Mining Sector Ideas

[gfp927z]

Bigworld, The market buoyancy continues, and it looks like the S+P 500 might continue to run up to the July high (4600) before we get a significant pullback / consolidation. Just a guess, but I decided to move back up to 10% with the stock allocation. I'd like to keep it there as a core LT position, but once we reach 4600 the chart will be undeniably overbought, so will probably be time to take profits again. But 10% seems like a reasonable stock allocation for a nervous nellie like me, lol. I had it down to 5% with the idea of returning to 10% after a pullback, but looks like we may not be getting that pullback just yet.

Based on the chart and overall vibe, it looks like 4600 is clearly in the crosshairs. I figure a lot of pent up money has been on the sidelines waiting for the 'green light' to re-enter stocks. The green light has flashed (maybe), and in addition there appears to be a considerable amount of Fed juicing, as we've been discussing recently. Anyway, the current chart says that some additional upside is likely in this move. Geopolitical factors should have nixed this entire move, but the Fed, media, and 'powers that be' are colluding to keep things buoyant. So for now, 'don't fight the tape / Fed' seems to make sense.




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