.  We saw BP and Royal Dutch Shell down 2% and 3% respectively.  In Europe, we also saw in that market, the CAC and the DAX were down on the session with the DAX down 2.5% and the CAC down 1.5% on the session.

    In Asian markets, we saw NIKKEI down 0.5%, but again we will expect to see selling into the market again, but it is testing lows, which have not been seen since 2003, and as you can see there, there is no real support level there.  That is the weekly chart yet again on the back of selling of both financials and exporters again.  The oil price was down to just over 84 dollars on the session.  You can see there that those levels have not been seen since mid 2007 and it is looking to those actually trading in the support range say that did offer support back in 2007.  Reserves were surprisingly up in the US and again sliding demand going forward.

    Gold was actually up with a flight to safety there up to 916 dollars as the rest of the commodities were mixed.  We saw silver up 0.8%, copper up 1.5%, lead up 6.2%, 4.7% for zinc, aluminum up 2.2%, and nickel up 1.7%, but crude was down 2.7% on the session.  Expect our markets to continue its sell off.  The SPI was down 4% overnight to 180.  You can see there that the levels we are trading at the moment have not been seen since 2005 and you would expect our market to test the 4000 level today.

    The stories for today is applicable to that were yesterday.  Gold stocks may not offer support today as the experience in the US is an indication.  You can see some profit taking there.  Australian dollar is at 5-year lows and CBA capital rising was fairly well received at that 38 dollar level.  It closed around 42 dollars yesterday, so if you can pick up around that 38 dollar level, then you are doing fairly well.  Sun is still in play as a takeover target.  Financials and miners are likely to weigh as the ASX market will open lower and we would expect the broad-based selling in our market.

    Should you have any questions about the information provided within this presentation, please call the equities and options desk or the CFD advising desk on the numbers provided there and as always, trade carefully.

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    Wednesday 8th October 2008 Cube Morning Wrap

    Wednesday, October 8th, 2008

    Presented by Michael Hevern
    Cubefinancial

    Click here to watch the presentation.

    or

    Click here to download the mp3 audio recording (1193Kb).

    Transcription below:

    ***************************************************************************************

    Good Morning and Welcome to Cube Wrap for Wednesday, the 8th of October, I’m Michael Hevern for Cube Financial.

    The information presented in this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile.  Again, it is general advice only.

    Well, the roller coaster ride continued on the US markets, down another 5% even after our markets staged a brilliant recovery after the surprise of 1% great cut by the RBA.  The volatility index is at extreme showing that emotion is ruling at the moment.  I will talk that out a little bit later, but we saw the Nikkei came out and said that the Fed is likely to cut rates and the market is anticipating a rate of cut of almost or around 1%, which is very significant considering the Fed rate at the moment, 72% and that have a lot of room to move there.

    The government is also coming out and saying that they are looking at providing support for the cooperate paper sector of the market, so that they can get this credit crisis all move in liquidity in the credit markets.  At present, it is expected that the top firms will benefit from this move.  The EU minister’s plan for financial payouts  in the Euro is on with banks as big as Deutsche bank being rumor to have been in trouble as far as capital backing is concerned that has put a big damp now on the European markets in the last few days.

    The NASDAQ was down 6% finishing on its lows and the lows of 2004, it is especially on the backs of poor economic data going forward.  We saw in the US that Morgan Stanley was down 23% that is even after Mitsubishi financial from Japan agreed to a 21% state for 9 billion dollars.  The fall of 23% wiped out 7 billion dollars of its market cap.  The Royal Bank of Scotland also fell 39% in the UK adding to the revise of the financials in the UK sector.  The financial index over in the US was down 5.3% on overnight.

    We saw that in the UK that market was fairly flat.  They are waiting on the Bank of England’s decision which is due on Thursday.   Banks were sold off heavily and materials and energy stocks recovered slightly.  The FTSE was up 0.4% for the session.  The energy stocks recovered with BP, Royal Dutch, Shell, and BG group all up between 3% and 4.5% and the big miners also bounced with BHP, Rio, Anglo, and the Dutch were all between 1% and 11% on the session.

    We saw the banks in turmoil with the Royal Bank of Scotland down 39%, which is the lowest level it has seen for 15 years.  Lloyds shed 13% and Barclays sink 9%.  HBOS also sold off 41% to be the top loser in the FTSE 100.  There is a move to the energy stocks and Glaxo Smith Kline and Shire were up 2% and 3.5% respectively.  Drink groups were up in the definitive line with SABMiller up 10% and Diageo up 5.5% on the session.

    We saw in Europe the CAC and DAX, CAC was up 0.5% while the DAX was down 1.1% that was on the back of these rumors about financial backing of the banks in Europe.  In Asia, we saw the Nikkei down 3% testing its 2003 lows and again it is a similar story that banks were down and exporters were down as well on the back of the sliding economic growth.  The Canon was down 3%, Coke Zero down 2.3%.  Honda and Toyota down around about 4%, Sharp down 8.8%.  Elsewhere in Asia, we saw the Chinese market down 0.7% and Hong Kong was down 4.9% for the session.  I was a bit worries yesterday that was sounding fairly negative finally relieved that yesterday was the fact that the RBI cut the interest rates by 41%, which surprised all the market and so a short rally in the afternoon session.

    The SPI however is down overnight around about 266 points, so I expect the gains of yesterdays afternoon to be within the way yet again.  In the commodities markets, we will see the oil sink up above the $90 mark as OPEC Libyan chief oil minister came out and said that OPEC may cut production if the oil price does hang around below $90 going forward.  There is also a slide out of the USD.  We saw the gold price up to $882, that is on the weekly USD, the fact that there has been so many bail outs there they are going to have to start printing money over there.  The commodities were mixed, we saw silver up 0.8% while the copper was up 1.4%, lead down 0.2%, zinc down 0.2%, aluminum up almost 2%, and nickel down 0.5% and that was after a big sell off in previous session.

    In the market on the ASX today, you look for gold stocks to offer some support.  They have been sold off in last few days, so many good buying there.  We saw CBA has announced that they have bought Bank West for the tune of 201.2 billion dollars that is seen as very opportunistic and going forward as long as the ASIC baking is there, should be a good deal for CBA.  Stockland took the opportunity after the RBA announced a 1% rate cut to raise 300 million dollars at $5.30 which is about what it was trading at before the rate cut.  It is JP Hi-Fi there.  It came out yesterday and said that its business is tracking quite well to the margin with sales on budget and earnings above budget at the moment for the first quarter of 2009.

    Financials likely to be the big suffers in our market today.  We will end it down expect moving to defensive price today.  Stocks like Coca Cola and Fosters had been doing well of late.

    Just before I go I did mention the volatility index being at all time highs, see there that is a blue line, it has spiked to the highest level that has been seen since it started to be recorded they actually record the footscall ratios in and effort to identify the amount of traders or investors long versus those being short.  You can see there the last time it spiked at this level is 2002.  We saw the bottom in March and the market did see a low again right through and to late last year.  We also saw back in 1998, where similar spike in the volatility index or the market raise up for 18 months before pulling back.  So you can see we are at all-time highs the feat that they will gauge, which is its volatility index is at all-time highs and did really hit albeit stabilization on the markets.  We will see a bit of a good run finishing up to 18 months if history repeats.

    Should you have any questions about the information provided within this presentation, please call the equities options desk or the CFD advisory desk on the numbers provided, and as always trade carefully.

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    Wednesday 1st October 2008 Cube Morning Wrap

    Wednesday, October 1st, 2008

    Presented by Michael Hevern
    Cubefinancial

    Click here to watch the presentation.

    or

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    Transcription below:

    *********************************************************************************

    Good morning and welcome to Cube Wrap for Wednesday, 1st of October. I am Michael Hevern for Cube Financial.

    The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile. Again, it is general advice only.

    Well, the Dow had bid recovery overnight on the back of optimism that the rescue plan will get loaded sooner rather then later as still probably 3 to 5 days later, there is plenty of physical support being weighed in there to ensure that this plan does get bloated up. We saw the Dow up 4.7% on the session and the NASDAQ up close at 5% while the S&P 500 broad-based was up 5.3% on the session, so a pretty good recovery there. You can see NASDAQ down suffering 2006 lows, still noted above the highs of the previous session, but they still had recovery.

    We saw Apple recovered 8% and Microsoft recovered 6.7% while Cisco was up 3.5%. Other stocks in the Dow off interest to our market include the ADRs on ANZ and NAB up 15% and 8% respectively, and the BHP and Rio up 3% and 10% respectively. The energy stocks also received a boost with hopping oil price above that 100 dollar mark with Chevron up 6.5% and Exxon up 4.8%.

    In the UK, we saw it up slightly, it did close ahead of the optimists and the pull through in the US markets, and it was up 1.7%, still below that critical, psychological value of 5000. It did bounce of 3-year lows, and we saw some interesting stocks there, generally lead by the financials up and it had its worst monthly fall in 21 years for September, so it glad that September is low, but obviously we saw the banking sector up, Standard Charters and HSBC up 8% and 4% and HBOS shed 13.8% making this fall in the FTSE as Lloyd is in discussion with that particular stock in order to negotiate a takeover plan there. Lloyds also gained 4.3% on the session. We saw the insurers gained as well with Old Mutual and Man group up 9% and 10% respectively and the big miners were also up with Xstrata, BHP, Rio, Anglo up between 2% and 7% on the session. Of interest, the retailers still seemed to be holding out over there. TISCO, the big food chain is up 5% on the session. As I said that it is ready to meet its forecast in 10% rise in the first half profits for the like-for-like sales, so that was seen as a definite positive. The High-End retail groups have fell back Spencer loss of 3.2% on the session after its Swedish pier released disappointing results.

    In the Europe, we saw the CAC and the DAX, the DAX up 0.4% while the CAC was up 2% on the session. Again the banks were the big leaders there. We saw the Irish banks gained actually, Anglo Irish Bank was up 67% and the Bank of Ireland was up 20% on the session. That was after a significant sell off in the previous session. In Japan or Asian markets, we see that the market was down 4%, closing at 3-year lows. It is down 14% for the month and you could see there it still has broken support, but you would expect a pretty good recovery today. The big rise was the banks, Mitsubishi the biggest bank down 5% and Mitsuho down 4% on the session.

    Elsewhere in Asia, we saw Hong Kong process close 0.8% higher and the Chinese market is still closed for holidays. In commodities, we saw oil bounced above the 100 dollar mark. It is a key level there. It is ahead of inventories which are due to be released in the US tonight and it obviously went through big range there. The price increase was not sustained with gold though as USD straightened on the back of a shortage of US dollars currently with Banks in US not lending between each other and there is a global shortage of US dollars.

    We saw RBA come front into our market to the tune of 25 billion dollars yesterday. The gold price finished at 880 and other commodities were generally down as well. We saw silver down 5.7%, copper down 1%, lead flat for the session, zinc down 0.7%, aluminum down 0.6%, and nickel down 3.5% on the session. ASX is said to recover after a 4% slide yesterday.

    The SPI is up around about 127 points and you would expect the market here to bounce only today. Looked at the big cats though for a lead and be cautious as the hedge funds still have their quarterly reductions to unwind in the next few days. The RBA pumped 25 billion dollars into the market yesterday, they do have pressure now to cut the rates up to 0.5% in the next meeting and it is looking likely to be definitely 0.25%. Interest of late, it is going up radar because it splits recently, it is trading at a 40% discount to industrials currently and it is currently priced at 400 US dollars, while the current spot price is closer to 1000 dollars. Energy and financials are likely to offer support today and we are likely to open up subtle solidly.

    Should you have any questions about the information provided within this presentation, please call the equities options desk or the CFD advisory desk on the numbers provided and as always trade carefully.

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    Friday 26th September 2008 Cube Morning Wrap

    Friday, September 26th, 2008

    Presented by Michael Hevern
    Cubefinancial

    Click here to watch the presentation.

    or

    Click here to download the mp3 audio recording (975Kb).

    Transcription below:

    ****************************************************************************

    Good Morning and Welcome to Cube Wrap for Friday, the 26th of September, I’m Michael Hevern for Cube Financial.

    The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile. Again, it is general advice only.

    We saw the Dow up on the expectation of a resolution of the rescue plan with congress sooner rather than later this picked up throughout most of the day, but that was attempted after there were reports that the resolution is not eminent.

    The key stories of the day were that GE cut its earnings in news going forward and so as it said it need to increased liquidity. Some information there on the bank some short selling with mortgage rates, mortgage rates have increased around about 0.5% last week due to the bailout proposal, the World Bank is also reported to have a tentative pack on the proposal . We saw GE up 4.4% on the day and the financials were up as well with JP Morgan up 7.3 and Bank of America up 3.9% on the day.

    In the NASDAQ, we saw the recovery there swing higher for those swing traders there a nice low-risk entry there with the stock being yesterday’s low and we are looking to run after that previous high last week.

    The NASDAQ was up 1.4%. We saw the S&P up 2% and the Dow up 1.8% on the session though were the stocks in the NASDAQ, Apple up 2.5%, and Microsoft up 3.4%, and Cisco up 3%, so good value really there in the NASDAQ. The ADRs, are a concern to Australia and include ANZ and NAB which were both up around 3.5%. BHP and Rio were both up as well around about 1% on the session.

    The gold stocks fell down, we see gold stocks index down 2.4% and the oil index was up 2.5% on the back of the higher oil price. We saw Chevron and Exxon up 2.6% and 3.4% respectively and ResMed and James Hardier were both up around about 0.5% on the session.

    In the UK, we saw that market up again at a swing higher there. It was play catching there, breaks to the top side of the overnight high, would see a positive pushup towards that 0.382 resistance level there and again it is still above that critical 5000 level. Banks recovered with Royal Bank of Scotland, HBOS, and Lloyd, and Barclays up between 2% and 7% on the session, so a good night there for the financials and the insurers bounced back as well after the ASXs chief executive, Henry Casjuries told the European media that these current crisis is offering opportunity for their company . This companies are insurance companies, Aviva, Prudential, and all mutual all up between 8.5% and 12.5% on the session, so [you may see a bounce in these insurers in our market today as well.

    Elsewhere in Europe we saw the DAX and the CAC were both up 1.9% and 2.7% respectively.

    In Asia, we see that the Nikkei was slightly down, but it did close above the open and again it formed a strong pattern there with a run up to that 0.5 resistance level there, so something around in the order around about 12600 to be looking for a target there. It does break out to the high side there.

    Elsewhere in Asia, we saw the Hong Kong was down 0.2%, so flat for the session.

    The Chinese stocks were up 3.6%. In the commodities, we saw oil holding its own there. The November contract was 108. Smart price until up there, it is up around the $111, so, that should bid well for our oilers today.

    The bailout is seen as a positive for world demand going forward, so that is why the prices holding there. With the gold price, we see that forming a bit of a consolidation passing over that did pull back. It was closed down $7 that was on the back of the fact that it has seen resolution of the bailout package, would see a spurt in the equities market in short term at least.

    On the ASX, we are sent to consolidate again. I think we had the SPI up 63, so got a few positive leads there with the energy stocks and banks. So, we did see some green today, but remember it is Friday. We see in the news, Felex is in the news, they are ready to proceed with the Woolambark Mine and they still got BHP and RIO in the data room pointing over due diligence to see what prospects for take over there; however rumor has it that BHP and Rio really only there just to progress their assets. Energy to offer support today.

    Gold stocks may weigh today that had pretty good run in the last 10 days and we see New Farm reported yesterday, excellent report there, earning BPS up 30%, revenue up 40%, and net profit up 35%, but that was just above the consensus but obviously they are at positive going forward as well.

    MRA was a big story yesterday apart from the other stocks such as Babcock & Brown and ALCOA, but people were saying it is too cheap at the moment. It is up around about 38% yesterday and just be careful there because Babcock does have over 50% of the stocks, so they have a pretty big influence on stock there. Expect the ASX to consolidate and remember it is Friday.

    Should you have any questions about the information provided within this presentation, please call the equities and options desk or the CFD advising desk, and as always trade carefully.

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