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manere_fortis
Frequent Contributor
A conundrum - enter new resource short positions, or wait for short covering opportunities? Depends chiefly on your view on the dollar, I suppose, and what happens in China (will govt be able to prop up mkts?) For the moment I'm going with the trend, yesterday added to SOL short and initiated AGL short. Tempted to short gold miners too, but will my stops be straddled with gap reversal like we have seen in the last while? Nah, rather try make money elsewhere.
2 REPLIES 2
Vypir
Contributor
Hmmm, Sasol is misbehaving a bit. I have a very small long position (@ R404) on it and was hesitant to grow it as the oil price races back down, yet Sasol kept climbing (???). I reduced a bit at 437 yesterday, but it's still holding above 430. I thought it was the exchange rate propping it up, but not by that much! Platinum dropped below 980 again and Lonmin took a dive below R10. I am opening a small long here (like playing roulette me thinks). They are reducing their production by 12% (closing shafts) but they are also reducing labour etc. A 70% drop in price is probably an overreaction so I reckon getting some 9,8 or 7 rand Lonmin shares will hopefully be a good bargain but not part of the clearance sale.
manere_fortis
Frequent Contributor
Ja, SOL has upward momentum. Lets see if it goes past prev high of 440 odd. Oil glut remains in place. Vypir, your LON long may just work for you - the reversal will be abrupt when it happens. Market (incl resources) better into close of week. However I am going to continue shorting the resource rallies. Happy weekend all.