Pausing for Breath, Waiting for a Pullback

Nicholas Vardy

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

This morning, European governments announced that they will extend a €30-billion lifeline to debt-stricken Greece, with the International Monetary Fund to chip in if more is required. This development will negatively affect your position in the UltraShort Euro ProShares (EUO). This is hardly the end of the weak euro story. But over the short term, this position remains a HOLD.

All the good news notwithstanding, I would not be surprised to see a pullback in global markets this week or next. This process may have already started. Many of your Global Bull Market Alert portfolio positions peaked on Monday or Tuesday and pulled back in the second half of the week. That said, the fundamentals of your positions remain in place. And all of your current stock positions are bets on growth companies closely linked to the improving health of the rallying global economy.

You were stopped out of National Bank of Greece (NBG) on intraday trading last Thursday, after Fitch downgraded Greece to BBB-, the lowest level of investment-grade ratings. This was frustrating, as I am bullish on the stock in the long term, and I continue to hold it for my clients at Global Guru Capital. Once the Greek crisis is “settled” for good, this position could easily double.

Portfolio Update

Aixtron AG Ads (AIXG) ended the week slightly lower during its first week in the Global Bull Market Alert portfolio. But AIXG remains both a strong fundamental and momentum play, and this recent slight pullback is a good time to add to your position. AIXG remains a BUY.

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Cognizant Technology Solutions Corp. (CTSH) jumped 1.8% this past week, after hitting a yearly high of $52.25 on Tuesday. The company will announce results for the first quarter of 2010 on Tuesday, May 4, 2010, before the market opens. CTSH remains a BUY.

UltraShort Euro ProShares (EUO) ended the week slightly higher as the euro approached an 11-month low last week. The back and forth surrounding Greece’s fate in Europe continues, and this is held hostage to the news of the day. Your bet against the European currency is a HOLD.

Millicom International (MICC) was flat this week. With the stock back above $90 in aftermarket trading, and JP Morgan upgrading the stock to “overweight,” MICC remains a BUY. Raise your stop to $79.00.

Mechel (MTL) pulled back slightly this week, after hitting a yearly high of $31.13 last Monday. With the price of iron ore, and by extension steel, set to soar, this highly volatile Russian stock remains a BUY.

China North East Petroleum Holdings Ltd (NEP) popped 11.26% last week. NEP is the second-most profitable stock in its sector on the planet, with a net profit margin of 39.20% for the last 12 months, and an operating profit margin of 64.02% for the same period. More good news? The stock soared on a huge jump in volume on Tuesday. NEP remains a BUY.

P.S. Don’t miss out on the 22nd annual MoneyShow Las Vegas, May 10-13 2010 at Caesars Palace. This event will be your one-stop resource for the comprehensive education, efficient research, and valuable advice you need to make smart investment decisions in 2010 and beyond. Join me there and hear leading experts reveal where they see growth opportunities in stocks, bonds, ETFs, commodities, and options. Also learn about which overseas markets may outperform in the near term. Visit The MoneyShow Las Vegas to register FREE online, or call 800/970-4355 and mention priority code 017443 today!

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P.P.S. If you want to keep up with my latest insights on developments in fast-paced global markets, you can now follow me on Twitter on @NickVardy.

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Global stock markets continued to recover over the past week, with markets up across the board for the past three trading days. This was reflected in your Global Stock Investor portfolio where all but two of your stock-related positions rose at least 4%.

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