GLN

Patience is key to opportunism

We’ve said a few time in the past that patience is key. The main benefit of being patient when it comes to trading is that we can wait for the really good setups to mature and then take trades in which the odds are firmly skewed in our favour. Some of the stocks we’ve been watching for a long time have finally triggered buy signals.

Hold tight, we’re trending higher

Volatility is subsiding and markets are feeling more confident than they have for some time. We can debate about logic and valuations and inflation for days on end. In the end though, it will boil down to “yes, nothing makes sense” and “don’t fight the FED”. The money printer is going brrrr and all we can do is hold tight while the bulls give another run.

VIX below 20 signals risk on

Markets have been uneasy for a rather long time now. Well, uneasy is perhaps a mild way to put it. Markets have been uneasy for the last few months, maybe, but just over a year ago markets were in a full-blown panic. Thankfully those crazy times have passed. Over the last two weeks, we’ve even seen the VIX below 20, which is something that has not happened in a mighty long time. Lower volatility signals higher risk appetite and we think a VIX below 20 signals risk on in equity markets.

Time for a pullback?

Over the last few weeks, markets have remained rather strong in the face of many challenges. Last week we finally got confirmation that more stimulus cheques are in the mail for Americans, although it seems that $1.9 trillion was not enough to help equity indices end the week in the green. Risks remain elevated and volatility is stubbornly not abating, thus we are starting to think that it is time for a pullback. There are a few long indeas in precious metals and commodities, but for the most part, caution is advised.

Weekly game plan 20 September 2020

Over the last few weeks we’ve shared some thoughts about the fundamental picture we are seeing, and thus fired off a few warnings about the sustainability of the tech rally. This week we’ll keep things simple and only consider the charts, without having the fundamentals interfere with our thinking.

Weekly game plan 30 August 2020

Over the last few weeks the tone of the Weekly game plan and the trade ideas coming out of the International outlook blogs have become somewhat more bearish. Whether or not we are completely missing the mark here is still to be seen, however we are becoming more and more concerned about the sustainability of the current developed market (particularly U.S.) rally.

Weekly game plan 23 August 2020

Building on some of the thoughts we shared in our blog post last week (U.S. commentary), we want to start off the weekly game plan by urging caution. We need to remain ‘trend followers’ and keep dancing while the music is playing, but we must acknowledge the possibility that the carpet can be swept out from under us at any minute. Most importantly, we need to be ready to jump when the carpet is pulled so that we don’t fall flat on our faces… but also not spend the entire party just jumping up and down in the middle of where everyone else is trying to have a good time. It is best then to keep a flexible ‘everything is temporary’ mindset, and be open and ready to change our views when presented with evidence contrary to what we might think we know.

Weekly game plan 16 August 2020

We’re not going to get into too much detail here today. The world is looking forward to a COVID-19 vaccine and we think that markets will likely continue to respond positively. On the home front, it seems that most of the lockdown restrictions are being lifted as well, which will likely positively boost selected sectors and stocks in the week ahead.

Scroll to Top

Need some help?

Please provide your contact details so that we can be in touch.

Your message is on its way to us!

We will be in touch with you shortly.

In the meantime, check out our other pages with the drop down below:

We really appreciate you reaching out. We will be in touch with you within two business days.