Stop Losses: He doesn’t use stop orders. You can get stopped out on a sudden, quick, short drop. He wants to see if the stock breaks various moving averages and trend lines.
Canadian Trusts: He owns a lot in his fund because even when they become taxable, they still offer some of the highest yields in the world. Will go higher as long as FED keeps interest rates low.
Stocks have been lagging the commodities. Juniors are lagging large caps. If the larger stocks deliver the earnings, they will go up. They might well under perform the commodities because they did last time.
ETF of small cap gold stocks or US bank like CitiGroup (C-N)? Banks will take time to work out and gold is on a roll right now so an ETF in the shorter term will do better. CitiGroup made lots of money in their investment banking and other businesses but have actually downsized so quality of earnings will probably be better.
Market has been rising since August but people have now come into a profit-taking mood. Cyclic research suggests that corrections will probably be over by mid-December and then we could go again. We are in a Bull market until possibly Sept 2011 or later.
Gold. Original Point Figure target originally 2, 1,500 and 2000. Then you start looking at how the tempo goes. If it goes slowly and doesn’t reach the point where everybody wants to be there, then you’ll probably go to 2000. At this stage it has been going very steeply and there is a strong possibility that it’ll go to 1500 and not much higher.
Charting. For weekly charts he uses a 10-week and 40-week moving average, not exponential, regular. For a daily chart he uses a 21, 50 and 200. You watch for the crossovers of all the moving averages.
Korea. If the current situation continues and escalates, this will create volatility so you have to pick your spots and look for individual securities. Doesn’t expect oil prices will fluctuate very much.
My apologies. Comments for Market Call Tonight for Nov 22nd was shown as Charles Oliver. This should have been Michael Smedley. Got the wrong tape. My apologies to Michael and my thanks to Colin Morris for pointing this out. I will redo this. Comments will be dated Nov 22 so you won’t get Michaels Top Picks in your e-mail.
From Labour day, markets in the western world have been doing well. Commodities are always really volatile. We are at a point right now where world economies have, at worst, stabilized. The demand now is in commodities. He is not predicating his call on commodities on the US dollar. It is an emerging market thing. For people who have RESPs, you have to put money in by year-end to get the grant for this year.