I have posted up two key interviews on the website for you. In the first one talked with Ike Iossif of marketviews.tv about the stock of the week. He interviewed me about this stock. You can find this quick six minute segment here:
I also talked with David Skarica of addictedtoprofits.net. I haven’t talked with Dave in a few weeks, because the hurricane that hit the Bahamas where he lives has taken his attention as it has everyone in the country. Now that things are getting back to normal for him he gave me his updated views of the markets and a new stock he is getting into. You can find this interview here:
Now take a look at this chart of ACB. I pointed out in my post yesterday that ACB is now a lagging stock making it risky to hold much less buy into.
Well yesterday it completely dumped for an 8.4% drop.
The relative strength line is on the bottom of the chart and as you can see it has been in a steady decline since March showing us that it has been badly lagging the action of the S&P 500.
The move last week now looks like a dead cat bounce. This isn’t happening with the other dope stocks, but just ACB. Hopefully ACB’s action is not a sign of what is to come for the rest.
Now take a look at KL, which has been leading the stock market all year.
I own KL and actually made it my top stock pick for July.
As a general rule of thumb when you own a badly lagging stock you want to sell it on bounces and you want to buy stocks that are leading the market when they have dips. I am not sure yet if the dip in gold and the mining stocks like KL is over yet, but you can never predict the exact price something will bottom at ahead of time. That is why I just use small positions when I buy an individual stocks.
Interestingly enough most of the small cap mining stocks have barely fallen at all over the past week even though the big cap mining stocks have. I hope to have a new pick for you in this arena before the month is over.
That’s one thing I talked with Ike Iossif about in my talk with him you can find listen to by clicking here.