Markets Are Resilient

by Olivier on May 26, 2009

Last week I said that the markets were strong and that I didn’t expect them to crash and burn. Today’s action confirms my view. The best thing to do is to stay cautious and to keep exposure to longs. FEED – AgFeed Industries’ action today is a great lesson why one should try to hold on to one’s winners as long as possible. You only need a stock like that every once in a while. It will easily make up for many mistakes and losing trades.

Don’t sell a stock that is moving up if it doesn’t give you a reason.

Then again hindsight is always 20/20. Every day the markets offer plenty of new opportunities. In order to be open for those new opportunities you need to learn to turn the page and move on. Making mistakes is part of the business.

  • Talking about opportunities – a new China play worth watching is ADY – American Dairy. I will add it to my public list.
  • MRGE – Merge Healthcare is acting well. This one looks extremely promising.
  • PCX – Patriot Coal is still displaying a bullish pattern.
  • AEN.TO – Antrim Energy did act weaker than I would have expected. The stock still looks like it wants to go to at least 1$. If oil stays strong and keeps moving up there is no reason to sell.

The REEs – Rare Earth Element stocks are starting to generate quite some interest. I will soon add a new sector overview chart to keep track of them. Here’s just a few names to start doing some research if you are not familiar with that sector:

  • CCE.V – Commerce Resources (Tantalum and Niobium)
  • RES.V – Rare Element Resources
  • AVL.TO – Avalon Rare Metals
  • TNR.V – TNR Gold
  • WLC.V – Western Lithium

Administrative note:

I’ve added another option to subscribe to website updates. You can now get website updates by email. Within the next few weeks the template I use will be updated. The website should load faster after the completion. I’m constantly trying to improve the website. Recent changes are the ‘related posts’ feature which makes it easier to find related content and the addition of a time zone map improving the ‘Contact’ section.

Have a great evening!

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