Global Markets Hold Their Breath…

Nicholas Vardy

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

Global markets continued to get hit hard by the fallout from the events in Libya. The revolts spreading across the Mideast are indeed morphing into the Arab world’s version of what 1989 was for Eastern Europe.

Advertisement.

With the rising uncertainty in global markets, most of your positions in your Global Stock Investor portfolio pulled back this week, as both commodities and emerging markets were hit hard by the fallout from the protests in Libya.

Your exit last week from Taiwan, South Korea and Malaysia now seems well-timed. Even though the long-term prospects of these markets remain intact, I want to re-focus your Global Stock Investor portfolio on areas which make the most money. And that is what we have been doing by exiting our emerging markets holdings in a disciplined fashion.

Overall, this is a time to be cautious, and to pull in your horns a bit. At the same time, it’s important not to lose focus on the good news in the global economy. I remain bullish in technology, agriculture, Japanese small-cap stocks and oil as it climbs back over the $100 a barrel level. These investment themes are represented by your positions in Universal Display Corp. (PANL), Agrium Inc. (AGU), WisdomTree Japan SmallCap Dividend (DFJ) and the Market Vectors Russia ETF (RSX), respectively. Although none of these positions are extremely oversold just quite yet, you can feel comfortable in adding to these positions even if the market continues its pullback in the coming days.

Advertisement.

Your biggest downside exposure is in your remaining (non-oil related) global commodity bets. So keep an eye on your positions in both Freeport-McMoRan Copper & Gold, Inc. (FCX) and Vale S.A. (VALE), as they begin to flirt with their stop prices.

Exclusive  Is It Time to Cut Interest Rates?

From a risk-management standpoint, if a position has fallen below its 50-day moving average, I am moving it to (or keeping it at) a HOLD. If a position rises back through its 50-day moving average, then I have moved it back to a BUY. Based on this discipline, I have moved WisdomTree Dreyfus Chinese Yuan Fund (CYB) and the Global X FTSE Nordic 30 ETF (GXF) back to a HOLD.

Here’s a special note to the subscribers who I saw at my “private meeting” during the Orlando MoneyShow two weeks ago. If you completed an evaluation form, you should have already received a copy of my presentation “7 Red Hot Bull Markets to Own Now.” If you did not receive it — or you were unable to attend the meeting — you can download a presentation by clicking here. In it, you will find at least four new investment ideas that you have not seen in Global Stock Investor. It will also give a peek at the kinds of investments I recommend in my fast-paced Global Bull Market Alert trading service.

Portfolio Update

Advertisement.

Agrium Inc. (AGU) dropped 5.12% this past week. The company recorded net earnings of $158 million, or $1.00 per share, in the fourth quarter of 2010, missing consensus estimates by 14 cents per share. In fiscal year 2010, Agrium posted net earnings of $714 million, or $4.52 per share. With the stock still trading above its 50-day moving average, AGU remains a BUY.

The WisdomTree Dreyfus Chinese Yuan Fund (CYB) dropped 0.16% this past week. Now trading back below its 50-day moving average, CYB is a HOLD.

Exclusive  Act Now or Pay Later: The 2025 Tax Surge Is Coming

WisdomTree Japan SmallCap Dividend (DFJ) was trading up until yesterday’s sell-off of 2.30%. I’m seeing more and more fund managers becoming bullish on the prospects of Japanese stocks, even as Moody’s downgraded the outlook on Japanese government debt to negative. DFJ remains a BUY.

Freeport-McMoRan Copper & Gold, Inc. (FCX) dropped 7.81% this past week, is now in its biggest correction since last May, and is nearing its stop price of $47.50. Trading below its 50-day moving average, this volatile stock is a HOLD.

Global X FTSE Nordic 30 ETF (GXF) fell .98% this past week. GXF component A.P. MOLLER-MAERSK A/S, the world’s biggest container-shipping company, said it returned to profitability in 2010 due to streamlined costs and a rebound in the container-shipping industry. Now trading below its 50-day moving average, GXF is a HOLD.

Advertisement.

JinkoSolar Holding Co., Ltd. (JKS) dropped 2.04% this past week. This is a volatile stock that will always get hit when markets sell off sharply. Still above its 50-day moving average, JKS remains a volatile BUY.

Las Vegas Sands Corp. (LVS) dropped back 4.84% this past week. The company has announced it has plans to build a gaming, hotels and leisure project in Spain costing $13.6 billion — $20.4 billion. Sheldon Adelson, the CEO of Las Vegas Sands Corp., said, “I want to do a mini Las Vegas… I want to build 20,000-plus rooms and millions of square feet of shopping and MICE space, and we have a study that says we can create as many as 180,000 jobs.” Trading back under its 50-day moving average, Asia’s Las Vegas is now a HOLD.

Exclusive  George Gilder Discusses Blockchain, the Graphene Age and More in Interview on NYSE Floor

Market Vectors Russia ETF (RSX) traded flat this week, as its oil rich companies fended off the sell-off in emerging markets well. Falling below its 50-day moving average for the first time since September, RSX remains a BUY.

Universal Display Corp. (PANL) hit a record high of $44.79 on Thursday before ending the week flat. If you can stomach the volatility, this is a terrific time to add to your position in this stock. PANL remains a solid BUY.

Vale S.A. (VALE) dropped 4.84% this week. Some investors are beginning to question how much better it can get in commodities, especially if you start to see these governments trying to rein in inflation. Trading below its 50-day moving average, Vale is a HOLD.

Advertisement.
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


img
share on:

PREMIUM SERVICES FOR INVESTORS

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
LEARN MORE HERE

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 PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader
LEARN MORE HERE

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
  • Eagle Eye Opener
LEARN MORE HERE

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
LEARN MORE HERE

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
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com 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
LEARN MORE HERE

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle
LEARN MORE HERE

DayTradeSPY

DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops
LEARN MORE HERE