Correctional crashing correction

[Wumpus]

Do you think this is just going to be a 2-3 day blib or do you guys think this is the long awaited correction that will last a bit longer? I am thankful that I got out of the market around 2 weeks ago. Perhaps a bit premature, but I couldn't stand the heat and I left the kitchen :) The ALSH was screaming B-E-A-R at the top of its lungs since then. The upwards forming wedge, the indicators being overbought (RSI and MACD specifically) and the weekly chart with 200wma remains a scary sight (just try it). Even the fundamentals were not that rosy (PE's and DIV ratios being on the wong side, not to mention the world politics). My reasons may not be that accurate, but these are the reasons why I took a breather and I am happy I did. I always find it fascinating when the fundamentals and the charts are in agreement. The charts say 'bear' and some idiots in the north is playing with uranium. The opposite is of course often true as well. 'Bullish' charts and then some reason out there that seems to confirm. I am interested on what the other forumites think about the dip we're having.

[SimonPB]

Wumpus, hmmmm. I am not convinced that the fundamentals are not rosey never mind bearish. One example, MUR. They announced a doubling of earnings for the last financial year. Now MUR is not some small penny stock, this is a huge company doubling off a massive base. That is surely not bearish and MUR is not the only one, look at the AMS earnings etc. Another example, Top40 PE around 17-18 and div yield 2%. Neither says expensive, sure not cheap but remember SP500 hit a PE of 30 in 2000 on low growth prospects - that was expensive.

[mib]

Simon - where do you find PEs for the indicies - local and overseas?

[SimonPB]

heya, go to key market stats - list of indices. We also give index details on the quotes page for each stock for indices they are in.

[Nick_1]

THEY ARE COMPLETELY UTTERLY C R A P. NO ***** EXCUSES!!!!!!!!!!!!! Ive hade to redo same trades on buy side 3 times! Then on sell side the same. Phoned DB who hedged me out! DB PICKS UP PHONE ON 3RD RING!!!! Then waited more than 10minutes for SBK to pick up to try and cancel my order thats been sitting on the system for 10 minutes AND TO REPLACE IT WITH THE HEDGED TX, ONLY TO FIND OUT THAT MY TRANSACTION HAS ALREADY GONE THROUGH. Had to phone DB back to apologize to them in that I DID NOT NEED THE HEDGE CAUSE THE TX ACTUALLY WENT THROUGH!!! (AGAIN PICKED UP IN 3 RINGS!!!!) SBK Operator immediately started explaining the FEED PROBLEM BLA BLA BLA! The FEED has nothing to do with the cash balance or my holdings WHICH IN FACT NOW SHOWS 2 SALES AND IM STILL HOLDING THE WARRANT AS WELL. 456'sakes!!!!!!!!!!!! IM CLOSING MY ACCOUNT (already decided yesterday but this is the clincher). SIMON, good luck mate, u may have bitten off too much with this on cause u gonna eat k@k the whole time for nuttin of ur own doing!!

[Nick_1]

THEY ARE COMPLETELY UTTERLY C R A P. NO ***** EXCUSES!!!!!!!!!!!!! Ive hade to redo same trades on buy side 3 times! Then on sell side the same. Phoned DB who hedged me out! DB PICKS UP PHONE ON 3RD RING!!!! Then waited more than 10minutes for SBK to pick up to try and cancel my order thats been sitting on the system for 10 minutes AND TO REPLACE IT WITH THE HEDGED TX, ONLY TO FIND OUT THAT MY TRANSACTION HAS ALREADY GONE THROUGH. Had to phone DB back to apologize to them in that I DID NOT NEED THE HEDGE CAUSE THE TX ACTUALLY WENT THROUGH!!! (AGAIN PICKED UP IN 3 RINGS!!!!) SBK Operator immediately started explaining the FEED PROBLEM BLA BLA BLA! The FEED has nothing to do with the cash balance or my holdings WHICH IN FACT NOW SHOWS 2 SALES AND IM STILL HOLDING THE WARRANT AS WELL. 456'sakes!!!!!!!!!!!! IM CLOSING MY ACCOUNT (already decided yesterday but this is the clincher). SIMON, good luck mate, u may have bitten off too much with this on cause u gonna eat k@k the whole time for nuttin of ur own doing!!

[john_1]

The question I want to know is,does the devil realy wear prada?

[CAB]

So....uhh Nick - you're not happy?

[Wumpus]

Simon, thank you for the response. Yes I agree the results of companies are excellent. Metorex for example has had EPS increase of 141% in the last year. I am talking about the PE ratio that is slowly climbing and the DIV yield that is slowly decreasing on the Top40. It't not cheap anymore, although not terribly expensive either. There are still a few excellent buys, but they are not as abundant as they use to be. Perhaps I was too harsh in saying that the fundamentals "are not rosy", it may be more accurate to say "it use to be rosier" :)

[SimonPB]

agreed, rule of thumb I always used was PE (for index) above 20 is expensive and below 10 cheap. So at 17/18 we're certainly a lot closer to expensive then cheap.

[#11]

Yes - she wore prada when she maxed my credit card...