Elite Inside Trader

The markets finished last week up by more than 1.5%, and trading continued to be effected by the tragic events that have occurred both in Japan and in the Middle East.  Volatility returned as the Volatility Index (VIX) hit new highs during the week before settling back down.  We recommend keeping a close look out for further news pertaining to the Middle East and Japan as we anticipate even the slightest bit of activity to influence the direction in which the markets may move.

The biggest surprise of the week was the US Dollar.  Just when it looked like the US Dollar would rally as investors took risk off the table in an attempt to safeguard  their cash until there was more certainty, the dollar actually fell.  The US Dollar now looks to be at a critical point that could fall even further to the downside.  Technical charts look very bearish.

Gold seems to be making another run towards its recent high, and although we’ve been looking to add Gold to our portfolio we’ve instead been investing in Silver (SLV) for the last six months.  We’ve experienced substantial growth with our Silver pick, but now it seems that Gold may be the better play as it has room to move to the upside.  We’ll keep an eye on it this week as we expect it to hit new highs.

In this week’s trading I added shares to my positions in China Mobile (CHL) at $45.11 and Discover Financial Services (DFS) at $21.46.  Neither were big moves as I was hoping for more of a pullback.  I may live to regret my Discover purchase as American Express (AXP) may be the better play right now.  Discover reports earnings on Tuesday and the stock has had an excellent run up going into them.  If expectations aren’t met, then the stock could sell off.

The weeks most interesting stocks may be some uranium companies.  UUU.TO, ERA.AX.

Disclosure: Author, Kevin D. Monaghan, Senior Partner at Elite Investment Group, is long DFS, CHL, SLV.

IMPORTANT NOTICE: "Any information we give you is not our recommendation or advice to take (or not to take) any particular course of action in relation to your investments. You should take your own independent advice based on your specific circumstances."

Tags: American Express, AXP, China Mobile, CHL, DFS, Discover Card, Discover Financial Services, ERA.AX, Gold, Shares, Silver, SLV, Stocks, UUU.TO