Category: OSE

We started taking profit a tad early, but can't really say that reducing risk and reallocating into defensive was a move I'm disappointing with. The PCCs have gotten some purchase pressure and gone up along with health care.

Technically, however, we're now getting bearish and expect a correction of the market to be imminent.

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We observe a fibonacci retractment level around 315 that we see as the upper bound of the turning point. We crossed the 255 day moving average today and expect the correction to start in this area (301-315). Target for correction is adjusted upwards since may 10th due to market conditions with new target range 255-270 where we see a nice meeting point of fibonacci levels, 45 daily moving average as well as 200 daily moving average.

OSEBX is now at 277.34 with OBX at 249.54 (locking in 2.7 percent from the buyback 14th of may). The volume at the time of writing is 2,872 million NOK and the momentum upwards with that seems to have faded. We revert back to the initial strategy from the 10th of may. Positioning ourselves defensively in primary capital certificates and focusing on stockpicking. Things can obviously continue upwards, however, I'm comfortable taking the profit and reducing risks at this point and rather buy back later if I turn out wrong, giving up a slight profit.

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