4th Dec 7.30am NYT

Hello all

We have seen the gold market get shaken as anticipated.

For those who aren't sure the front month for gold is Feb not December!

While it was a nice bounce back up to 1707 I think another push down will be on the cards today.

In the index we saw the market test the 1403 level and then bounce, but is it a bounce or is it a sucker bounce.

With the astrology coming through negative I'm inclined to look for bottom today some where between 1400-1395.

In the Economy we saw the Reserve bank of Australia cut rates again.

Stupidity is a disease there is no cures just ask Fed chairman Ben.

If 1.75% interest rate cuts over the last 12 months have failed to simulate growth why would another .25% cut do so.

Its obvious as night and day that the governments new carbon tax has bitten way more than expected on household disposable income and as a result everything is slowing down.

Next year with the mining taxes royalties coming in below estimates and a continued slow down in the economy, a disaster is on the cards for Australia.

At present the only thing, which is saving a full assault on both bonds and the Market, is the Currency.

This is why I said look at the cross rate spreads.

Mid next year this will not be the case and a serious attack will be on.

Question will be if the US market is running up then the Australian market might just stand still or slide little, time will tell.

I do feel for the pensioners who depend on interest earner on there savings to survive.

The best advice is look at what the American did and prepare yourselves.

Please don't anticipate on government handouts, this government will bankrupt the country if they are not careful.

To the German readers!

Yes Germany is the darling of Europe but for how long.

Exports to China are slowing down and with the Euro at a 130-handle pressure from other exporting nations are taking its toll.

There are Elections next year and while I haven't done the astrology to pick the winner yet without Angela Germany could be in trouble.

I have no political interest but one thing is for sure Angela Merkel has a very powerful chart.

Everything she does is to Germany's interest and while this is very stubborn minded for the EU block, for her people she looks for their best intentions.

As always use the above as an indicator to your own work.        
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