Latest Stock Buy or Sell? Make More Informed Decisions!

Markets. On the longer-term view of the S&P 500 there was a bottom in 2009 which was followed by a long uptrend. That multiyear trend line has now been broken. In the bigger picture, taking out the summer low and taking out the trend line, he is a little concerned for the intermediate term. Believes we have entered into an intermediate term bear market. That is likely to be the scenario for the next number of months. Last week, there was an inter-week and inter-day reversal. Last Wednesday the market went way down, and then ended up on the day, but still below its Open creating a Hammer formation, usually a sign of washout. When investors are extremely nervous they capitulate and this formation happens, and at the end of the day the market picks up. The theory is that “Smart Money” picks up off of weak hands in the afternoon. That can be a good sign. Started seeing those signs in the past couple of weeks which could suggest a short-term rally. In other words, on any rally over the next 1-2 weeks, stocks should be Sold.

The net trend in the last 6 months has clearly been down. He would want to see a break through the trend line at about $11.50 on some volume. At this point, you don’t buy a falling knife.

The support level is around $135, and you don’t want to see that break. Chart shows 3 attempts to move up with a return to the neck line, which is a little bit dangerous at this point. Still finding support at around $135, but if you see it break that, you don’t want to be entering this stock.

From a fundamental point of view, it is a great company. Looking at the bigger picture, it is in an uptrend over most of the past 12-14 months. That is positive. Look for rising highs and rising lows, which this one has. As long as the $13.50-$13.77 holds, it is probably pretty favourable. He doesn’t see anything wrong with this chart.

A very choppy looking chart. It has an uptrend which has been broken. We are now getting declining highs and declining lows, and that is not good. He would look to see if it finds support at around $5. If it gets there and finds support, and holds it for at least a few weeks, it might be worth trying to catch a bounce, but at this point it is in a downtrend and don’t fight it.

Caller was surprised to see this go down 20% when the market only went down 10%. That is called Comparative Relative Strength, and is one of the things that technical analysts have to pay attention to. The healthcare sector in general has been an under performer. Was in a big uptrend in the last year, and then fell like a brick. It tried to establish a base late last year, and it broke down again. At this point, he would not Buy the stock. Would like to see it base for a while.

Canadian banks in general are very tied to the economy and natural resources. When you are making a bet on the banks, you are making a bet on the Canadian economy. He would say the outlook is mediocre. Chart is showing a series of weaker highs and weaker lows. There is a decent potential for the stock to rally to the top of the trend line in the short term. That is the good news, but he would not initiate a mid to long-term position, but maybe a short-term trade, but maybe not play them until things turn around.

Chart shows a rounded bottom running from 2011 to 2014, and then it topped. A classic top with a bunch of peaks, and then it broke the neck line, tested, and then fell further. Since that time it has been pretty much in a downtrend. Until it bases, he wouldn’t touch this.

Chart shows a base of $15, and he was trying to trade between $15 and $18, and then there was a breakdown. Banks make a little bit more money when rates go up, and there was an outlook for that to happen, but it now may or may not happen. Thinks it will get a return to $15 on an oversold bounce, and he doesn’t like a big long base break down like this.

With leveraged ETF’s, you don’t trade them for the long-term. You buy them for a very specific trade because you are getting double the fun. You have to remember that these funds are reset every day. Oil itself is not basing and he doesn’t think it is time to buy it. If oil does bounce, he would only hold this for 2 or 3 days.

(A Top Pick Dec 18/15. Down 14.96%.) Was looking for it to get into the $40 area, but it failed and has broken down. It is oversold like a lot of stuff right now, and he is looking for an exit in the next little while.

(A Top Pick Dec 18/15. Down 5.53%.) Still holding this in his income portfolio as the dividend is fantastic. However, Sold it out of his growth portfolio. On a long-term chart, the stock has come into a reasonable level.

(A Top Pick Dec 18/15. Down 9.28%.) He has held this for about 18 months, which for him as a trader is a long time. Generally, the stock has been okay, but it is breaking down right now. Will probably be looking for an exit point pretty soon. Everything is so oversold right now that you don’t want to Sell into the madness. He is looking for a short-term rally in order to get out.

This chart is very, very typical of a lot of stocks right now. They are moving sideways and kind of trapped in “never never” land, like the market has been in the last 1.5 years. You want to watch this to make sure it does not break down. At this point it is fine. If it bounces off the current support level, where it is trading right now, it should be fine.

Charts. He always uses logarithmic charts. Sometimes linear charts distort things. A logarithmic chart will be on a trend line, but on a linear chart it is not. It is important because a $10 stock that moves to $11, a 10% move, is different looking on a percentage basis than a $20 stock that moves up $1.