Dear readers and traders. In the weekend i'll look for good buying or selling opportunities for the next week and now I'll start sharing them on steemit. I'm using different tools to make my analysis, one of them is the Economic Confidence Model of Martin Armstrong. It shows for example one stock or index which is breaking out or pushing higher. I'll write some of them down and then i'm looking at the charts of the different stocks, indexes etc. The next thing I look for is the major events of the next week, usually some nice trading opportunities. Below you'll find my picks for week 2 of 2018.
My buylist for week 2
Gold has gone up this year and so has the mining stocks and when commodity prices are rising, so do the mining shares, and naturally they will rise faster. Below are some mining shares, which could be a nice buy.
- PLM, Polymet Mining Corp., this company got new mining permits and rose +10% after the good news broke. It nearly doubled in two months time, but has further space to breakout.
- YRI/AUY, Yamana Gold Inc., a large well known Canadian mining company
- ZIJMF, Zijin Mining Group Company Limited, with a 14 billion market cap and a p/e of 23.22 is trading at the moment at a 52 week high, but with rising commodity prices this company can still do much better.
Although many scientist and politicians keep on talking about global warming, the opposite actually might happen: global cooling. The first signs of a global cooling are visible as the sunspot activity is currently at a minimum. This simply means the temperature on earth will get colder. It gives us some nice trading opportunities, as the majority still believes in another scenario. My analysis is that oil prices will rise further next week, after all colder temperatures means more fuel usage to heat houses. With rising oil prices, oil related companies can make better profits. Some oil related companies on my buylist are:
- MRO, Marathon Oil Corporation
- RDS, Royal Dutch Shell
- SHI, Sinopec, with P/E ratio of 7,4 i would say a must buy
Other trading suggestions:
- EBAY, after the Christmas holidays, i expect EBAY had records sales and this will give a boost to their stock price.
- BRL/USD, after the corruptions scandals in the political sphere and the following decline of the currency and the stock markets, it's time to step back in the Brazilian markets. The Brazilian Real is in a breakout, as is the IBOVESPA, the Brazilian stock market.
Events to watch:
There will be several important events, the week begins with some important numbers from Germany
- thursday 11/02 at 1330: ECB notes
- friday 11/02 at 1200: Wells Fargo 4th Quarter
- friday 11/02 at 1300: JP Morgan 4th Quarter
I've been making this kind of analysis the past two years, since i started trading and it has helped me a lot to become a better trader. I try as much as possible to keep my own opinion out of the analysis, since it's biased and not helpful for making profits. Hopefully you've found some good trading suggestions. As i'm still learning everyday about trading, i would love to hear your insights and comments.
Enjoy trading.