I try to identify trends to trade on multiple time frames. It can be either to the long side or the short side. For example I believe in the long term fundamentals of UEPS, a company I have been following for a couple of years. I hold a core portfolio of their stock in a long term account here in SA. Then I also have a trading account in the US with Ameritrade where I try to trade the swings in UEPS and other stocks.
I also hold an account with Interactive Brokers in the US where I trade my day trades in stocks and futures as well as forex. Currently I focus on the short side of trades in the commodity sector, especially steel stocks and iron ore stocks, as I believe their fundamentals are fading. I base my views on research of historic price trends combined with current news flow regarding the industry fundamentals.
See below graph for historic prices for both Iron Ore and Coal. If this does not look like a bubble for a commodity, then I don’t know how one looks like. Also, I have read research by a leading Asset manager here in SA that at current prices for both these commodities, the payback time for capital costs is 12 months, so that should encourage a lot of extra supply very quickly.
good one… i needed this
thank u so much