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TOP PICK
Technology ETF. Likes technology but rather than buying an individual stock, buy the index. Thinks Cdn$ climb is done so you shouldn't get hurt too much by currency exchange. Had a giant spike in 2000 and then went through a long base, which had to digest the damage done by the spike. Had a low in 2002 and a higher low early this year. Now expecting a 2nd echo technology boom driven by Internet, China, etc.
E.T.F.'s
BUY
Doesn't like potash stocks but does like this. An under performer at the beginning of this rally, has consolidated and formed a nice base and thinks it will rally and break out. Period from March to now looks like an elevated base. Take the advance from December to March and measure from the beginning of the corrected period (semi-log scale not linear), which brings you to about $15.
agriculture
HOLD
This is in a very good sector and he thinks it will work out. Most of your returns in the marketplace is determined if you are in a Bull or Bear as opposed to individual stock selection so even a poor stock will do well in a Bull market. Chart shows higher highs but MACD shows lower lows creating a divergence that thinks the MACD will give a surprise upwards.
Telecommunications
WATCH
Has been in a downward trend since May, which may be because of their South African location. 50 day has turned below the 200 day moving average but the MACD is showing a higher low, which is indicating that the down is over. The sector starts moving up you will probably get a rally in this giving you a chance to get out.
non-base metal mining
SELL
NYMEX Natural gas bull+ ETF. This is a leveraged play and leverage is a killer. He would play natural gas stocks, not the ETF. If the natural gas downtrend drags on for another month or two, it is possible that they may have to shut down some of the ETF’s. Would move out of this and into a natural gas stock such as Breaker (WAV-T), Crew (CR-T), Fairborne (FEL-T), Galleon (GO-T), Progress (PRQ-T), Talisman (TLM-T). Buy 2 or 3.
E.T.F.'s
COMMENT
Thinks natural gas will bottom sometime in the fall because it is so ridiculously over extended. The ratio between natural gas and crude is a historical deviation so it eventually has to come back to the mean. Natural gas stocks, by and large, bottomed in April, rallied and they are sitting at a higher low in July. None of the big Canadian natural gas players have taken a new low, which tells him the low is not sustainable. Stocks to consider are Breaker (WAV-T), Crew (CR-T), Fairborne (FEL-T), Galleon (GO-T), Progress (PRQ-T), Talisman (TLM-T). Buy 2 or 3.
PARTIAL SELL
