Since mid April the market has been variable. The UK probably more down and the US has stayed level. Traditionally, May is a poor month for shares.
I notice that new highs are hard to find and many shares seem to be slowly dropping in value. However, the UK market could turn upwards, probably for about the next few weeks, and the US market is hovering wondering which way to go.
I remain with an almost equal number of shorts (that is shares that I think are going to go down) and longs (shares that I think are going to go up). This worked reasonably well over the last few weeks with good gains in Green Mountain Coffee (GMRC) long and Thomas Cook Group (TCG) and Carnival (CCL) both short. Each I have now sold.
Rightmove (RMV) and Playtech (PTEC) have been good climbers over the last few days and I still hold them.
For the next few weeks I like Advanced Medical Solutions (AMS) long.
On the lower priced shares Globo (GBO), one of our long time bets, has recently made a move up.
Something different to consider is Quindell (QPP). Quindell only has 4-years of figures and was considered a fast grower. Price climbed rapidly to 44 pence. However, targeted by an (possible rogue) internet report. The price dropped to about 20 pence. The figures I have for this company are good. Also many of its directors bought shares at about 21 pence.
Of course, I cannot predict the market although I personally feel that a large drop is a real probability. Until recently it seemed hard to make profits from shorts. But lately that has changed and good profits can be now made from these. Or maybe I’m just now choosing better companies!