A Happy New Year to all my readers! I will probably take another week off and then start updating the website again. Going forward I will spend more time with non-blogging activities. Although I haven’t made a final decision yet, my plan is to change my approach to running my website. I will move towards providing more audio and video content as writing posts takes a lot more time. In terms of frequency I intend to go for a weekend market overview video post and a mid-week audio review either going through special situations or commenting on the technical development of various markets, sectors, individual stocks and commodities. I will keep updating my public list on a regular basis. Actually checking my public list is the best way to monitor what I am looking at, how I change my mind and how I adapt as the technical situation evolves and new chart patterns emerge.
Obviously no predictions for 2012 as it is a fool’s game. Looking at the charts, I think it is worth monitoring the following sectors very closely as we could see surprises to the upside.
- Agricultural commodities. RJA and DBA are ETFs that come to mind. – Agriculture Sector Overview Chart
- Silver – Silver Sector Overview Chart
- Biotech – Biotech Sector Overview Chart
- Some wild-cards: Uranium – Uranium Sector Overview chart + Platinum – Platinum Sector Overview Chart
Another thing I am going to closely monitor is when GDX and GDXJ i.e. the gold mining stocks start to seriously outperform their underlying. In plain English: If the gold bull market isn’t over, and for now I don’t think it is, the mining stocks at some point in time will outperform bullion again. Think of it as a natural money rotation process. Early birds have lots of profits in bullion and might take some profits in order to allocate more funds to mining shares. Something well worth monitoring very closely going forward.
The big theme for years to come though is continued global deleveraging. Debt levels are staggering and unsustainable. There will be consequences. Keep that in mind as we continue our journey navigating the financial markets.
Leaders make tough decisions.
Charts: http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2791469
Buenas noches!