The breakdown in the market over the past few weeks has done some technical damage to the market averages. Can they be repaired ? I think so. I still believe that some news item (US stops adding to Petroleum Reserves) will be the catalyst for the markets to gap higher.
Longer term, and I've said this before, we will in all probability fall back into the claws of a bear market. I am convinced that any pullback in the price of oil, commodities and metals will be temporary. During the anticipated rally, we need to position ourselves in the sectors of the market that will reap the benefits of a commodity bull market.
As a heads up, I am currently looking at the following commodity driven stocks : ALRP, AA, AL, BHP, and NUE. If we get a pullback in these stocks, I may add a few to the "Big Picture" portfolio. The major integrated oils still look too pricy at these levels, I would look at companies like SLB, as well as some natural gas plays in the OIH.
I will continue looking for new positions to add in the Healthcare, Staples, and Energy sectors as well.
