Weekly Strategy 17 Feb

In general, I still think BRC (Brazil, Russian, China) markets are at the position of strategic investment for long term purpose (more than 1year).

For next week, I'll go to Slovenia for project meeting, while I'll not be able to stay online as usual, also I am not be able to cover the intraday trading strategies.

Today I would like you to draw attention to following stocks next week on my pick list:

Finance: JPM LEH
Metal: RIO, PCU, FCX, PKX
Food and Ag: WBD MOS
Energy: PBR CEO CPL
Health: NVO TEVA

As we know, next 19th and 20th are key to the direction of overall market, in particular, I've seen some signals for a rebound of financial sector. If it happens in next 1 or 2 trading days, we at least will see another test of 12750, the very probably 13000, and 13200 possibly.

Tech was weak in previous trading day and I assume it will continue to rebound as it has been oversold in mid-term.

Signals show that we will have an uptrend to 13000 area in next 2-3 weeks if we see the rebound of financial and tech sectors in next 1-2 trading days unless I have another warning message sent around later. So I would propose that a half position of the stock account can be put into long side in this case. The above-listed stocks are preferable to me for these long positions.

Please bear in mind my stop-loss strategy: You only buy on the intraday resistance and use very tight stop loss (1%) to control your risk. In this case, you can make money even half your judgment is wrong.