Even in the strongest bull markets, it pays to be selective. The chart below shows g0ld—it is clearly doing well.
In the good old days, buying anything that had even the vaguest connection to the sector would have been sufficient. However, things have changed. To illustrate this I ran a simple scan over my custom folder containing 162 stocks that are in some way associated with the magic yellow metal. Of those 162 some 83 were above their 200-day moving average. The table of those who passed this test can be seen below.
With regard to speculative vehicles, this sector of the market used to be the most important game in town but the local market presents a wider range of dodgy things for trades to get involved with. This along with the increasing sophistication of producers in the way they hedge means that this sector is not the easy hunting ground it once was.
This does not mean that some stocks have not done well. The table below shows the top ten one-year league table of local stocks.
However, this list also illustrates an additional issue for traders – some of these stocks are very small and therefore you can attribute much of their movement to either noise, random behaviour or pump and dump schemes.
