The Global Bull Takes A Breather 2

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

As of now, investors are more cautious than panicked. But with the markets up sharply and technically overbought since early March, the current scare may be an excuse for markets to take a breather.

This recent uncertainty notwithstanding, your Global Bull Market Alert portfolio had a solid week. Your two positions in emerging markets — the iShares MSCI Taiwan Index (EWT) and the iShares MSCI BRIC Index ETF (BKF) — rose sharply, and now are up 4.4% and 7.9%, respectively, since our initial recommendation.

Both the SPDR Gold Shares ETF (GLD) and the PowerShares DB Gold Double Long ETN (DGP) rose 5.3% and 11.44% last week, respectively, boosted by news that China has nearly doubled its gold reserves since 2003 to become the world’s fifth-largest holder of gold, behind Italy. Your other holding in metals, the iPath DJ AIG Copper TR Sub-Idx ETN (JJC), fell last week, but still is up 11% since my initial recommendation.

All of your other positions, with the exception of your short position in the CurrencyShares British Pound Sterling Trust (FXB), remain BUYS.

Portfolio Update

The iShares MSCI BRIC Index ETF (BKF) hit a high last week not seen since Oct. 3, as the big emerging markets continue to outperform their developed peers. BKF is a BUY.

The Market Vectors Double Short Euro ETN (DRR) dropped last week, despite continued signs that the eurozone is in worse shape than the United States. DRR is a BUY.

The iShares MSCI Chile Investable Market Index (ECH) was flat last week. With no sector accounting for more than a 15% weighting, and financials only accounting for roughly 10% of the index fund, this is one of the most emerging market ETFs around, and it remains a BUY.

Exclusive  3 Best Penny Stocks to Buy Now

The iShares MSCI Taiwan Index (EWT) got off to a solid start, jumping 4.4% this past week. Momentum in this ETF is supported by a combination of increased demand from a still fast-growing China and a heavy weighting in the relatively strong technology sector. It remains a BUY. Tighten your stop to $7.80.

The CurrencyShares British Pound Sterling Trust (FXB) ended the week flat, despite the announcement of a widely derided budget by U.K. Chancellor Alistair Darling this past week. Although the pressure on the British pound sterling remains all on the downside, I am keeping this short position in FXB at a HOLD.

Both the SPDR Gold Shares ETF (GLD) and the PowerShares DB Gold Double Long ETN (DGP) had big weeks, as gold breached the $914 level for the first time since March. Gold tends to perform well when nervousness in the market increases. With both of these positions sharply oversold, I am moving the recommendation on each of them back to a BUY.

Your position in the iShares iBoxx $ High Yield Corporate Bond (HYG) sold off slightly last week. Look for a dividend payment coming up next week. HYG remains a BUY. Tighten your stop to $65.50.

The iPath DJ AIG Copper TR Sub-Idx ETN (JJC) fell back under the $30 level last week. With JJC now as oversold as it has been in months, I am keeping it at a BUY

Your Rydex Inverse Government Long Bond Strategy Inverse (RYJUX) jumped to $14.30, a level not seen since March 17. Your bet against U.S. Treasuries remains a BUY.

P.S. Gain the knowledge and insights you need to make smart investment decisions at the most important investor gathering in 2009. Join me for this year’s Money Show Las Vegas, May 11-14, 2009, at the Mandalay Bay Resort and learn how the experts are finding profitable opportunities during the market crisis and how to position your portfolio for safety and growth. To register FREE, call 800/970-4355 and mention priority code 012653 or register online!

share on:

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE

previous article

Global markets have gotten choppier over the past week or so, as they stand on the cusp of a correction or a sharper move upwards. Overall, global stock markets are feeling healthier than even a month ago. If history is any guide, the market may head upwards for another few weeks, before it's time to "sell in May, go away."

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Profits Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Technical Traders Alert
  • Success Trading Group

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor