A slight tick up in sentiment

A slight tick up in sentiment

Many of the charts are losing downwards momentum, with falls giving way to more lateral movements. This might be the start of a quieter sideways period due to lack of interest, or it might just be a pause because the recent bout of selling has been exhausted - for the time being. Optimists might see it as as turning point but it is too early to know.

As strange as it may be to suggest it, the falls over the last 6-9 months should not be seen as game changing. Yes, they have been painful, but it is more a case of money being deployed elsewhere rather that fundamental problems. The game is not over; it is just an extended recess. We are waiting for a reason to be buying again, rather than buying just because share prices are weak. This bear market in mining stocks just like a drought. We know it will end, but we just don’t know when.

There are plenty of good stories out there, in what should be seen as a buyers market, but only the brave are buying. From my own perspective I am happy to accumulate shares in stocks that are clearly oversold. I don’t know when they will turn around, but in the meantime I’m buying at the right price.