Markets Might Want To Take A Breather Here

by Olivier on April 12, 2010

The key word here is ‘might’. I am not in the business of calling tops or bottoms. Right now I would be cautious going long aggressively. Most stocks still do look very bullish though. As I’ve stated numerous times making predictions is an endeavor in futility. The market has literally killed all the bears that have been fighting the tape for months. It always comes down to this: Making predictions is useful in order to devise trading plans and in order to narrow down the sectors one wants to trade. In the end though you need to be open-minded and able to follow the tape and respect price action.The market doesn’t care what your convictions are.

Portfolio Positions:

  • KIV.V – Kivalliq Energy: Some buying interest came in near the close. Price immediately started moving up. As I state on my public list chart a close above 0.52 will probably be the sign KIV.V wants to go higher.
  • ANO – Anooraq Resources: This stock still wants to go higher. Excellent technical action going into the close. I added a little bit to my position. A 2.00$ price target looks very reasonable.
  • PKL.TO – PC Gold: Stock is holding up pretty well. The private placement will close soon. Then I expect more positive drill results. Every time the stock moves down volume dries up. That’s a bullish sign.

Some stocks I am watching that are not on my public list:

  • LNG – Cheniere Energy: Good upmove on surging volume. The thrusting move is running into resistance though. I am not sure yet if I will add this one to the public list. Watching it closely in the background though.
  • USEG – US Energy: Great thrusting move. Stock has a long history of going nowhere though. Another possible public list candidate.
  • MOA.V – Mountain Lake Resources: Aggressive stuff. Just watching in order to see how the market is willing to handle stocks that gapped up. Overhead resistance might be an issue with that one.
  • FDN.V – Foundation Resources: Aggressive stock as well. Microcap undergoing a deep pullback after its recent advance. Not willing to be aggressive yet. Just watching.

Stocks on my public list:

  • TRR.V – Trelawney Mining and Exploration: I believe this is an interesting one that might offer some decent trading opportunities this year. Stock looks like it needs a bit more time to set up though.
  • CYD – China Yuchai: My focus originally was on CAAS – China Automotive Systems. If you take a look at the China Automotive Sector Overview Chart it is pretty obvious that CYD is the better choice. It has less overhead resistance. I think new highs with CYD probably will be worth buying. I would like to see the market build some kind of consolidation pattern before CYD moves up though.

Market analysis and trading is not a business of bold predictions, but one of exploring market probabilities based on market knowledge, price history, human behavior and trading experience. – Jim Wyckoff

My public list with all my charts can be viewed here:

Have a great evening!

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