August 30 2010                                                                 Weekly issue nr 77 
Dsi model portfolio: from start (febr 09 2009) +43.54%    SP500 +22.55%    nasdaq + 35.29% (see full newsletter-link below-) 
                    This newsletter reflects our opinion on, and strategy in the markets and is no investment advice in any way

General market situation: The expected rebound happened last friday, with a rather strong climb of most indexes. Markets are in a very oversold position for now.This makes us expect a further iincrease of stock prices the days ahead. Buying and selling power are in balance.
We don't see very much potential at the upside, but on the other hand we don't see much risk at the downside. A sideward movement of the markets is the most likely scenario, be it with high volatility. As a conclusion we believe limited positions in high quality stocks are a responsible strategy.

China: Oversold situation as well, the chart pattern being quite different. We still are in a medium term uptrend , started the first days of july., altough losing momentum. We would keep positions , but don't buy yet.

Dollar versus Euro:  Dollar is losing momentum in his medium term uptrend towards euro .As euro investors we don't buy extra dollar positions. On the other hand we strongly believe in a diversification ( f.i. Swiss francs , eventually dollars), seen the still uncertain position of many Eurozone countries.

Base metals:  Most base metals consolidated last week. We expect a limited rebound the days ahead. We don't see much potential the first weeks So far we still avoid positions.

Oil price: Same story as for other values; a moderate price rebound, We expect prices to remain in a trading zone around actual levells. So far we don't see much profit in oil-positions, and stay at the sideline.

Gold: In uncertain times, and undecided stock markets, gold plays it role as safe heaven, After last weeks climb we still expect a
( limited) correction. This could be an excellent entry point.