Market Comments 2/3/2011

OK, listen up folks.

Did you watch any news about the market today? I bet you did. I bet you all know that the market was down today. Right? Right. How much was it down? I bet you've got some idea. Right? Right.

How much was it down? I bet you all know it was down about half a per cent. Right? Well, close enough. It (the XAO) was down 0.45%.

Not that dramatic. Right? Right.

Now

How many of you can tell me what the volume was like today? Go on? Not many?

How many would guess:

a. today's volume was very much below average

b. today's volume was below average

c. today's volume was average

d. today's volume was above average

e. today's volume was very much above average

If you answered (e) you go to the top of the class. The volume today was 70.9% above the 10-Day Average.

How many saw that figure presented in the media round-up today on television or on the radio?

I don't cover that stuff - but I'll bet it was none.

So - is that significant? Obviously, from the way this ranter is going on, I think it is.

In fact, it's the highest volume since late November 2010.

I mentioned that last night - late November 2010. And here it is again.

So - what do I think?

I think we're very close to a short term bottom and probably a continuation of this up-trend that has lasted since December 2010.

The market is oversold. Huge volume is coming into the market - holding it up from a catastrophic decline.

The odds favour a strong rebound in the near future.

(Just the opinion of a humble, elderly guy sitting in a suburban house in Brisbane. Take it for what its worth.)

Good luck

Red