Today, William Chin commented about whether ZCL-T, HDI-T, CLR-T, CSU-T, HBC-T, CFP-T, BBD.B-T, AX.UN-T, MG-T, TWTR-N, LMT-N, MPC-N, GLD-N, QCOM-Q, FCX-N, BCE-T, UNS-T, CLR-T, AGT-T, CXR-T, BB-T, CAE-T, KMI-N, GEI-T, GE-N, CJR.B-T, MCHP-Q are stocks to buy or sell.
The 1-year chart shows an inverted head and shoulders base formation, giving support at around $11.40. The 5-year chart shows resistance at around $16. It might go a little bit higher in the short run, but you are running into a mountain of overhead supply of people owning stocks. He would not be that bullish on this. The dividend of almost 10% is a warning sign.
This is not performing as poorly as the crude oil complex, because it does not have exposure to production. The short term chart is neutral. It probably attracts a lot of dividend seekers. The longer-term chart shows an overhead supply from 2013 to 2015, but is now struggling. There should be resistance at $16-$17 and upwards. Yield of about 9%.
The chart shows a trading range from 2014 on, which it has just broken out of, which is always a good sign. It reached a higher high, and is now testing that high. Retesting the high indicates that buyers are so convinced that they do not mind paying previously high prices. It also means that sellers have been exhausted.
(A Top Pick May 9/16. Down 16.59%.) Specializes in vegetable-based proteins, lentils, and is very popular among the younger generation. The short term drop is mainly due to a supply constraint, a temporary phenomenon. Harvest season is going to be much better in the next 2-3 quarters, and he continues to like this.
(A Top Pick May 9/16. Up 4.81%.) This continues to do very well. Made some very good acquisitions, and are doing a pretty good job in cost savings. The price is “hanging around the highs”, so buyers are more enthusiastic, and the sellers are getting taken out. Demand continues to be strong, so this will go higher.
Just hit a new all-time high. This pays a steady dividend, and in an environment where there is a lot of uncertainty, it becomes a very attractive. It is attractive both on a yield basis and on a safety basis. If you own, he would consider taking some money off the table if it goes another 3%-4% higher. If you can make one year’s yield in terms of capital gains, 4%, take it.
Short or Buy? This has gone from mid-$50 to below $10. The recent rally to $12.57 may seem impressive, but looking at a 5-year chart, this is still in a major downtrend. Commodities have just finished a major cycle, and going by past history, it takes 3, 5, or even 7 years for big commodity cycles to recover and go back up. He would not hold this one.
Markets. The S&P 500 is showing wide divergence in stocks, more than is historically normal. A lot has to do with different central-bank policies and the secular changes in the economy. The US$ is going to continue to show strength against other world currencies, because the US central-bank is ahead of everybody else. The European Central Bank and the Bank of England are in a very expansionary monetary policy mode. Bank of Japan is considering “helicopter money”, which could consist in part of having the government issue bonds to the bank of Japan with no maturity and zero interest rates.