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Markets. These markets are aging. They are in year 5. As a market ages, it starts to rotate, which he thinks is happening. We are moving out of high-priced assets or assets that have been working and into assets that have a bad reputation for not working. The current market can go on for quite a while. Watch the 200 day moving averages. Most indices corrected back down and bounced off the 200 day, and will probably continue higher. As long as the 200 day is pointed upward in a rising trajectory, we have a bull market. Financials have not rolled over and are still in an uptrend. The Dow broke the 200, but he doesn’t trust the new Dow. They screwed it up by putting too many consumer stocks in it. In a rotation, you have 1) leading sectors, 2) coincident sectors and 3) lagging sectors. Currently we are going through the coincident sector. We are done with consumers so we are moving into industrial and technology, and then we are going to work into materials, which are coming along too. If he had to pick one sector where he wanted to be now, besides materials it would be industrials in both US and Canada, but particularly in Canada. ETF’s are probably the best way to play this market. If you are a good stock picker, what you can do is pick a sector that you like, and then you can drill into the sector and pick a few stocks.

To him, this is an under owned stock. Fairly disliked. When you get a stock like that which doesn’t make new lows, and actually has a series of higher lows, this could be acquired in here.

In a sector he likes. Chart is showing a symmetrical triangle in 2012/2013, which is bullish. It broke out from that and he think it works higher. There is no reason not to like it. It has acted fairly well, even though we have had a collapse in grain prices. Also, there is not a lot of inventory.

If this is gas related, it is probably okay. It will at least run back up to the old highs, and maybe higher. He is kind of dubious about anything that is oil related. We’ll probably get a rally in here, but he thinks the lower fruit has been picked in the energy sector. The chart looks like a long A B C. He would be careful of this At $14, he would start reducing.

Working on an experimental Ebola treatment. The biotech sector is probably the most volatile sector that you can get involved with. He would never buy just one biotech stock; he would buy a basket of 3, maybe 5. He wouldn’t touch this one. Too volatile and too risky.

He looked at this on a “point and figure” chart and it had a breakdown, which he always respects. Chart shows a descending triangle and then it has broken out of the bottom, which is never a good thing. They could rally up to the breakdown and then fail again. If you own, he would reduce into that rally.

Oil. The chart on crude oil shows a “short-term” break, which is just a trading break. It could correct down a little bit more. Anything related to crude, he would be careful of.

Chart shows a breakout earlier this year and it ran up. However, with crude running into difficulty, this could be a problem. The lower fruit has been picked and he would back away from this group.

He is not too excited about the oil side, but feels better about the oilfield services side. If you are going to have exposure to energy, it probably should be through the oilfield services. This is one of the leaders, so if capital money managers, etc. are going to go somewhere, they’ll go to this company. Chart shows a breakout in February, followed by a corrective period at around $13. It probably works higher and will take out the top.

(A Top Pick Aug 20/13. Up 22.44%.) He likes the industrial sector and this is a component that is not overly followed. In Canada industrials have been led by the 2 rails. In that basket of about 21 stocks, half of them are underperformers and they are going to start pulling their weight now.

(A Top Pick Aug 20/13. Up 37.86%.) This is heavily Shorted and disliked, which is a perfect setup if you are a contrarian. Still not too late for this.

(A Top Pick Aug 20/13. Up 7.78%.) You get 4 nice things in this grouping. Gold producers, base metals, forestry and potash. If you get all 4 going, it works out fairly well. Chart is definitely showing an uptrend. If you own, stay with it.

Gold. He likes gold, because the US$ has had quite a rally over the past 6-8 weeks. Usually a rally in the US$ is going to hurt gold, but it didn’t. It’s very unusual to have both of these rally, and it’s a very bullish sign for gold. Any reasonable gold stock, unless it has a mine in a dangerous place, probably should be held. It is important that from June of last year, we are seeing higher lows. It is just a matter of time until the pivot point of March 2014 will be taken out.

(See comments under Gold.) The only problem he has with this is that it may be a sector laggard. He would prefer gold stocks that are out performers in the sector. He wouldn’t add to this one, but would pick another stock instead.

Doesn’t know why this one came down so much. There is a little bit of support at about where it is now, so it should stop. Doesn’t like the corrective period, but does like the stock. Little disappointed in this one, coming down like it did.