COVER 1/2 PMC $18.45, -4%
SELL DYN $2.38, -8%
SELL PQ $6.83, +14%
SELL 1/2 SRI $7.97, +17%
SELL 1/2 CDE $21.58, +13%
The bulls definitely took back control today and I decided to take some profits on this strong day and rotate out of some weaker stocks that have been stagnant. Markets appear to be overbought and are coming out of overbought territory bouncing off the 50 day and lower trendline of the upper wedge.
The USD/CAD is in a two month downward channel and it may bounce back here in the short term. It has found support off this lower trendline three times before. If the dollar does bounce, I expect commodities and the markets to fall so I am optimistically cautious right now, even though it seems like the bulls are totally running over the bears. I've learnt that when there is this much enthusiasm and people on the same side of the trade, its time to start taking some profits. Remember, you can always buy back in later at a better price.
Its interesting the relationships right now between commodities, gold, US$, and the broader market. Appears that so much is dependant on the direction of the US$. On the weakness of the dollar, Gold has reached an all time high and all the gold bugs are out in full force. Forecasts are expecting gold to hit $1200-1300 by mid next year, if not sooner.
SELL DYN $2.38, -8%
SELL PQ $6.83, +14%
SELL 1/2 SRI $7.97, +17%
SELL 1/2 CDE $21.58, +13%
The bulls definitely took back control today and I decided to take some profits on this strong day and rotate out of some weaker stocks that have been stagnant. Markets appear to be overbought and are coming out of overbought territory bouncing off the 50 day and lower trendline of the upper wedge.
The USD/CAD is in a two month downward channel and it may bounce back here in the short term. It has found support off this lower trendline three times before. If the dollar does bounce, I expect commodities and the markets to fall so I am optimistically cautious right now, even though it seems like the bulls are totally running over the bears. I've learnt that when there is this much enthusiasm and people on the same side of the trade, its time to start taking some profits. Remember, you can always buy back in later at a better price.
Its interesting the relationships right now between commodities, gold, US$, and the broader market. Appears that so much is dependant on the direction of the US$. On the weakness of the dollar, Gold has reached an all time high and all the gold bugs are out in full force. Forecasts are expecting gold to hit $1200-1300 by mid next year, if not sooner.
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