Aussie market started negative on global sentiment and then ran into global investor selling after employment data directly from the “Never Never Land”. ABS announced that Australia created over 70,000 new jobs while consensus expectations were for a loss of 10,000 jobs. The market is going to remain volatile till the US Fed move is out of the way….that’s next Thursday 17th morning Sydney time. The treasurer has now announced that the budget update will be on Tuesday. Given that there really hasn’t been any reform or agreement with states, the fantasy budget from May will have to get even more “Peter Pan” to make sense. Revenue sliding, expenditure rising and surplus now in the “Never Never Land”. Market recovery in the next quarter will be driven by four main trends….yield, currency, cost cutting and M&A. Despite recent profit taking, it still looks like we will continue to Christmas rally similar to last year…we expect the third leg in the rally to start soon after US Fed move!!! (VIEW LINK)