Wednesday, August 31, 2011

Stocks are no longer oversold

As has been hoped for, stocks have rebounded and quite strongly too, from the Aug 9 low. In my opinion however, the Aug 9 low is not the bottom yet. I expect the rebound to be short-lived ( a couple months), but will be using it to take profit and trim loss-making positions. I will no longer be adding positions.

After this rebound, another round of selling will come. I want to be prepared for that. Things I am considering doing include shorting indexes, buying gold and buying gold mining companies.

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