Nasty shake or summer crash?

PUBLISHED: 21 May 2012 @ 20:05 | Comments (0) | More info about Clem Chambers

This week will decide if this is the crash of the summer or the current move is just a nasty shake.

I’m sitting on a little Lamprel, torn between taking a quick 25% profit and holding it for the long term and perhaps a 100% or more.

The trouble with fast 20% profits is they are rare, so a long term hold for 100% is mostly a sensible application of capital. It is of course down to risk.

There have been too many dodgy collapses since 2008 with companies sabotaged by the management so they can pillage the ruins. This has to be in the back of my mind in all instances of this kind of sudden collapse. The news simply doesn’t warrant the fall, so is there something I don’t know?

So I’ll dither for a bit. I have a short term sell target of 150p, if it reaches it I will likely bail. If it grinds slowly upwards I’ll flip into long term mode and be looking for 200p.

There is probably some kind of optimal curve for this but I’m not in the mood to do the research on it. This week will probably set the scene all on its own.

The scenes of the G8 watching soccer instead of solving the Euro crisis just about sums it up for me. As Goldmans might say; Muppets!

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