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Investing. Russia is an ongoing saga. When the first market dip came and then bounced back he said it was not done yet, but that it was only market noise. It does not impact global growth. The best way to battle Russia in their new cold war is for the world to take less of their resources, so that will benefit Canada. But that could be years away. For now it is anxiety taking place in the summer months and investors may decide to defer buying. Stocks are weak in Europe with financials leading and we see it going below a long term trend line so it might be a good idea to back off and not be an aggressive buyer. One of the best ways to be defensive is to buy the US dollar.

This strong trend developing last year broke and we are getting lower lows and lower highs now. This is not good. We are in correction mode. There was support in the $14 area, so 2-3% lower he sees support coming in and that is where to nibble.

Equally weighted bank ETF. ZEB-T is the better way to get in. He would be patient until this ETF gets to the $21 area because he expects a pull back. Step aside. There is lots of volatility short term.

Shorting Equities – which equities to short: He is negative on the energy sector in the short term. One bullish thesis is that North American supply of oil offsets OPEC. The US is importing less and less from OPEC, moving demand to Canada and that changes demand dynamics dramatically. But names like SU-T are overbought. You might short as a quick trade, but there is nothing that is particularly overvalued at this point. RWM-N plays the short side of the Russell 2000.

Equity based hedge for inflation over 15 years? The only inflation he knows of is inflation-linked bonds. TIP-N in the US. There is one in Canada also.

This is probably the space where a lot of the growth is going to come from in the next number of years. There is a massive trading range and we are at the lower end of that range. But this sector has done reasonably well in the last year or so, but this stock has not, so you have to question it. It is near support right here.

Media is huge going forward. We will probably not see the growth over the next few years so it is about the yield. It is a fine holding to accumulate when it pulls back.

Educational Segment. Selling out to Cash Because of Possible Correction: We should see a 5-10% correction including seasonality and geopolitical events at present to occur soon. Selling out to cash is risky because if markets go up, then you lose out. It is harder to buy it all back much higher (psychology of investing). If we get a correction, it is normal and mild. We should not be overly concerned about it. Typically in this situation, the Canadian dollar goes south. He would play it by holding US currency or buying US investments that are hedged to the US dollar. Holding US$ during a 10% correction would only lose you 8%. ZWH-T adds a covered call component to reduce that loss to 6% yet when the market goes up you typically gets a 6% yield so if you are wrong and there is no correction you still make money.

A very niche area. There is a lot of good news and the stock is going up and then it turns. It looks to him like you have this strong potential support at $20. The market seems to have forgotten what this breakout was about. You need to see the break out establishing.

Markets. Behavioral Analysis: Technical Analysis is a sub section of Behavior Analysis. It tells you how people behave according to the market. By looking at people’s actions you want to predict up trends and down trends of a stock. A lot of people are now worrying about the market having gone on for 4 years, but there is no law saying the market cannot go on further. A lot of people got out of the market in 2008 and they have not all gotten back in. We are in a major secular bull market. S&P and TSX are more or less working in tandem.

There are corrections in time and in price. When a stock goes through a downward correction it is next likely to go in a horizontal correction (a correction in time). The stock is currently fighting its 40 week moving average. He thinks the stock will test the $20 area.

He prefers to follow the most widely held of the .A and .B stocks. It should have support about where it is and if it breaks it it will continue down.

Nat. Gas. Made a nice base after a sell off. It went into a trading range, building a base. This year it had a break out and an up leg. We are now going through a bit of a correction and now it is starting to be a good stock to be in.

Seasonality? Some energy stocks have had a good move and others have already had their correction. This one had a huge move and then a correction and then a drastic move and then should have another correction. It might re-test previous lows.

Gold: We had a substantial move on gold and it is trying to find support in the $1200 area so we probably need to re-test lower than where we are. Some gold stocks still have not come out of their negative period. FNV-T is an example. YRI is still below its 40 week moving average. This looks like it is starting to make a base, but don’t expect to have an immediate upward reaction on this stock.