Australian Investment Blog

Are we heading for an early October low?Good morningOverviewAs has been mentioned previously, the ASX200 has been gaining strength even though, ironically, it is likely to open down 100 points this morning. Over the last 3 weeks the Dow has fallen 932 points (5.5%) from its intraday high yet the ASX200 over the same the period is down only 82 points (1.6%).The global equities’ markets are performing as Market Matters has been predicting with the likelihood of a very strong buying situation arising in the very near term. Buying into weakness at the right time is likely to provide strong, well risk-weighted returns.Today will be a test of the local market’s resilience! Glencore fell almost 30% last night as global resource stocks continue to be hammered with BHP’ US ADR’s indicating an open ~$21.80 (-5.8%).However, historically the stocks that create most of a market's weakness usually bounce the hardest and for the ASX200 that is the banks which rallied strongly yesterday; and don’t forget, 3 of them go ex-dividend in coming weeks.Turning to the Markets