2010 offered up a very good performance with respect to the GMR portfolios and various GMR Trader picks. I know exceedingly well that it is often difficult to maintain a steady hand and not to sell early and therefore miss profits or wait to sell too late, and capture losses. Believe me, I know—but I learned over 10 yrs. :-) The current group of GMR Traders is a diverse group and therefore likely diverse risk appetites. Hence every recommendation may not be applicable.

Therefore I will label two types, maybe three : Bluish Chips (long term value, less volatile). Reddish Chips (value, but likely quite volatile). I made most of my money on Red Chips. Because from all the research I do I don't mind to ride out volatile bouts in the markets for even months at a time, maybe a year. In fact, the old adage is : to make a fortune you must pile into a sector and ride it out. To keep a fortune one must diversify.

AT THIS POINT I am still into fortune making for myself. For this document I will provide
both Blue and Red chips.

Admittedly right now, things look very tenuous in the markets. It is nigh impossible to get a “good” reading where the markets are going. Everything just seems a big mess—really. I have been struggling to “read” the minutiae of indicators. And so have all the “market experts” - As Moulder, in the X-Files, “I want to Believe” we are going higher, but my intuition tells me we may be in for a 5-10% consolidation. Majority 90% of stocks are now over their 200 dma which is quite unprecedented. On top, there are jitters all over the Emerging Markets. There is no real safe rock to hide under, if indeed a correction is coming. I will take it as an entry point. Brent Oil is over $100 while WTIC is like 87$. A large divergence and likely not sustainable. They will consolidate and merge …. But at what level ? And Wikileaks came out that Saudi Arabia has been overestimating their oil reserves by massively 40%. If this is true, get ready. And meanwhile Bernanke at the Fed states we are still in a “fragile” economy with low inflation expectations… yet commodities remain elevated in price. In summary, nobody knows anything about where the markets are headed short term. But longer term I remain a “commodity guy” - because it is the only sector which is truly needed for food,
energy, heating, driving, etc.

Copper has done extremely well since mid 2010. Time for consolidation ? The odds favour it. Which means junior-ish equities like XXXXXXXX tend to react in fits and pangs. Just a thought. We are sort of at the higher end of the trend channel thus I color my remarks to the downside for copper until evidence to the contrary. Low side is 4.2000 I will take every pullback as a buying opportunity on the copper stocks. By the way, I ALWAYS take the view “I know nothing” and simply watch the charts—with all the “noise” of politics, central banks, riots, uprisings, bombs, expert blurbs, etc. it becomes impossible to know the shortest of market directions—but that is not our goal. Our goal is longer term profitability.

A lot more technical charts, stock recommendations, graphics follow for subscribers. HERE
--> Remember we made 112.000 $ in 2010 not by "trading" but by constant research and not panicking.