JSE STOCK PICKS

All those who did not short sell SHP & IPL previously they are still great opportunities to short at these levels. IPL anything above 106 & if you can get in above 107 all the better. SHP has already started to fall from the 98 levels but could have a support at 95, if it breaks through this it could go below 90. Note my previous posts. The markets are not steady at the moment & the slightest news is moving them up & down but although the bulls are trying to get control the overall fundamentals are still very bearish and as was seen this week the slightest bad news will send the markets down at speed. We are still very bearish on the markets and expect more downside in the short term. A short on the EUR/JPY can be considered above 113 with a target of 106. Have a good week trading.

JSE STOCK PICKS

This week we look to short sell SHP ( shoprite ). Fundamentally SHP will be ex dividend & should start to track back. Technically SHP is way oversold & looking very expensive with a PE over 20 & all the indicators in an oversold position.
Best entry: R95.00
Stop Loss: R100.00
1st Target: R88.00

2nd Target R80.00

JSE Stock Picks

We short sell IPL at 10600. All technical indicators are pointing to IPL being overbought. IPL has hit resistance at 10600 and we expect a retractment to 9300. Note September is renowned for being bearish and a pull back can be expected sooner rather than later. Fundamentally the car manufacturers are on strike again and that could also affect IPL.
Best Entry:  10600
Stop Loss:  11000
Target:        9300

3 September 2010
Short Sell Tiger brands ( TBS ) resistence hit at 18100 expect downside back to 17200.
Best entry: R18100
Stop Loss: R19100
Target:       R17200