The arguement

Gold at a support level

It is a cliché to describe stock market movements as an argument between those who think shares are undervalued and those who think they are overpriced - the bulls and the bears. For the past few days the bears have been in the ascendant and there has been a 7% fall in the shares on the Dow Jones and a similar fall on the FTSE. Several important support  levels have been breached and there is little in the way of support until we reach 10800 on the Dow. This does not mean we will get there but the situation is worrying. Especially for me since I have bought shares in the UK and in the US. They are looking sickly to say the least.

I have jumped the gun and have the grizzly task of choosing between cutting my losses or holding on in hope. So far hope prevails. I have chosen good shares that have been beaten down in price and I feel confident that the UK ones will soar once the market perks up. The US ones have been picked on a rather less sound basis  and therefore should be replaced by better rebound candidates. So I must decide whether this break of support is real or false. If it is real I should cut my losses and wait for the rebound from a lower level. If it is a false breakout I should soon recoup my losses. My inclination is to hold on but not for much longer.

The continuing fall in gold and silver are also making my portfolio look sickly. But there again I feel confident that a rebound will occur. This is not a time when prediction is easy. The only price that is near a support level is gold. All the other prices are floating and could go either way.

Present portfolio position: Gold and Silver 24%, Commodity 5%, Equities 25%, Cash 46%.

Happy Thanksgiving