Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Bargain Investments to Buy on the Next Market Correction

Stock-Markets / Investing 2009 May 11, 2009 - 01:17 AM GMT

By: Uncommon_Wisdom


Best Financial Markets Analysis ArticleSean Broderick writes: The market rally has gone on a lot longer than I thought it would. In fact, there are some signs of real strength — signs that this rally has further to run. Does that mean the big, bad bear is dead? Don’t pin your hopes on it. There are fundamental problems that our economy will be working out for years to come.

But if past recessions and depressions teach us anything, you can have long rallies in the context of a bigger bear market.

From 1929 to 1933, we saw a massive cram-down in the Dow Jones Industrial Average, with declines of 45.4 percent … 49.4 percent … and 54.9 percent. But in the same market, we also saw big rallies of 39.3 percent … 52.2 percent … even 100.7 percent!

One of those rallies — from October 1929 to April 1930 — lasted FIVE months and racked up a 52.2 percent gain. And that was before the Depression really got rolling.

My point is, nothing travels in a straight line, and we’ll see big zigs and zags up and down.

Three Investments To Consider When The Market Pulls Back

Here are my ideas for three things to buy on the next zag down — because they should do very well on the next zig up!

So why not add these bargains now? Because the market is overbought right now and I wouldn’t be surprised to see a pullback. Take a look at this daily chart of the S&P 500 Depository Receipts (SPY), which tracks the leading U.S. stock index.

The S&P 500 is channeling higher — and looks ready for a pullback.

You can see that the S&P 500 is channeling higher. It is testing the top of its channel. While we could see a breakout, a pullback is likely. You can see this chart updated every day by pointing your web browser here:

If and when the S&P 500 pulls back to the bottom of its channel, here’s what I want to buy …

Pick #1 — Copper


As you can see, copper has been running rings around both gold and the S&P 500, and is up 55 percent since the beginning of the year.

What is driving copper? Copper inventories held in the London Metal Exchange are falling — down for three weeks in a row at the end of last week, the longest slide in inventories since February 2008.

Stockpiles held in Singapore and South Korea, the closest locations to China, were the lowest since 2005. With inventories down, the trend in prices is definitely up.

Good ways to play copper include copper producers such as Freeport McMoRan Copper & Gold (FCX) and Southern Copper (PCU). Also, the PowerShares DB Base Metals (DBB) fund, which tracks a basket of aluminum, zinc and copper should also ride this wave.

Pick #2 — China


While the S&P 500 recently scraped its way back to breakeven for the year, the iShares FTSE/Xinhua 25 (FXI) is up 20 percent. Nice!

China seems to be experiencing a V-shaped recovery. China’s official purchasing managers’ index (PMI) for March rose from 49.0 in February to 52.4. The Index compared with a record low of 38.8 plumbed in November and is the strongest since May 2008. A reading over 50 indicates expansion in the manufacturing sector. The FXI is a good way to play this move.

Pick #3 — Agriculture Stocks

Moo broke our to the upside from an inverse H&S pattern ...

Looking at this chart of the Market Vectors Agribusiness ETF (MOO). While the pattern is imperfect — many patterns are — it sure looks like MOO formed an inverse head-and-shoulders pattern and then broke through the “neckline” to the upside.

The breakout came on high volume — another bullish sign. This breakout gives us a minimum target of 38.5. I expect we’ll see a pullback in MOO before it really takes off — an opportunity that we can use to get long.

Why is agriculture doing better? People have to eat, and worldwide demand continues for grain despite the swine flu pandemic.

After suffering big losses last year, the agriculture sector looks ready for a comeback. And MOO is loaded with stocks such as Potash (POT), Syngenta (SYT), Monsanto (MON), Mosaic (MOS), and more.

These funds helped lead the market in its recent rally, and after a pullback, they will likely do so again. That makes them good additions to your portfolio. Just make sure you get that pullback price for the biggest profit potential

And in this wild and crazy market, there are two important things you MUST do …

  1. Use a protective stop in case this rally gives up the ghost and the bear rears its ugly head again.
  2. Use a profit target and don’t be greedy — bag those gains and get out.

Yours for trading profits,


P.S. If the funds mentioned in this article interest you, you’ll be interested in Red-Hot Commodity ETFs. Sign up now — CLICK HERE.

Also, remember to check out my daily updates at

This investment news is brought to you by Uncommon Wisdom. Uncommon Wisdom is a free daily investment newsletter from Weiss Research analysts offering the latest investing news and financial insights for the stock market, precious metals, natural resources, Asian and South American markets. From time to time, the authors of Uncommon Wisdom also cover other topics they feel can contribute to making you healthy, wealthy and wise. To view archives or subscribe, visit

Uncommon Wisdom Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in