Latest Stock Buy or Sell? Make More Informed Decisions!

Markets. The Canadian economy is expected to grow 1.6-1.7% with a deficit of $30 billion. Without government spending we are getting no net new growth. The G7 is going to do everything they can. With debt levels the way they are around the world, spending money is not the way to go. The way we run countries has not worked so we have to rethink policies going forward. Look at the aging demographic. People are living longer and governments are not adapting. Rising energy rates would prompt the ECB to up their forecast for economic growth. Wages are the biggest drivers of inflation. Increases in minimum wages would really help. If the markets are strong it could put back on the table a June move in US interest rates. The Brexit risk is relatively low.

Canadian Banks. They have been great long term investments, but dropped 50% in the financial crisis. The growth of earnings during the leverage buildup over the last 30 years is now behind us so growth in banks is behind us. He likes this ETF to play banks. There are no risks except market risks. He does not see growth in banks, however, so wait and buy bank lower in the near future. The demographics and growth from India are likely to be fantastic and it will be the new China. More allocation to India is called for, but they are 1% of the world so 5% is really overweighted. 25% weighting in Canadian banks is only called for if it is not registered and you get the dividend tax credit.

It is not a head and shoulders pattern. There is potentially a flag type of pattern. The high was mid Feb and there were lower highs in April and May. There are stable lows since then. He would be a buyer.

Put Write ETF taking a basket of high quality US stocks and writing naked puts. It takes the yield from that to pay a nice yield on the ETF. This one was his idea and he is the single largest holder of it. It is a conservative way to get more yield. It is a defensive holding for yield only.

He does not advocate individual investors playing the volatility index because it is a short term play. Don’t play the leveraged ones. When VIX gests above its own 50 day average and the market violates it. You can expect some follow through selling and a spike in volatility so you can add then to help with hedging.

SLV-N is a trust silver ETF with call options. He does not think there is an equivalent in Canada.

He does not know the company. Looking at a 5 year chart he feels oil will not go much above $50. He would not play it from the long side. If you like them then you are a dip buyer close to $5.

Educational segment. Sell in May and Go Away? On May 19 we broke the neck like of the head and shoulders pattern. The bulls are now back in control. Seasonally there is talk of selling in May. Historically this has worked. From 1928 to today in the the S&P, he showed a chart of weekly price returns and it is flat May to October each year. The fourth year of a presidential year is different. The seasonal patterns for the next couple of months in 4^th years are quite positive. There is weakness in September and October, however.

This is held in his income model. He likes the dividends. There are some technically favorable factors as it broke a downtrend and has not moved back into it.

Markets. He is looking basically at what are the 50 and 200 day moving averages doing. If both are moving up then it is bullish. Breadth is pretty good. He sees a number of bullish factors. Transportation and industrials are moving together. So these are bullish factors. He worries about the fact that it has been about a year since the market made a new high. If you look at the slope of peaks and troughs then it is trending down. It is a little bit of a downward trending channel. We can’t be overly bullish. The valuation on markets is a little, but questionable. The TSX has been in a downtrend since mid-2014. His view is neutral to questionable. The S&P’s last high was mid 2015. Oil can’t get to that $50 mark and stay there. It is looking better, but he likes the fact that it broke out. It is starting to look better. Oil tends to peak out seasonally about this time of the year and then picks up again in July.

It appears to be breaking the downtrend and is breaking a neckline. This consolidation around the current price, if it gets broken, looks pretty good. He is looking at it.

When nobody talks about a stock it can be a positive thing. It is how you make the greatest fortunes. This is another one that has broken out from a downtrend. It has popped off its consolidation. It may be done with its rally, but he would say it is a good spot to add to your position.

Go to a charting program and apply momentum indicators like RSI an stochastics. There are overbought and oversold levels. He thinks you would find that it is overbought. There should be a pullback.

It has been parabolic for the most part of the year. Most like this tend to pull back. If you are holding for a long time you should be okay, but if you are looking short term and you see a top, then get out.

Great Canadian company and it broke out. It is a buy.