This Week’s Commentary – October 13, 2007 – Brief and to the Point

by JDH on October 13, 2007

Today my comments will be brief and to the point, for one simple reason: not much has changed since last week.

Last week I said:

“Given this uncertainty, the only logical strategy, as discussed last week, is to begin buying, very slowly, and with stink bids, to gradually accumulate a position during the balance of October, in anticipation of a much higher November and December.

I therefore took this week as a buying opportunity, and placed a number of bids on the stocks I want to own, at below market prices, on the assumption we will have some down days which will carry my selected stocks into the range at which I want to buy.”

I then went on to give this link to my target portfolio:

JDH Target Portfolio

So, as suggested, this week I began to buy. I placed orders on all of the stocks I wanted in my portfolio. Most of them didn’t get filled at the levels I wanted, but for some of the stocks, as they had down days, I was buying.

As a result, I am now only 47% in cash, a big change from the 80% cash I was holding a month ago.

Gold had a good week; it was down early in the week, but had a big uptick on Thursday. The RSI that I watch is now at 66.04, somewhat better than the overbought levels over 70 we were seeing during the last two weeks of September.

The possibility of a small pullback in gold still exists, and we have yet to have a big down day or two in the last two weeks. The possibility of a minor correction still exists, which is why I still have lots of cash available. But the charts are clear: stocks are moving up, so there is no point in being totally on the side lines as stocks move higher.

I will continue to selectively deploy cash over the next few weeks, in anticipation of a very good November and December.

So there you go; brief and to the point. Perhaps I will be more verbose next week.

Feel free to do my talking for me this week by posting your thoughts on the Buy High Sell Higher Forum.

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