Today, Larry Berman CFA, CMT, CTA and Jeff Young commented about whether GIL-T, KEY-T, WIR.UN-T, AX.UN-T, HSE-T, CPG-T, PPL-T, ATD.B-T, AQN-T, GLN-T, SU-T, SPB-T, ERF-T, CSH.UN-T, DII.B-T, ZWB-T, ECA-T, CAE-T, SAP-T, BTE-T, QTRH-T, WSP-T, COS-T, CM-T, FRU-T, UFS-T, ECA-T, SU-T, HSE-T, DIS-N, CVE-T, BBD.B-T, SU-T are stocks to buy or sell.
Educational Segment. The Science of Making Decisions. When there is Euphoria, you want to be careful. When there is depression, you want to consider buying. Sell into strength and buy into weakness. Partial buys and sells are known as ‘rebalancing’. Evaluate the volatility of what you are investing. Avoid influences that promote emotions.
Markets. He is not buying energy stocks today, but watching them with great interest. The pressure has to let up eventually. The drop in oil price is supply driven, not demand driven. The supply increase can’t continue for long. A call from the US to sell Canada came out and he feels the US are probably shorting oil stocks. The lower Canadian dollar benefits some oil companies in terms of costs. Two tech stocks with US exposure hit 52 week highs today. As we come to the end of the year you should see some covering on the shorts.
Markets. The energy sector is getting stupid cheap and could stay there for 6 months. People are panicking. There is tax loss selling. This represents an opportunity. You have to be able to handle the increased volatility, however. If oil goes much below current levels, companies won’t make much money. Make sure you are diversified and don’t double down on your positions.