Rapid move into equities as Dow rally continues

Dow carries on upward

The weather has closed in but the market continues to climb. The Dow has now broken that second resistance level and continues powerfully upward. We must maintain vigilance but enjoy the upward run as it develops. I begin to wonder if we have slipped into the autumn/winter rally that is a feature of most years. Wishful thinking I know, but it usually happens so why not this year.

My portfolio has been transformed. I have ditched my gold and silver. I was a bit precipitous and I have bought some back again. If only we could predict the future. But the other main change has been that I have piled into equities.

I use VectorVest as I explained the other day - follow the link for an explanation of how it works. I pick out shares that are recommended by their best bottom fishing filters. These are basically decent shares that have been badly beaten down. I gave an example on Tuesday. I have to work hard to find the best filters for each market. But then I pick out the shares which have low PE ratios and buy the resulting candidates in equal quantities. I have done this for the US and the UK and plan to do the same for Hong Kong overnight.

The shares I picked today for the UK market were RSW GFS IAP HOME and WIN. They are mostly doing well and the ones I bought on Friday are generally showing excellent profits. In the US my picks (including one bought yesterday) are FSLR IPSU DQ GTAT CIS NFS and SODA. I ditched EK yesterday. It was going nowhere fast. Again returns are excellent. STP is up 37% since Friday and CIS  is up 10% since I bought it this morning.

So my new portfolio structure is:  Precious metals 8% commodities 5% equities 45% cash 42%