November 22nd, 2013 · Chris Vermeulen · 4 Comments
A couple weeks ago I posted these same charts talking about the pending breakout (in either direction) with silver, gold and mining stocks. Fast forwarding to this week its clear this sector continues its struggle to rally. Key support levels are now being tested and if these levels fail prepare for a sharp correction with mining stocks showing the most downside potential of roughly 25% for the GDX ETF trading fund.
November 12th, 2013 · Greg Atkinson · No Comments
A lot has happened since the last review of the Shareswatch Random Stocks Portfolio in January with the S&P/ASX having risen from just under 4800 to around 5400. That’s a gain of about 12% so it would not be unreasonable to expect the portfolio to have also posted a good gain over the same period.
October 25th, 2013 · Greg Atkinson · 9 Comments
Today the ASX All Ordinaries Index is up near the 5400 level with few signs that the current rally which started in July is about to fade. For market bulls this is a joyous occasion and for long term investors such as myself, it is a welcome change from years of the market edging sideways. However I will not be breaking out the champagne just yet as there are risks out there which seem to be getting over-looked.
October 18th, 2013 · Chris Vermeulen · No Comments
Last week on October 8th the financial market experienced a broad based sell off. Every sector was down with utilities being the only exception. The individual leadership stocks, which are typically small to mid-cap companies (IWM – Russell 2K) that have a strong history and outlook of earnings growth, were hit hard as well.
October 4th, 2013 · Greg Atkinson · 3 Comments
It might surprise some readers to know that over the last 6 months the Australian stock market has essentially moved sideways again. It’s true that over the last quarter the market has posted a healthy gain and this sort of action gets analysts & reporters very excited. But the boring longer term reality is that the All Ords was hovering around 5,200 in May and that is where it is now.
September 25th, 2013 · Greg Atkinson · 13 Comments
There is a lot of confusing news & information swirling around regarding the markets these days. Depending on who you listen to either the U.S. economy is recovering or Ben Bernanke is the ultimate asset bubble creator. In China some see the economy in a state of planned transition whereas others (including myself), see it as a command economy fuelled by unsustainable credit growth. Meanwhile in Australia there appears to be some confusion regarding if the mining boom is over or just having a rest?
September 8th, 2013 · Greg Atkinson · 3 Comments
Well it’s over at last – the end of what has essentially been a three year election campaign in Australia and hopefully also the end of political instability; but that may be asking for too much. Tony Abbott will be the next Prime Minister of Australia, Kevin Rudd will now get on with doing what he does best what he does best – sulk in a corner and the Australian stock market will probably not do a lot.
August 29th, 2013 · Chris Vermeulen · 9 Comments
It has been a bumpy ride for precious metal investors over the past couple of years and it unfortunately I do not think its over just yet. The good news is that the bottom has likely been put in for gold, silver and gold miners BUT the recent rally in these metals and miner looks to be coming to an end. While we could see another pop in price over the next week or so the price, volume and momentum seem to be stalling out.
August 23rd, 2013 · Gregory Clark · 3 Comments
Australians used to call themselves “the lucky country,” after the title of a 1960s’ best-seller saying how farming wealth had allowed Australia to create a stable, prosperous and fairly egalitarian society. But today’s minerals wealth seems to have worked in reverse, to create a nation prone to quick fixes, whimsical political changes, flip-flop foreign policies and crazy economic strategies. From the sober lucky country we move to the feckless happy-go-lucky country.
August 13th, 2013 · Greg Atkinson · 22 Comments
There has been a lot of noise about the Australian economy of late due to the federal election campaign, and most likely much of what is talked about by politicians is not worth paying much attention to. For investors the bigger and more important issues are related to if the Australian economy is in long term decline or is the economy simply heading through a short term rough patch.
July 26th, 2013 · Greg Atkinson · 6 Comments
As the Australian stock market continues to essentially drift sideways perhaps now is a good time to step away from looking at individual stocks and look at which sectors have been moving the wider S&P/ASX 200 (XJO) Index. To do this I am going to focus on six S&P/ASX 200 sector indices namely the S&P/ASX 200 Consumer Staples (XSJ), S&P/ASX 200 Financials (XFJ), S&P/ASX 200 A-REIT (XPJ), S&P/ASX 200 Consumer Discretionary (XDJ), S&P/ASX 200 Materials (XMJ) and S&P/ASX 200 Industrials (XNJ).
July 16th, 2013 · Chris Vermeulen · 33 Comments
During the recent weeks we have seen commodities especially precious metals continue to drop in value. Market participant sentiment has become more bearish on commodities and couple that with a rising dollar it’s no wonder why we continue to see commodities as a whole fall in value.
July 3rd, 2013 · Greg Atkinson · 18 Comments
As per the script, finance journalists were engaged in a fierce battle for readers yesterday with most getting very excited about the ASX All Ordinaries and S&P/ASX 200 posting gains of over 2.5%. It was the best day for the market since whenever they exclaimed and the bearish articles they had churned out just a week before were all forgotten.
June 27th, 2013 · Chris Vermeulen · 28 Comments
The life cycle of most things not matter what it is (living, product, service, ideas etc…) go through four stages and the stock market is no different. Those who recently gave in and bought gold, silver, mining stocks, coins will be enter this stage of the market in complete denial. They still think this is a pullback and a recover should be just around the corner.
June 21st, 2013 · Greg Atkinson · 21 Comments
The markets have had a rough time of late and yesterday the combination of Ben Bernake talking about a slowdown in printing dollars and a weak PMI figure out of China resulted in all major stock markets falling with the Dow Jones slumping by more than -350 points overnight. Ouch!
June 18th, 2013 · J.W. Jones · 14 Comments
Risk assets and financial markets around the world have been supported by central bank action for several years. Performing financial alchemy on a scale larger than has been seen in the history of mankind, central banks have hijacked global financial markets. Mountains of liquidity, artificially low interest rates, and the creation of future asset bubbles has been their calling card for the past few years.
June 10th, 2013 · Greg Atkinson · 12 Comments
Over the last few years I have written on several occasions about how the Australian stock market has essentially moved sideways and how I expected both the All Ordinaries Index and ASX S&P/ASX 200 to both bounce around between 4800 – 5200. Even when the market bulls got excited recently as the 5200 level was briefly breached, I maintained my long held view that the market is trading in a recession like zone.
June 3rd, 2013 · Chris Vermeulen · 2 Comments
Precious metals and their related mining stocks continue to underperform the broad market. This year’s heavy volume breakdown below key support has many investors and trader’s spooked creating to a steady stream of selling pressure for gold and silver bullion and mining stocks. While the technical charts are telling me prices are trying to bottom we must be willing to wait for price to provide low risk entry points before getting involved. Precious metals are like any other investment in respect to trading and investing in them. There are times when you should be long, times to be in cash and times to be short (benefit from falling prices). Right now and for the last twelve months when looking at precious metals cash has been king.