Market Uncertain, But Almost Fully Invested

All the pundits and business TV channels are talking doom and gloom right now and are predicting corrections in the US stock market of 10 - 15%, and they are also predicting that gold will fall further.  Well, listening to this 'news' isn't part of my investing strategy, thankfully, and I simply need to follow the moving averages and watch the graphs.


As of yesterday, I am a bit over 78% invested right now, with the rest in cash (but with a few more securities showing a BUY signal.  I am holding quite a few precious metal securities right now - HGU, SLW, AUQ, and YRI and I just sold OSK today.  I had bought OSK on Dec 30 at 4.71 during tax loss selling (when it showed a buy signal) and sold it today at 6.23 after Goldcorp made an unsolicited bid for OSK.  The final price paid for the OSK shares will likely be higher but since it is tied to G's share price (and I already have enough other gold stocks), I decided to sell my OSK and move on.


I also have some base metal securities - PDN, FM, LIM, and SAS and oil & gas stocks like CR and LTS.  Rounding out my securities holdings are SLF, EMA, LW, and MBT.


I am more heavily weighted in base metals and precious metals overall than I would like to be at any one time but the bottom line is that I follow the buy signals and right now there are a lot of them in these areas.  The US markets and Canadian financials have been going down lately, and I have not been in those markets since I sold my shares to lock in gains (sold HFU, HSU, and HQU).


There are a few securities that I am looking to pick up tomorrow (new BUY signals), including MEG, S, and ZJG (junior gold ETF, that I may not buy since I already have a few gold stocks).  G is also a new buy, but having just sold my OSK (that will likely turn into G shares when the takeover is approved), I may avoid G. 


A few of my current holdings are also close to a SELL signal, including LIM and LTS but I won't let go of them until their share price goes below the 50-day average, as is my guideline.


If stocks DO correct, then even if the price of gold bullion goes up, the price of gold shares may follow the market down, but I will just keep an eye on the charts and make that decision when the time comes.


Lastly, another of my holdings - DWI - has done pretty well the last month or so and they came out with earnings today after the close.  They lost money in the quarter but less than expected, and they also announced a new contract with a large US wireless carrier (although they didn't give the contract value), so I think it may go up a bit tomorrow (it isn't close to the moving average line, so no real danger right now).  This stock has suffered lately but looks to have bottomed about a month ago and this new contract should really help them out.


Until next time...