Punter's Back!!!!! (Has the market bottomed?)

[davidslane]

Punter's back!

I'm not sure what significance to put on this seminal event.

Does it mark the market bottom?
Salvation from the margin call clerks?


Not sure, but I wanted to be the first to officially welcome Punter back after his long, long vacation.

[john77]

I second that welcome back.

Did anyone get hit by a margin call last night? Are they meeting the call, selling, or waiting for a bounce to avoid a sell?

[davidslane]

Luckily, my resource stocks aren't eligible for margin.

So the only losses that affect my margin eligibility are big stocks and ETFs (like APA, APC, SGR, EWZ).  Granted, stocks like URZ, URRE, GG, KGC also affect my margin requirements.

I sold some stock on Friday in the morning when the market rallied to prepare for a larger crash.

Glad I did.

It gave me the room not to get margin called.


So far, today's recovery in the US (my accounts were closed yesterday in the US for the holiday), has limited the damage, so I'm clear from any margin calls.


If you get a margin call, sell just enough to meet it.  Don't add cash if you can help it.  Just sell your weakest positions just enough to cover.

[john77]

Davidslane,

Why would you not recommend adding cash to meet a margin call? I hear and read about that always too but can't figure out the reason as adding cash might avoid selling at a bottom.

[sunseeker]

As you know I am on holiday. What a busy crew you are all being while I am away. Bought more gold earlier on. Thanks for all the updates.

Welcome back Punter we have missed you my friend.

Some busmans holiday though!!!

[punter]

Gee whiz guys, I'm all gushy. I was travelling, and am trying to get more interested in life as opposed to obsessing over the markets all the time. Showing my age I suppose. I'm not sure whether you'd want to track me as any kind of sentiment indicator. I've been buying all along, just in smaller increments, in dividend and distribution issues. Some good , some blah . Dollar cost averaging into financials has always payed off for me. Why not, you get paid to wait. TD just came out with a preferred at 5.6%
I have bought some smaller issues that show strong long term organic growth like WES on the TSX. Do your own DD but I like what I see on the balance sheet. But... I don't want to get accused of touting. I built a strong position in golds over the past two years and am quite happy with the performance thusfar. I agree with the guys who see a $50 downside and a $300 upside this year.
I am like everyone a bit pissed at how our junior markets have been caught up in the panic and undue selling. These indexes are selling for pennies on the dollar in my opinion. But, the charts and sentiment are still negative. Still , the macro for resources is brilliant.
George Ure of Urban Survival .Com agrees with me that the market have been hit by a coordinated inside crush. Brian Acker alluded to the same on  BNN two weeks ago. As we all know printing paper at 34% in the past 12 months is hugely inflationary and irregardless of how hard our government try to kill commodities with shorts the fact is certain that monetizing debt is inflationary and the governments intervention will fail. This say some is very good for commodity pricing going forward. Anyone who has panic sold is just not seeing the big picture, in my opinion.
I'm prepared to hold a core position knowing that surprises at this level are going to be to the upside.
I have beeen following Merv's Uranium index. he's a doing a good job charting the Uranium space. Check him out. I think it's " technically speaking with merv". The big picture for Uranium is solid. It is the perception of risk coupled with the institutional internals that have sold Uranium down. It's a baby with the bath water story. I hold core positions and am waiting to add not contemplating selling. Risk management, so that no part of your portfolio can completley overwhem any other in the event of cataclysm. Short term boring, long term , quite productive. Plus, this is why I never get margin calls.

[megadeth]

Punter, welcome back!

Do tell us about your travels.  I think we all need a good break here, and an interesting story about travelling will do us all good.

Bought MGA.to near the close today, at 1.93.  Like the rest of the U's, it looks oversold and is at 30 RSI.

[punter]

I was in the Orient, mostly Singapore but spent some time in Hong Kong and Bangkok. The weather was very pleasent. I posted Tecnically uranium with Merv on the general discussions. Merv is doing a good job charting the U market. Todays big upside will have to settle before we can differentiate it from the Dead cat bounce many are calling for. Technical rallies can be deadly, so we'll see.