Investment tips for the next week

Judging by the fact that the equities market declined 60 or so points after the Federal Reserve announcement, I feel there is no good news left for the market to rally on. I watched the market closely today, in particular the VIX Index which gauges volatility in the market.

The VIX index finished 1.79% higher. This is a sure sign that fear is starting to enter into equities market. This volatility could trigger an even bigger sell off in equities market tomorrow and for the rest of the week.
Earnings season continues to be sluggish at best, the employment figures were extremely disappointing. The housing market here in the USA is stalling and the global set of housing bubbles appear to be frothy and
ready to pop.

Right now I think the price of silver  is about to move up over $23.50 and possibly testing $24. For all those that have access to an Australian Stock Exchange Trading account I would be looking at a company called
Cobar Consolidated Resources or CCU code on the ASX. CCU is currently trading at 14c a share and is worth a little play as I can see upside to at least 18c if the silver price breaks through the $24.50 price. This is a distinct possibility as I feel investors may first seek to shop for a less expensive way to gain exposure to precious metals before moving into gold.

I would also suggest NCM and SLR for Australian investors. I have mentioned my reasoning for these two as long term investments and are two stocks that should be in ever investors portfolio. Currently NCM is
trading at $10.47 and SLR is trading 77c.

For those investing in the USA I feel investors should continue buying ABX (Barrick Gold).

Another stock I still see some upside in and I have mentioned this to some friends over here in the USA already is JC Penny or JCP on the USA stock Market.  I am a little more reluctant to signal a strong buy on JCP as the stock has already seen a rally since I tipped it at $6.90. For those that have twitter you can follow me @carneycapital .

If you follow me you can no doubt track my JCP tip from last week where I signaled it was a buy at $6.90. Today JCP closed at $7.60 up more than 11% since my buy signal. To buy JC Penny you have to buy the story. The company was experiencing some major cash-flow issues and raised some capital through a private placement. The cash-flow the placement generated in addition to the inventory the company has at its disposal, will give management and marketing time to get back to what JC Penny used to be good at; which was sales and turnover. The brand got away from its core business and lost focus and let go of the niche that made it so successful. The cash raised in the private placement in addition to a regrouped marketing focus will give JC Penny time to restructure and re-energize.

Christmas is coming up and although I am not a fan of the retail sector right now, in fact I hate it, I believe JC Penny has been oversold and at the price of $7.60 offers upside of possibly 50% with downside risk
limited to perhaps 10-12%.

Hope all of this helps in a time where trading is more about risk management than profiteering! My advice is to keep your exposure to the equity markets limited, hold cash and then when the correction comes we will be there ready to pounce!

As per previous blog entries, if you liked this blog pass it on to anyone you feel may be interested and follow me on twitter @carneycapital where you will receive updated commentary and market tips as opportunities
present themselves

There will be another blog coming over the weekend to assess the market tips and reflect on the trading week that was.