The Top Line

Volatility returned to the market this last week, and with a bang ! The catalyst was a premature release of earnings results from Google on Thursday, the real story of course is the severely slowing top-line growth in line with a global economic slowdown. This, despite the huge QE undertaken by central banks demonstrating the ultimate futility of such efforts. Fortunately, the market rallied to just above 1460 on Wednesday and allowed us to initiate a small short position as reported on the Portfolio blog. Much of the indexes damage on Friday was done after the other world markets had closed and so we expect a degree of follow through first thing on Monday. Although not oversold on any particular time frame, we will take profits as soon as possible this coming week, with resistance seen at 1420 and 1413.