This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Some of the stocks that started the day as much as 40% lower – the likes of Travis Perkins (TPK) and Taylor Wimpey (TW) – are now only down 25%. BP (BP) began the day down 10%. Its shares are now up 2% on the day. I could go on but suffice to say that days like this are one in a million. Luckily, the fallout looks set to last a week or more as markets adjust to this new paradigm.
With the UK 100 still 140pts from where it closed on the 23rd June and some of the hardest hit stocks still looking at >10% moves to get back to yesterday’s closing levels, we’re looking at the potential for next week to deliver yet more double digit recoveries. And that just gets us back to breakeven! Of course, things change minute by minute, so why not let us be an extra set of sensory organs for you – access our no-nonsense daily research and trade ideas here.
Indeed, if this is just a dead cat bounce, then wow, what a bounce! And if markets do turn lower again then you should note that we could be set for, well, more double digit gains – this time in the precious metals miners such as Randgold Resources (RRS) and Fresnillo (FRES), both of which proved their worth as safe havens this morning when the markets were in dire straights.
Whatever happens, what’s happened today has set markets up to deliver amazing short term opportunities for at least another day – maybe a week. in fact, we’ve got an exclusive report for you right here on the subject. It won’t happen again for a long time. Don’t sit this one out. Get involved now!
Have a great weekend, and let’s get ready for Monday.
John Truong, Senior Trader (24 June)
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