Chief Editor
This last week has been another one of retreat – a very orderly retracement however – what better would you want? The overall daily trend is still up but I must say some momentum has been lost and I would marginally modify my view about how far this rally might take us – at least in the medium term.

The “weekly” trend is still down – but there again it takes a lot to change a weekly trend and by the time it has turned a lot of the medium term upside has already taken place. If you are a long-term investor and preservation of capital is important to you then the weekly trend is probably critical to you. Everyone has different goals, risk/reward threshold etc.,

Even though we are experiencing a benign retracement there are still opportunities to buy stocks that will move against the trend. Remember I spoke in a previous issue (Issue #3) about sectors and counter cyclical stock selection – maybe worthwhile to revisit that article?

Again many thanks for your numerous emails. I am sure you will understand we cannot provide lengthy responses, as we like to at least answer all emails within the week of receipt. Where a comment or question is relevant to a wide cross section of our readership we will try and cover the topic in a forthcoming issue. One such question is covered in the article "… what is the situation with BHP" above.

Enjoy the ride!

Good trading

Tom Scollon