Thursday, March 5, 2015

Pick of the week for Wk10 is to ready cash

My bet is that index will go down 5-8% from yesterday before going up and successfully breaching 8K. So my bet is there will be a chance to get in at cheaper valuations. What's my basis on this belief? Nothing solid. Only that the foreign buying is small and scattered. There's no consistent push even across index issues.  And then the volume is also distributed to bazurs rather than blue chips or solid second liners. The atmosphere is partially speculative than a consistent rise (on the backdrop of growing corporate earnings, as newspapers say, or otherwise)

If you have TEL, AC, GLO, other big index contributors in green, sell.

But if you bought PGOLD, like I did when it dipped to 38, hold muna. There might be fuel until 45-48.

Also, if youre still holding the likes of SECB,SCC, GTCAP, ABS, DNL and picks, which are now showing all-time highs after all-time-highs, congratulations. It's up to you how long term is really long term. If you think funds that placed in them has no other better chance elsewhere, yes youo can still hold. In any case, your paper gain is already impeccable and hard to erase (save for a major crisis or a dreaded Black Swan).

Just make sure you'll have the extra cash to deposit when the prices become more attractive.

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