So here we are, after some six months of lethargic action which all and sundry translated into the beginning of the correction. Yet again the market has come around to my way of thinking that there is indeed at least another leg up on the bull market remaining.
This is something I have been insisting on all along, with a target of DJIA 20,000 by this Christmas.
So, if you are still waiting for this thing to go down, crash, break and fall apart, you have to wait to 2016 to get another chance. This thing is not coming down from around these levels until the end of the year at the very least.
The strategy for equities should be, buy on weakness rather than short on strength.
Poundland ( PLND), for which I have screamed a buy since three weeks ago at £3.21 has hit £3.46 with a target of £3.60/70. Having said that, I can see some large profit taking at £3.50ish, so make your choice if you are long.
My other longs BHP Billiton (BLT) and Lloyds (LLOY) will be bearing fruit shortly as I am confident the FTSE is going to follow the rise of the DJIA, not as energetically, but follow it will.
I closed the long on TESCO (TSCO) at £2.17 as I had indicated previously… I went long at £2.02ish.
I’m looking to short Tesco again, but want to see if it still has legs to go higher in a positive market.
I do not have a position, but National Grid (NG.) is looking very good for a long to £9.10 in the short term, at present £8.60ish.
All in all, the mind-set is certainly moving in the bullish direction and the speed of buying will gather pace in August.
Good luck
All in my humble opinion and no investment advice intended.
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Andre