JSE Stock Picks

Well markets just keep on going up but the JSE just seems flat. I would be very careful trading long at the moment as the old myth sell in May and go away is close. If the myth is around the traders will most likely follow the myth. This myth did not play out last year but it looks like it could this year. Fundamentally the markets have so much going on around them that could easily cause a pull back as well as the fact that they are just simply expensive. Technically the market looks like its at the top, but is it? If it breaks upwards it will make new highs and you would have missed out on some great trades but I doubt it will. I expect the markets will pull back up to 10% before moving on upwards and I expect it will happen in May. It is now a good time to start looking for short trades, but also short term with a view to getting into some nice long positions at the end of the pull back until the end of the year.Resource stocks are due for a pull back as are some of the retail stocks. Be very careful of short trades in the retail sector as it may bite you with inflation around the corner. I will list my trade ideas for this period within the next week but for the time being I am long on Bidvest, Northam Platinum and short on Harmony Gold. One can still trade NHM & HAR but forget BVT as the long position is almost at its end.