Markets. The TSX has had a big run, which was powered by the 3 big ones, financial, energy and materials. We have just had a correction and he wouldn’t worry about it. It is a normal, healthy correction. The long-term chart showed a low in 2008/2009, a low in 2012 and another one this year. Each low is higher, and now it is trying to break out. A peak occurred in 2008 and a double one occurred in 2015, which are called bull traps. He is sure the low of 11,500 will not be violated.

If you did a comparison against a broad index, this is weaker than the index. It had a corrective period in 2008 and has taken a long time to get back up. Also, the upward trend line has been violated.

The sector has had quite a rebound, and he thinks it is like the canary in the mineshaft. It led on the way down and is now trying to catch up. He would Buy this, but would wait for a bit of a pullback to $3.89.

Chart shows a very strong upward trend since 2009. It recently hit a new 52 week high. This is in a good sector and it has growth.

This has fallen below the 50 day moving average as well as the 200 day. It has had 2 corrective periods. Thinks that is pretty well done and it is trying to build some kind of a base. If you give it a bit more time, he thinks it will run up and test the peak at around $20.

This had a spike top in 2008 followed by the financial crisis. That was followed by a rally, but it didn’t make a new high. That was the kiss of death for this. It was followed by a long bear. We are starting to get some volume here, so you are probably okay and you could pick away at this.

REITs in general have been a really hot group. Low interest rates help the REITs. Also, they are signalling that the economy is probably not going to be too bad. Chart shows that this one is trending higher. Dividend yield of 4%.

As a short-term+ intraday trader of stocks below $1, which 3 or more indicators and setups are best for taking decisions? A lot of day traders turned to long-term investors because they got the trade wrong. He would not trade anything under $1 unless there is big volume. If it is trading less than 100,000 shares a day, he wouldn’t touch it.

(A Top Pick March 24/16. Up 9.97%.) This has been a frustrating stock technically, because it has a long series of lower highs. He now thinks it is above that. He is also bullish on the aerospace sector.

(A Top Pick March 24/16. Up 20.42%.) This is due for a pullback now, but thinks it will go on for a while. If you are not in this, you might want to wait a week or 2 before committing.

(A Top Pick March 24/16. Up 10.69%.) He likes the industrials because it is a sort of call on the economy. Thinks this uptrend persists for a while.

This is in the industrials, a sector that he likes. The peak was reached in 2007, and then it failed to make a new high in 2011, which put a cap on the stock for a while. It has now digested that move. Now has a well-defined Low at the beginning of this year and thinks it is now going to correct. As the corrective period goes on, the volume increases, and as it moves higher, the volume spikes up again. Watch the volume.

This had a secondary offering last week and it was well taken. This should digest the move that it has had, and then break into new highs.

Chart shows a long upward trend channel and it should work higher. There is no sign this is going to go down. Feels the stock wants to go higher. However, if your portfolio is loaded with consumer sensitive stocks, then you have to lighten up. Consumers type stocks have gone too far and too fast. He would prefer to be underweight consumer stocks, and would lighten up.

Chart shows a long downtrend and you want to watch for a break away gap, which he thinks it has had. The exhaustion gap occurs at the end of the move with big volume, opening higher followed by a huge volume and then closes unchanged or lower. He would prefer to see this on a weekly basis rather than the daily one.

Had a long upward move from 2011 until it reached the peak at the beginning of 2015. It then broke down, and it is now trying to form some kind of a base. It broke above its pivot point and he thinks it will come down to test and then continue upwards.

Chart shows the financial crisis peak was in 2007 followed by a rally in 2011, which was well below the peak. When that happens, you know that the stock is not going to go anywhere for a long time, which has happened in this case. Unless the price of uranium can get above $40 a pound, it is going to be dead money for a while. Thinks the downside is limited, but also the upside is limited. This is a trade that will do no harm.

This has been a relative, long term underperformer. When you are an underperformer, you can stay that way for a very long time.

Fundamentally, this is in the industrial space as well as in the aerospace space. The aerospace peers are doing well. As long as he can remember, the US has been at war with somebody. Technically, this has a long series of tops of around $15.50, and it has finally broken out. With this break out, he thinks this works higher. Once you start breaking out of all-time highs, there is no cap.

The technical rule for him is that you cannot have a rising market without the leadership or participation from the financial sector, so he likes the banks. The banks have weathered well and have done well through all the past crises, and he thinks they can manage this one.

This is basically the canary in the mineshaft for the mining space. The miners have done really well, so this is the major way to play the recovery and resurgence of interest in the mining sector.

Eliot wave theory and Brookfield Asset Management. (BAM.A-T) The problem is where do you start the count. What you need is a bellwether. You can use BRK.B-N or HON-N, but here he suggests Brookfield. The Eliot wave depends on three things – the advancing wave and correcting waves – three pairs of them. The question is where do you start counting – 2009? Look for a significant low. We had had the rebound bull, then the corrective wave. It did not make a new low. Once we exceed the last high, then we know that was the first wave. Then we know we are into the second wave advance. After three advances and two declines, it is over for that stock. The fourth wave is normally long and confusing. That is what we are at now.

There is a technical rule on spikes. There is a head and shoulders pattern suggesting downside is on the way. Usually it takes 2 or 3 years to correct the damage. Does the price lead the fundamentals? He can show you that they were in trouble before the last torpedo. The technicians knew the 50% sell off was coming. In many cases you cannot avoid them. This was a case where you could avoid it.

If you apply Eliot wave theory, we have a spike, peak and a failure. ABC. The consumers were leaders in the third wave advance. These will not make new highs in the fifth wave. The easy fruit has been picked. The stock will drift sideways. He would favour industrials or materials.

He uses departure analysis when the 50 crosses the 200. When that happens you are too far. The trend is clearly upward. Technology should do well this year so stick with it.

He favours materials. We have a spike here with a volume increase. There is fear that the run has finished. Someone is selling. The best thing is to watch the 200 day. You don’t want the stock trading under it. Then watch the 10 week low price channel on a weekly chart and don’t let that get violated. It could be a hard stop loss, but he does not put hard system stops in. You won’t be there when it breaks the stop, but you will see it on the weekend. If it does not go above the stop in the next week then sell it.

We advanced above the panic 2009 level, but have almost gone back to those levels. We made a low and bounced up. The question is if we make it above the pivot point. He thinks maybe we have. Have a stop loss strategy at around $30.60.

(Top Pick Oct 6/15, Up 17.70%) We are now going through a corrective period (wave two). The key here is not to make a new low.

(Top Pick Oct 6/15, Up 10.56%) He picked a strong stock in a safe sector. It is clearly running ahead. The yield is good. It is an outperformer. He is going to stay with it until the price breaks down.

(Top Pick Oct 6/15, Up 13.54%) He likes the REIT space and the healthcare space, but wanted to stay away from the Pharma space. This one was an outperformer compared to its peers. Stay with it.