Presentation on theme: "Where to Look for Buying Opportunities if a Big Drop Occurs Daryl Montgomery June 29, 2011 Copyright 2011, All Rights Reserved The contents of this presentation."— Presentation transcript:
Where to Look for Buying Opportunities if a Big Drop Occurs Daryl Montgomery June 29, 2011 Copyright 2011, All Rights Reserved The contents of this presentation are not intended as a recommendation to buy or sell any security.
Background Material for Charts Moving Averages – 50-day, 200-day Bollinger Bands – plus or minus 2 standard deviations from a ~20-unit moving average. RSI – relative strength index, 80-overbought, 20 oversold, 50 divides bearish and bullish MACD – moving average convergence divergence, zero divide bullish bearish, peak and bottom numbers variable DMI – Directional Movement Index, +DI (blue), -DI (red) and trend line (black).
What to Buy in a Big Drop In general, whatever goes down the most or is most off of its previous high. Things which have been depressed for a while: natural gas, interest rates, solar, uranium, and silver. If oil has a drop to around $80, grab it. Consider gold miners, particularly junior miners. Look at lithium, rare earth metals and base metals. Emerging market ETFs including small countries. On any drop, you can always buy the Swiss franc, Australian and New Zealand dollars, and gold.
State of the Market
Volatility Index VIX: Three-Years Weekly 10, 40-Week Moving Averages and RSI, DMI, MACD