GMAC high yield bonds- Don’t like these bonds. Company has serious problems ahead. Buy the common shares if you think GMAC is worth investing in. Take your money and run from these bonds.
GoC 30-year bonds- They’ve been in a bull market, with a lot of jerking around lately, but it looks like the long term has more room to run. Be more cautious as the yield curve gets steeper. Right now they look OK for further capital bonds.
Interest rate risk- It’s very challenging to predict when and by how much interest rates will change. Interest rates have got a long way further to fall. Pay very close attention to the U.S housing market to get an idea of when the interest rate may change. Borrow money in U.S dollars not Canadian dollars (bearish on U.S $)
Bearish/Bullish Gaps- When a stock closes at a certain value, then opens the next day higher/lower. When gaps occur they typically fill in 3 days. Then the primary direction continues.
Possible that this stock will return to its 200 day moving average ($12.50). If it breaks $17, it will move all the way to $12.50. Set stop-loss to roughly $17.
CN and CP are both basically the same. About to begin a better year than we had for the last 6 months. Big caps such as this should recover quite well. Take defensive measures. It should start moving back up.
This stock had a big upwards gap. This stock has made a recovery high. It’s doing very well. It went through a big reorganization, new names, new people. Great stock.