2008 - THE GREAT OPPORTUNITY IS UPON US!

From our last ‘WTFH’ 14-11-07

"The essential requirement in trading ranges is to exit as markets fall as one day ,usually when least expected, support is reached and then shattered followed by swift debilitating falls. Buyers are no where to be found and without buyers you cannot sell those plummeting shares. The only answer is cash as markets fall in trading ranges before reaching the lows of the range. Of course, in rising markets corrections precede the time to buy. Distinguishing between the two types of falls is often the demise of the investor."

So here we are at the end of January… support is being shattered, buyers are nowhere to be found and we only have one small share which is rising! We are heavily into cash. Now is the time to plan for the big opportunity.

It is not our practice to comment on the following year in January as most others do but wait to the end of January to assess the year ahead. The reason is that we like to see the movements in January to use the 80% accurate January Thermometer.

There is no need to wait for the 31st as it is abundantly clear with record falls so far in January to clearly state that 2008 has an 80% chance of being a Bear year. Should you take this seriously? If you are in doubt look at January moves of last year. They clearly show a flat year and that’s exactly what you got.

One of the great disappointments of modern man is the lust for immediate gratification and the lack of concentration to withdraw, study, plan and only then act. This is particularly relevant to the investment business.

Last year was a time for reflection especially when the January effect suggested a sideways move for western markets. January moves this year are ominous for 2008 with the US having experienced the biggest one day drop for the last 25 years.

The informed buyers are still selling.. The bear view we hold would be compromised if the informed buyers were to commence buying into a fall in the indices.

So what for 2008?

SHORTING THE MARKETS

There is a continuing build up of signs for a weak if not disastrous year for equities. This bodes well for those willing and able to short the markets and could see the Bulls suffer as in 2001 or probably even worse than 2001. Our past record sees us in the hierarchy of bear traders over the last 3 decades which should help our subscribers to prosper. If you are not geared to short just yet do not despair. Where the break of the range in 2001 occurred it fell by 13% the rallied and was followed by a 30% drop. We will be exercising patience and looking for those opportunities when all others will think the panic is over.

INFLATION OPPORTUNITIES

Inflation is worryingly creeping higher. We are currently covering this concern with our holdings of Inflation Linked stocks. There will be further useful opportunities arising should inflation take off.

INTERESTING SECTORS

Our recent Sector analysis is starting to highlight the Mining, Energy, Oil & Oil Services sectors with dozens of possible buy signals along the line but not yet.

GOLD & GOLD MINING STOCKS

Here again we expect a fall in the bullion price down to 840 and then a resurgence for bullion and the mining stocks.

BANKS IN DISARRAY

If Banks are not willing to lend to each other why is your money with them? We’ll show you the only sound risk free alternative to storing under the bed. If you haven’t been to one of our seminars recently you should get there quick before banks along with those political crooks, in the public good of course, pull the plug from under you.

COMMODITIES

We have been returning profits of 20% and above over the last few years. There would still seem to be further opportunities building up for 2008.

SUMMARY

Our current analysis is suggesting a difficult year with long term cycles falling into place in March. Knowledgeable investors could be in for a great year whilst the mass of investment guessers suffer. Visit our seminars and take the first step to becoming an unemotional trading machine…it will be the only way to float through the next few years as we did in 2000/2003.