GML - Where to from Here? - 28th July 2008
THE FOG LIFTS & OPPORTUNITIES EMERGE
On the 16th July I acknowledged that I was enshrouded in a mist which over the following two weeks developed into a extremely volatile thick fog.
In view of this dilemma the portfolio has been sharply reduced following our 'Great Defence' strategy finishing up with 70% in cuddly cash. As is always the case as soon as positions go against us we banish 'hope' in favour of security. We are now in a position to move forward subject to favourable opportunities emerging.
This week's analysis is much improved from recent morbid affairs with the fog lifting slightly exposing some interesting propositions.
WORLD STOCK MARKETS
On the bullish side there is nothing of interest anywhere although France surprisingly is on support being on a G2 level. There is a falling angle a little way away limiting a possible rise to 16.66% from the lows…therefore not of great interest. There are a number of markets which have rallied far too quickly which might provide 'shorting' opportunities
Analysis of the sectors have highlighted the following:-
1 - In the US the CRE (commodity shares); Computer & Hi Tech stocks; Defence; Energy & Natural Gas sectors are bullishly highlighted whilst on the downside Banks; Drugs & Housing stood out.
2 - In the UK Chemicals & Mining look bullish whilst Banks; Gas & water; General Financials, Non Life Insurance, Pharmaceuticals & Software looked bearish.
3 - Europe analysis highlighted Chemicals; Food & Beverages, Oil & Gas & Retails as positive and exposed weakness in Autos; Media, Retail, Technology and Travel & leisure.
This meant a great deal of work was necessary to cover the myriad of likely opportunities. Analysis over the weekend concentrated on Energy and Natural Resources. Energy analysis exposed no fewer than 25 extra possible buy signals and Natural Resources 13 extra buy signals. It is only necessary now to get these signals triggered by the market and our next period of progress should be underway.
THE GOLD MARKET
Both the World Market report and the Sector analysis brought the Gold Market into focus. Good Bullion is on support as are the UK, US and Canadian Gold Mines Markets. There are 23 mines lined up with 8 new signals following this weekends analysis
Our attention has been drawn to Gold, Energy & Natural Resources with Gold being the most imminent. There are also a number of stocks lining up in the weaker sectors to short which could balance out the bullish scenario for those following a Long/Short strategy.