With Global Stock Markets Listless, the Global Bull Takes a Break

Nicholas Vardy

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

These times tend to occur more often in the listless trading months of July and August. Over the past few weeks, global markets have been characterized by see-saw trading typical of the summer months. With trading volumes low, markets also tend to overreact to the latest piece of good or bad news. One day, a bearish piece of news will lead the market to sell off sharply. Another day, further signs of "green shoots" will put the bulls back in control. The bottom line? I expect the range-bound trading to continue between now and Labor Day.

PowerShares DB Commodity Double Long ETN (DYY) hit its stop of $6.25 this morning. As a result, this bet on crude oil, heating oil, corn, wheat, gold and aluminum no longer is part of our portfolio.

That said, all of your remaining Global Bull Market Alert stock market positions remain firmly above their 200-day moving averages, confirming that they are in a long-term uptrend.

Portfolio Update

The iShares MSCI BRIC Index ETF (BKF) fell this week as Brazil, Russia, India and China all pulled back slightly. BKF is a BUY.

WisdomTree Dreyfus Emerging Currency ETF (CEW) breached the $21 mark for the first time ever, ending the week up as emerging currencies continue to gain against the U.S. dollar. CEW remains a BUY.

The iShares MSCI Chile Investable Market Index (ECH) closed just below the $45 mark last week. With Chile boasting some of the strongest macro-economic fundamentals around, ECH remains a BUY.

The iShares MSCI Israel Cap Invest Mkt Index (EIS) bucked the listless trend and rose to $42.65 last Thursday, before easing back on Friday’s global sell-off. That shows some terrific relative strength for last week’s Global Bull Market Alert pick. EIS remains a BUY.

The iShares MSCI Hong Kong Index (EWH) dipped below the $14.00 level again as Asian markets fell back. I am moving EWH to a HOLD.

Both the SPDR Gold Shares ETF (GLD) and the PowerShares DB Gold Double Long ETN (DGP) continue to trade in a relatively narrow range. Both remain a defensive BUY.

The iPath DJ AIG Copper TR Sub-Idx ETN (JJC) popped back over the $32 level, before correcting Friday. With green shoots of recovery sprouting throughout the global economy, “Dr. Copper” remains a BUY.

Russia’s Mechel (MTL) fell again last week. This position has the potential to soar 30% on any sustained improvement in sentiment. But for now, I am keeping MTL at a HOLD.

Your Rydex Inverse Government Long Bond Strategy Inverse (RYJUX) dropped below the $15 level as risk-averse investors flocked into U.S. Treasury bonds. With government borrowing soaring, RYJUX remains a BUY.

Shanda Interactive Entertainment Ltd. (SNDA) fell this past week as investors pulled out of riskier, more volatile picks. With the Chinese market outperforming its global counterparts, this Chinese gaming stock remains a BUY.

Rydex Weakening Dollar 2x Strategy H (RYWBX) was flat this week on listless trading in the world’s currencies. A bet on continued U.S. dollar weakness, RYWBX remains a BUY.

P.S. The constantly changing market environment continues to present investors with some of the most challenging times in recent history. Not since the Industrial Revolution has the financial landscape seen such major shifts in how wealth is held today. The MoneyShow is the only forum where you’ll meet, hear from, and find out how to profit from leading experts. Join me at this year’s MoneyShow San Francisco, August 21-23, 2009, at the San Francisco Marriott, where I will address some of the most pressing issues facing us today and introduce you to the newest and most successful tools and strategies for managing your portfolios in these challenging times. I urge you to attend and I look forward to meeting you personally. Register FREE by calling 800/970-4355 (priority code 014319) or by going online at The MoneyShow San Francisco!

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