Still long stocks and buying more

So far the market is rebounding as the European crisis temporarily (keyword) abates. I am still long stocks and have added a few more including HTWR, NPK, MCF, UPI, IDX, and RUU.V (stans energy Canadian company). I believe that this move in the markets will take us back to 1220 (or a little higher) by late July/early August. Then things will get nasty with an expected drop of 20% in the fall. However you have to make sure that you own the right stocks as not everything will rally. I do not think commodities as a asset class will do very well. If you look at the charts all major commodity stocks failed to make new highs in April (FCX, POT,etc) which shows that they have moved from leaders to laggards. So investors have to be very careful which stocks they choose this time around. Look for stocks with good technicals and strong upward momentum like HTWR, UPI, LOGM, VASC, and OPEN. You will notice that all of these stocks are hitting new 52 week highs despite the market correction of May. They must be doing something right!

Stay safe in this volatile market!

Black Swan Insights

FD: Currently long Africa Oil, RUU.V, MCF, HTWR, MO, LOGM, NPK, SPY, IDX, and short SPY puts (terribly dangerous but for some reason I did it anyway).


No comments:

Post a Comment