Overnight, the US market continued with its volatile trading; the Dow Jones ending the session with a 400+ point rally to lift it out of negative territory and post a solid 3.98% gain. Apparently the turnaround was sparked by economic comments from the Fed. Our market followed on from the momentum of yesterday afternoon and quickly gained more ground in the early morning, only to range trade thereafter. The XJO posted a 2.6% gain to close 106.5 points higher with the strongest gains coming from the Energy, Health, Materials and the Metals/Mining sectors. Small caps lagged the large caps as the Small Ordinaries only manged a 2% rise. Volatility remains high and therefore low risk entries very hard to find. The market needs time to settle so we will remain on the sidelines as far as discretionary trades are concerned until volatility reduces and low risk entries can be found. In order for the systematic portfolios to switch back on, the market has a lot more work to do. Patience required.

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