Markets. We are in the midst of a Santa Clause rally. The January effect involves small cap moving. Usually the stocks that are the most beat up at the end of December have rebounded by mid-January as a group. The biggest trend he saw last year was the activist investors bullying companies to buy back their own shares. He is not encouraged by it.
We have had the steady decline since the rally, but we had a pivot point after which if it moves above $32 it confirms the down is over. It is not over yet. He would probably be an owner here. He likes copper stocks.
Industrials are one of his favourite sectors. ZIN-T allows you to buy the basket or you can buy Russell and he would buy it. It’s better to acquire at the bottom end of a channel. Perhaps buy in thirds over a couple of weeks.
Likes the energy sector, but likes the services companies more. There is support here but if we get above $2.50 resistance then you are off to the races.
Breaking out after having been ignored for ages. Very favourable. Go with it and hang on to it until it is over. Imperial oil did the same and would confirm what this one is doing.
Caught up in tax loss selling, which is over. It was almost a selling panic. It took out its previous low. Should rebound into January and then one would take another look at it then. Watch to see if it takes out last summer’s peak.
(Top Pick Dec 31/12, Up 25.88%) Would have preferred CAE but this did okay. For CAE it does not matter what planes are sold. It’s all blue sky for CAE.
(Top Pick Dec 31/12, Up 25.86%) Underperformed Japanese stocks because of the currency risk. He forgot to hedge (DXJ-N). He thinks DXJ will work higher.
There is no historical data because they only just became a public company so you have to look at the peers. It seems social media is not participating in the Santa Clause rally. Stand aside and see what happens in the first two weeks of January.
He is bullish on Natural Gas. It is not a long term investment but not a buy and hold product because it is dealing with continually buying new futures. Leveraged vehicles are not buy and hold products.
Gold.$1180 is big time support and we are back there again. Thought Gold would be crushed today, but it wasn’t. He thinks the first few weeks in January should be quite good for the sector.
Markets. We are in the midst of a Santa Clause rally. The January effect involves small cap moving. Usually the stocks that are the most beat up at the end of December have rebounded by mid-January as a group. The biggest trend he saw last year was the activist investors bullying companies to buy back their own shares. He is not encouraged by it.