He always overlays a crude oil chart to see how it performs vs. crude oil. There is a lot of oversupply. It is hard for it to go higher than it is here because of that and so he is skeptical of a breakout here.

It is basically going sideways within a big range. It has its own story and business model so he does not have a strong recommendation. Nothing jumps out at him.

Canadian Banks or Lifecos. You have overhead supply. It is struggling. Prices will have a tendency to go back to the ‘backline’ about $19. Chances are that it goes a bit lower. Overhead supply is those that bought higher and are tempted to sell as it goes higher.

It is trading in an elevated range. This is a bullish pattern. Within this range investors are generally accepting the level. In the long, long run it looks fine. It has to break above $58 before it can go higher.

Canadian banks with a covered call overlay. There is not a lot of growth in the banks for the next few years so this is the best way to play them. These aren’t risk-free assets, but they can be yield enhancing. Canadian banks will likely re-test recent lows in September/October, so be patient before committing new money to them.

He believes in the feed-the-world trade. It is very cyclical, but most of the bad news is in the sector. We are at the ‘08/’09 levels. You need at least a half position in it.

There seems to be some uncertainly. Chen thinks they can make it as a product builder, but also in other areas. There is a risk they don’t execute well. Their products are very, very good, but the business market may not do well. It is not a turnaround story any time soon. It is at the bottom of the range so consider accumulating it.