In VRI, 15 November 2007, Maintain Perspective, we recommended shorting Aluminum Corp of China as a hedge to our exposure to industrial metals markets.

Those who took the advice and entered the trade at around USD56 should now lower stops to USD51. This move will lock in a 20 percent gain for now.

The stock is already down 33 percent since the short was recommended. We’re using a loose stop because this is a hedging position to a long-only portfolio and isn’t treated as a stand-alone trade.

Gold

Any weakness (and it can correct all the way to USD800) in gold should be seen as a buying opportunity for our recommended positions: Goldcorp (NYSE: GG), Lihir Gold (OTC: LIHR) and streetTRACKS Gold Trust (NYSE: GLD). The near-term picture is volatile to say the least. But the yellow metal is still in a secular bull market that commenced in 1999 and has a long way to run.