Many moons ago I learnt a really powerful yet simple equity methodology for determining the performance of the different sectors against the market. I do this because I want to know where the money is. Whose money you ask?
The Fund Managers and the Institutes money is key to really making decent money in the stock market. One could follow what the fund managers are doing after the fact and buy what they buy. I prefer to pick it up from the market itself. Generally speaking, the fund managers can't dump hundreds of millions on the market all in one day.
After learning this great skill, albeit simple, I am able to track down the Big Daddy money out there. Once I have done that I go over the sectors with a fine tooth comb to find the shares within those sectors that are the best performers somewhat hand-picked to be on the fund managers team. Those left behind after all the slots are taken get a seat on the bench and don't get to score.
The Gold Index signalled a recent buy in the week of the 16th-23rd of January 2009. Some of the gold mining shares have doubled in less than 2 months. Is it time to get in there now? Not likely. Chances are you have missed the boat. Better not to chase it now...
DRD Gold and Anglogold signalled on my Big Daddy Money system in December already. DRDGold triggered around the 2nd week of December at around 435c and is now over 800c. AngloGold has gone from around R200 to over R300 this week.
But I will be waiting to add to my investment positions as there could well be a pull back or retracement before the gold shares move onwards again. But I will be keeping an eye on it like a hawk.
DRD has been the best performer with Anglogold following closely behind. Some less traded shares like Afgold and GBG Gold also have had some really good moves.
Keep an eye out for our next post about the Yield X on the bonds. Do you own a homeloan? Well, as the debt cycle peaks and the interest rate committee begins to waver under the economic pressures of a debt-laden consumer you could bank money as the interest rate drops off.
Look out for that as we develop some more info on that topic.
Financial & Investment Workshops, ebooks & financial freedom @ http://www.newsweek.co.za/ Check out our NEW ALSI Apprentice!
Showing posts with label Goldfields. Show all posts
Showing posts with label Goldfields. Show all posts
Wednesday, February 18, 2009
Wednesday, January 28, 2009
Update on JSE All Share Index
Update on the JSE All Share
We have been trading a fantastic long on the market this week especially in Gold and gold shares. But the general market also referred to as the All Share Index, has had a significant week of upside.
How did we become aware of the move in the market over the last week? We use our technical analysis of local and some international stock markets. We get an overview of the local stock market using different fundamental and technical indicators. For instance, our position on GOLD from last week was to buy from around the $840 mark and to sell at $880 this week.
Buy understanding some chart patterns, in particular the ascending triangle pattern, we could plot an expected target of $140 possible upside to the Gold price once the gold price broke above $830 last week. This also triggered our positions in gold shares like GoldFields and AngloGold from Monday this week. We have since closed our positions yesterday as we saw on our short analysis that Gold could pull back slightly, likely due to profit taking. So we moved our money off the table as well.
ALSI End of Day Report: we are at the 21 day EMA and we have resistance at 19360 on our LIVE 15 min chart. There is also a double top pattern formation on the ALSI live at the moment which suggests some downside after the nice bull rally we have experienced.
The MACD is about to cross down as well on a LIVE chart with the Stochastic 13 also looking very overbought. All of these types of indicators suggest some sell off in the ALSI 40 index today and tomorrow.
Fundamentally speaking however, the CPI and PPI are being anounced in South Africa this week. CPI was very positive yesterday which will add comfort to the market going higher. Once the interest rate cut which is said to follow next week, this will inflate the local JSE market to the upside.
Keep an eye on Sasol as it may have a pull back to around 26500c over the next few days. Obviously keeping an eye on Brent Crude oil would be a good idea at this point. Well, we keep an eye on it at any point when it concerns our position on Sasol. The two are very much linked to each other.
For more info on learning to assess the market the way we do... go visit www.tradingmoneytree.com and www.newsweek.co.za We have also put together a free basic tutorial about money and investing.
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
We have been trading a fantastic long on the market this week especially in Gold and gold shares. But the general market also referred to as the All Share Index, has had a significant week of upside.
How did we become aware of the move in the market over the last week? We use our technical analysis of local and some international stock markets. We get an overview of the local stock market using different fundamental and technical indicators. For instance, our position on GOLD from last week was to buy from around the $840 mark and to sell at $880 this week.
Buy understanding some chart patterns, in particular the ascending triangle pattern, we could plot an expected target of $140 possible upside to the Gold price once the gold price broke above $830 last week. This also triggered our positions in gold shares like GoldFields and AngloGold from Monday this week. We have since closed our positions yesterday as we saw on our short analysis that Gold could pull back slightly, likely due to profit taking. So we moved our money off the table as well.
ALSI End of Day Report: we are at the 21 day EMA and we have resistance at 19360 on our LIVE 15 min chart. There is also a double top pattern formation on the ALSI live at the moment which suggests some downside after the nice bull rally we have experienced.
The MACD is about to cross down as well on a LIVE chart with the Stochastic 13 also looking very overbought. All of these types of indicators suggest some sell off in the ALSI 40 index today and tomorrow.
Fundamentally speaking however, the CPI and PPI are being anounced in South Africa this week. CPI was very positive yesterday which will add comfort to the market going higher. Once the interest rate cut which is said to follow next week, this will inflate the local JSE market to the upside.
Keep an eye on Sasol as it may have a pull back to around 26500c over the next few days. Obviously keeping an eye on Brent Crude oil would be a good idea at this point. Well, we keep an eye on it at any point when it concerns our position on Sasol. The two are very much linked to each other.
For more info on learning to assess the market the way we do... go visit www.tradingmoneytree.com and www.newsweek.co.za We have also put together a free basic tutorial about money and investing.
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
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