Nobody saw it coming, right? Nobody saw Omicron coming, although we suspected that the government might play with the numbers to justify another lockdown. The discovery of Omicron and the subsequent ban of South Africa by Britain sent a shockwave to the JSE, and the global markets went spared either.
Fortunately I was on the road during that "Black Friday", this was a blessing in disguised because I probably would've panicked and sold some of my stocks. Some stocks were whacked and selling would've been warranted, but we're used to COVID now. Still a scourge but a scourge we've learnt to live with, so why the market panic? This is how I felt as I checked my portfolio, there was some damage but most stocks were still trading above their 50EMA. I felt that the market was overreacting and the sell-off wasn't warranted, but who can control fear. The plan was to wait for Monday open to check if the carnage continues, which would've widened my paper losses. Not that there was something I could do over the weekend, the only time I had to check the charts. Luckily, we had a super green Monday; leaders continued to lead, strong stocks recovered, even the weak stocks had a bit of a rally. Smile everyone.
The main highlight was the JSE Top40 registering a new all time high, that's a sign of a bullish market. Other global indices are still struggling, the US markets had a rough week, Cathie Wood's ARK ETFs caught hands, Docusign got clapped hard on Friday! Locally, the show must go on.
In the past few weeks we saw what mimic a rotation, the resources finding ground and retailers (and some banks) giving back some gains. I've been bearing on resources, I had no position for most part of they year and i added South32 recently (and I liked Glencore too). Gold miners led the recovery, platinum stocks are still divided with Sibanye still depressed.
Anglo-Gold Anglo (ANG)
ANG recovery began in September but it was more convincing when it closed above the 200EMA early November. We might see a Golden Cross soon, about a year later since the 50EMA was above the 200EMA. The ideal scenario is that the price continue to move up and is supported by these moving averages.
Anglo-American Platinum (AMS)
AMS has a similar setup to ANG although the price didn't stay that long below the 200EMA.
Impala Platinum (IMP)
One of the best previous performers, with fat dividends at some point. From April, IMP started struggling to move up, and fell back to the R180 region support level. It found support there with few attempts to break above the 200EMA. The recent attempt is promising and it offers an opportunity for a swing trade, targeting the previous high of R280-ish.
Capitec (CPI)
The uptrend is still intact, waiting to see if the stock will break the recent resistance level at R1900. I'm still hopeful for #CPI2000; #NPN4000 disappointed us a lot, so far Naspers is just a giant that's dragging the JSE down.
Dell Technologies (DELL)
Dell hit an all time high last Friday, and that's the reason why I'm buying it. That's all I can say using Trend Following.
Happy trading. As always, manage risk.
Comments
Post a Comment