August Update no 2

The very volatile trading conditions were caused by the USA downgrade of their credit  rating and then the knock on effect of the Euozone difficulties.

The over sold condition persisted longer than could be anticipated.Shares on the whole have retracted to more reasonable levels.

The market is still oversold.Our Rand weakened to around 7.27 to the Dollar,while in the long run is good for resource counters that export .

How ever in the short term the downward movement was too severe and shares are likely to recover as the Rand strengthens.If it goes below R7 to the Dollar we are like to see a stronger upward movement.

0VERSOLD and just above 20 %and showing a strong recovery are:

ACL

AGL

AMS

BIL

EXX

IMP

SAB

SOL

KIO HAS JUST Payed ITS DIVIDEND AND IS LIKELY TO BE A LAGGARD FOR SOME TIME TO COME

On the TOPI there seems to be no knock out call warrant and I have been forced to take an ordinary vanilla warrant,namely TOPSBF which 1.9% time decay The TOPI IS ALSO OVERSOLD

STOP PRESS ;TODAY A KNOCKOUT WARRANT HAS BEEN MADE AVAILABLE   26/8/2011 NAMELY      TOPSKK

Along the way up there might be sudden reversals as the market is very nervous so always keep your stop-losses in place