It's the summer doldrums, so there are few bulls around, technically we're oversold, we're due for at least the odd dead-cat bounce ... but I suspect this has got to wring itself out.

John Ing

Categorized in : Company News

There's no question that oil has yet to find a bottom, it's more of a trader's game than an investor's game.

The golds had bottomed this month, looking ahead into next year, when the oil bubble has burst, the iron ore bubble has burst, the Dow is at 18,000 and there is some talk that the stock market bubble will burst, and when that happens, of course, gold lifts.

Volatility is now the name of the game, there is a confluence of factors at work, both geopolitical, energy prices, interest rates, all this is leading to the expectations of increased volatility.

The much beleaguered energy group on the heels of the Talisman takeover is drawing attention to the undervalued nature of the oil patch and so you're seeing an uptick of this very sorry group.

You've got a bounce with the energy stocks after days of gloomy news, though it's probably more bargain hunting than anything else, our view is we're still heading for further weakness in energy prices.

No one knows how far oil prices could fall, we're getting the emotional reaction, we are getting the volume reaction, but we're nowhere near a bottom yet.

Energy shares are still vulnerable. I don't think they've shown signs of bottoming yet, this is going to drag on.