[miningmx.com] — THE effectiveness of the Hasenfuss Reverse Indicator (HRI) will now undergo a true test. I have – only this fine Tuesday morning – bailed out of my positions in Anglo American, Anglo Platinum and BHP Billiton.
I reckoned it would be prudent to bank roughly 15% gains over two days for these commodity heavyweights. After all, in this fickle market we could see resources retreating just as fast.
I think seeing the HRI portfolio creeping into the black – albeit temporarily – was a defining moment. For me any small victory in commodity stock picking is a big one.
Now if the HRI really holds a “reverse Midas touch” (as my colleagues so strongly suspect) then we shall see an extended rally in commodity stocks – a development that will leave me cursing my cowardly capitulation.
Naturally I’m hoping the market continues to behave in irrational fashion – allowing me an opportunity to buy back these excellent counters at attractive prices some time in the not too distant future.
At least the composition of my remaining portfolio will please our blog penning primate, Market Monkey, who cheekily suggested I no longer had a “penchant for dodgy small cap shares”. I don’t know about that, but, hell, I am disappointed that Merafe Resources has not shifted gear with the heavyweights.
Sans the trio of heavyweights the HRI portfolio does take on rather a tatty aspect – especially in terms of performance to date. At least there was some comfort in terms of income flows with Sallies Debentures declaring a half-year interest payment of 2,5c/debenture on Monday.
THE HRI PORTFOLIO as at November 25:
SHARE |
AVERAGE BUY IN PRICE | %OF PORTFOLIO |
| ANDULELAINVESTMENTHOLDINGS: | 17c | 13,6% |
| ANGLOAMERICAN: | — | — |
| ANGLOPLATINUM: | — | — |
| BHPBILLITON: | — | — |
| MERAFERESOURCES: | 75c | 19,5% |
| SALLIESDEBENTURES: | 52c | 21,5% |
| SALLIES: | — | — |
| VILLAGEMAINREEF: | 160c | 45,4% |
