The FTSE is enjoying similar support, even though its pattern does not demonstrate such a powerful move to the upside. It has only managed 6.5% since the low. The difference is that although the UK has been showing a better economic improvement, that has meant strong signals that an interest rate rise is in the offing.
My big problem is clear. I continue to see trouble ahead (without moonlight or music). And while I have that fear in my bones I am reluctant to take advantage of the market's strength. That has been my trouble all along. and it means that my portfolio is unable to make progress. I have done well enough since the beginning of last November when my luck turned a corner. I have made 7.4% since then while the FTSE has made no progress at all. And I have almost kept up with the DOW which is 8% higher.
But this is not good enough and I have been struggling through June. That was partly because of that foray into the US market in the first week followed by my quick exit. It is partly because I banked GVC's dividend in May and have to wait till August for the next one. And lack of news from GVC means that the upward momentum has stalled (even at today's price it yields 8.4%).
So I just have those newly bought gold shares. They gave me a fright a couple of days ago. But they have hung in and yesterday they recovered despite weakness in gold and silver prices.
Mr Market seems to have decided that conflict in the Middle East is no threat to oil supplies and the oil price spike has been short lived. Looking at the chart it seems to sit comfortably inside the pennant that has been forming since April 2011. It could fall another 3-4% before it meets support.
So I have no plan other than to hold gold and silver miners and GVC unless I see another short term opportunity. I am looking hard and will let you know if I find anything.
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