Category Archives: Trades I made

30th October 2013 — Banking BP

At the end of August my MIDAS system gave a very clear read on BP. It said to buy.

And so buy I did.

I managed to open at 441p and today sold out at 485p for a fantastic, leveraged, tax free profit!

I saw Zak’s video this morning suggesting there was more upside to come for BP, but in my position I was happy to bank the profit. From a MIDAS perspective, what’s just happened with BP is a fairly common occurrence; a beleaguered stock in a bull market pulls back to long term primary support and then spends a couple of months consolidating at that level. During this time management becomes increasingly exasperated with the stock’s performance (after all those bonuses aren’t given out for languishing share prices!) and surprises the market with a positive corporate action. Usually this comes in the form of a share buyback or, as in the case of BP, a surprise dividend.

 

To finish reading this article please click here to visit www.spreadbetmagazine.com

26th September 2013 — GDX, an alternative leveraged gold play

The GDX (or Market Vectors Gold Miners ETF as it is rather long-windedly known!) has been causing a bit of a stir, here at Spreadbet HQ, over the last few months. This ETF bundles a collection of gold and silver associated stocks together in an effort to track the NYSE Arca Gold Miners Index (GDM). It offers investors and spreadbetters a leveraged play on the price of gold and is tradeable on the larger spreadbetting websites.

Now I know I’m about to bang on again about yet another gold related story, but bear with me. This really is an exciting time for the precious metal and if our house line is right (buy, buy, buy!) then this could prove to be an exceptionally profitable trade. As with all these things, timing is everything and now looks like the time to be buying. Even if we are wrong, downside can be managed with fairly tight guaranteed stops, so the risk/reward is definitely on our side.

 

To finish reading this article, please click here to visit www.spreadbetmagazine.com

23rd September 2013 — The MIDAS Touch

King Midas’ legendary ‘curse’ was that all he touched turned to gold. If only my trading fortunes were blessed with such ill (good) luck! Today, rather than a Midas touch, I find myself faced with a MIDAS test.

OK, I am sorry, enough of the terrible puns!

Immediately before the FOMC bottled making a decision (which in hindsight wasn’t much of a shock I suppose), I released this piece, which analysed the gold price in the context of the MIDAS method. So far this summer, MIDAS has made some fantastic calls in various commodity markets (copper, natural gas, silver and gold). During this time, experienced users of MIDAS will have been able to get in and out of these markets, as crucial levels of support and resistance were confirmed and failed.

 

To finish reading this article, please click here to visit www.spreadbetmagazine.com

18th September 2013 — Gold; a test of faith

We’ve been quite categorical about our position on gold over the summer. We are bullish and believe the current pullback represents a buying opportunity.

It is true that many die-hard gold bugs loudly proclaimed their allegiance to the precious metal from the top, all the way to the bottom, losing fortunes in the process. While we hope we haven’t been afflicted by the same investment fanaticism, we are betting that the latest weakness is a precursor to the next move higher. It is possible that the recent drops have been exacerbated by taper-related speculation, but we are now at or are approaching several key areas of technical interest. As always, we let ourselves be guided by what the charts have to tell us.

 

To continue reading this article, please clicke here to visit www.spreadbetmagazine.com

16th August 2013 — A gift of a chart on the Dow

Make no mistake; the following chart is an absolute gift as far as I am concerned.

If you’ve been following my narrative on US stocks in the last few months, you’ll know I’m bearish because I believe the outlook for American QE has fundamentally changed. Naturally, I have been seeking opportunities to go short. To be honest this hasn’t exactly been a genius play. If anything it’s been a bit too easy, but I’m never one to look a gift horse in the mouth.

 

To continue reading this article, please click here to visit www.spreadbetmagazine.com