Monday 4 July 2011

AIM Bounce - Buy Confirmed

After a dire 6 months, the terrible Greek fudge (its very dry and has little sugar) seems to have done the trick re the AIM market. many resources stocks have been 40% or more and since last week have gone into full recovery mode. Normally, I like to see a good few days in the blue to confirm and recovery and we are looking to achieve that today.

Even better, some of the most oversold stocks like Xcite energy are bouncing back (from a very low base); another good sign in that it shows a rising tide rather than being selective.

Long may it continue as the March to June sell off was horrific on no news and the approach to risky AIM shares was amazing, clearly many hedge funds and funds dumped most of their holdings.

Also very encouraging is that there is no big sell-off with the end of QE in America; this was a distinct possibility and it may still happen- but lots of bullish notes out today suggest those in the markets are discounting it.

9 comments:

Nick Drew said...

has QE really finishd ?

do you go along with the view that the oil stocks release is just part 1 of stealth-QE ?

(hasn't done much to dampen Brent though, has it ? still, no-one said Obama knew what he was doing ...)

CityUnslicker said...

Nah, that has to be pure conspiracy. The oil release is more political, trying to leverage a position versus OPEC where the countries are pretty split?

the likley market impactwas always going to be short and pointless, much more is about positioning opppositeOPEC?

Anonymous said...

You are both missing the point.

All the underhand global manipulation is done via the Exchange Equalisation Fund.

Budgie said...

I am heartily glad of the bounce back. Now I have only lost a medium amount, instead of a lot. I thought of buying Xcite at 110 (now 170) - ah well - 20/20 hindsight is a wonderful thing. Now Mrs Budgie only hits me with the rolling pin every other day.

Timbo614 said...

Enjoy your rally while it lasts...

I no longer have to worry about it undecided whether to put a "smiley" or a (temporary) "saddie"

CityUnslicker said...

the rally should last a bit yet. I never buy the 'global markets are fixed' thing - you know lots of rich bileberger types go broke too you know? All those sharp bankers went tits up in the 2008 crash - itsnot a fix, the world is too complex for it and humans not bright enough.

Timbo614 said...

I don't think the market is any more fixed now than it has ever been.

I just considered the Greek risk too high. It passed (for now) I was on the wrong side of the bet. Ho Hum. Next time. Won't be in cash forever... There's no money in cash at the moment.

Budgie said...

"There's no money in cash at the moment."
- Chortle

Budgie said...

"it's not a fix, the world is too complex for it and humans not bright enough."

That is very much my view too, CU. Conspiracy theorists are over sceptical about the commonly accepted or official explanation, whilst being woefully gullible about the latest internet wheeze. Me, I try to be mildly sceptical of the lot.