Sorry - but I'm quite negative....

The rate cut will dominate discussion today, but more about the reaction by markets than the actual event itself. As widely tipped by most (bar me) the RBA - for some reason that I can't see - cut rates to 2% yesterday....but I doubt they would have anticipated the AUD rallying following the release. The initial reaction went to script...AUD down, market up but that changed quickly with the market finishing lower while the AUD pushed higher. When markets fail to go higher on what should be supportive news, start to get nervous..It seems to me, the May correction which has strong seasonal significance has now started. For those looking for further confirmation, wait to see the mkt break down below 5790 - however I think that confirmation will be given today. Be very cautious and have cash in portfolio's. We have somewhere between 20 & 40%. Read my reasons here; (VIEW LINK)