For GT Blog July 02, 2009

I hope many of you enjoyed the great March – June advance in the world equity markets. OK so now we go through a period of confusion as the market has to answer some legitimate questions

Is this a bear market rally? Will we have a re-test of the October-March lows? Then again perhaps this a bull market and we should hang in there for more highs, Perhaps you sold in May and went away with a view to buy back in the fall – well I think we have a new bull but I also think reducing here is a good idea – but – reduce what?

I would reduce a group of stocks that ALL of the experts love to own. This group gets more business press than all other stock groups combined – this stock group is a Canadian champion – this is a must-own group

Well the group is energy – yes I would bail out of these oil stocks now – especially the tar sands participants – look at the chart – clearly the stocks are not responding to any rise in crude prices – a bad omen – what happens if crude falls?

Crude vs the SPDR Energy ETF – (XLE) – US dollars