Observations and stratergies 1

[barry_1]

I notice that the SHORT trade traders seem to be having a harder time now than usual.They do'nt seem to understand that there has been a dramatic shift especially in RESOURCES,investors are turning away from the financial instruments towards resources which savvy investors realise must recover sometime....Yes the regression lines are still down,but note on the smaller stocks especially in the first part of the recovery the share prices are moving away from the regression lines on the SBK charts.When the regression lines becme horizantal and turn up then different stratergies will be needed....Patience is needed,although there has been some dramatic recoveries so far....I don't know if its only SSF and warrant junkies looking for the next fix ,or if many newbies out there have been brainwashed into thinking this is the only way to make a fast buck,but smallcap selected shares could help increase their bank balances faster and safer than derivitives at this stage!

[barry_1]

2....I of course keep seveal watchlists for each kind of resource product for example such as platinum....Each list must have the tracker section incorporated in it. The oldest list os always anout one year old,then i add lists about every two months eliminating these inter lists older than four months as too many figures can confuse.This helps make one aware of changes and shares taking off....I HAVE MY PREDJUCISES SAME AS EVERYBODY ELSE,BUT I NEVER LET THEM stand in the way of my system,WHICH IS TO TAKE and hold THE TWO HIGHEST shares in a sector.New lists make me aware of shares about to run.

[barry_1]

3.The leading smaller caps coal shares are CZA plus 105%,SNU plus 81%....On my new plat list from 24/5 ,JBL up 22%,AQP up 10%....On the gold list from beginning March GDO+42% ,SIM +31% ....On various lists SHARES THAT SEEM TO BE STARTING A RUN now are;EPS,PAN and MTX (REALLY ONLY MY OPINION!)PS i do not hold them all,but try change when i can.

[doomsdayza]

barry anything looking overbought on your watchlists? you're not long only are you?

[#5]

Fantastic post thanks. You have confirmed a few of my observations as well. It does look like the small caps& Resources stocks is where the money is. Im also going to do the same and set up watch lists with sectors, it will help indicate which are the top performers in each sector which is sometimes difficult to track.

[Wizard]

Fully agree Barry

[barry_1]

In small caps i don't trade derivitives and buy the actual shares only.I imagine that shorts must be running for cover this mornng!

[striker]

Barry - what's your view on PAM ? Copper price has recovered to some extent,and this share on low P/E.Do you think this one could also run hard ?

[#9]

Hi Barry, do fundamentals play an important part in your strategy, or do you react to price only?

[barry_1]

Hi,i have not followed PAM,so don't know if there is any reason it should not be bought.How ever looking at its PE/EY/DY looks if it is a good buy,i might even say better than Metorex at this stage OMO.

[barry_1]

Hi,If u read at the top of the page u will see that i said that positive conditions come in three phases.I am here really only referring to SMALL CAPS RESOURCES....In the case of say GRINROD i use only fudementals....i will in time describe all the phases of a recovery of a share i.e in my opinion,suffice to say that the first phase is when the the PRICE OF THE COMMODITY makes a recovery from very pesimistic levels....How ever during this phase all resource shares are likely to recover ,the good prospects along with the no prospects as well.

[#12]

OK, so your principle, if I understand correctly, is that the strongest shares are the ones most likely to continue, and that hte weaklings will get filtered out in stage 2?

[barry_1]

yes