A Good Week to Own Resource Stocks...

This past week was a lot better than last week - this week my portfolio was up 5%, whereas last week it was down 2.3% (mostly due to bad habits that I mentioned in my last post).  This week, I stuck to the plan and followed the moving averages and gold and silver had a great week so that helps as well.


I still own a lot of precious metals securities - HBU (gold bullion ETF), HZU (silver ETF), BTO (junior gold producer), MTO (junior gold producer), and YRI (mid-tier gold producer).  I also have other mining stocks such as CCO (uranium), PDN (uranium), TCM (mostly moly), and TKO (copper).




I have a couple of energy related stocks - LTS and PD, a technology stock (DWI), and a utility (EMA) to round out my portfolio.  As of today, I am 82% invested overall (with the rest in cash, waiting to deploy).




The markets are a little uncertain right now, as the minor correction was shorter (about 6%) than most had expected, so I am not sure if being more heavily invested right now is a good idea.  That said, I follow the graphs and do what they tell me, and don't pay too much attention to macro-economic news.




For this Tues, new buy signals are from HFU (financials ETF), GLN (telecom), SU (energy), TBE (energy), and WIN (technology).  I am most likely to purchase TBE and WIN on Monday (I also think both are takeover targets, especially WIN).  I am also looking at HNU (natural gas ETF), as it looks like it has room to move upwards and it isn't far from the 50-day moving average line.


Year-to-date, my portfolio return is now 8.71%, compared to the TSX YTD return of 3.2%, so I am still well ahead of the benchmark that I am comparing against.  Had I not fallen back into bad habits (as I described in my last post), I would be well over 10% YTD right now, so I have to try to resist that temptation and stick with my strategy that is working (at least for now).  I still expect a 10%+ correction in the next 3 to 5 months, but even if this DOES happen, gold bullion, silver, and even gold stocks should perform pretty well (or at least not as bad as the overall market).


In any case, I will continue to follow the moving averages and do what they say.