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Chart shows a downward channel from earlier this year. Expects the whole commodity complex, anything to do with commodities, to do quite well. However this one is not showing initial strength like the rest of them. There is a move from the end of August at around $12 to the current price of $14.86. If you can get this at about $15, you might be happy. This has not been good compared to some of the other names.
He would have liked to have seen this hold its low at the end of 2016, but it didn’t. A lot of indicators show this as oversold. Consumer cyclicals don’t show a strong relative performance. Consumer defences, consumer staples and consumer cyclicals are not showing as strong as some of the financials, energy, etc.
This seems to have been stuck in the $0.25-$0.50 netherworld for the last 3-4 months. It has been banging into a kind of moving average. Chart shows a huge base, and if it ever got its act together, it would probably get a lot of attention. A 1-year chart shows it bottomed at around $0.13-$0.14 followed by a little break out, a little resistance and a slowly falling trend line. Until it got above $0.50, he would not be interested. Being a Venture stock, it is probably very susceptible to news.
There has been a little volatility. The long-term moving average is going up nicely from early 2016. In 2015, it got a little overextended, which can happen from time to time. Chart shows a long downtrend line which was recently broken. The biotech sector is the right space. He believes, on a fundamental basis, that we are just scratching the surface on what biotech is going to do and how it is going to change humanity. Believes it will be a game changer. This name looks like it is breaking out. A little steep right now, but looks like it wants to go much higher and hit around $60.
In line with what he had talked about earlier on, with rotation in defences, he can see this sort of started back in the spring. It hasn’t broken down terribly. If you have a nice profit, maybe you want to take some off the table. It is probably going to want to migrate back to $43. Not a huge move and you get a nice dividend on this. As we move throughout the year, the pro-growth themes will start to get a little long in the tooth, and people may start to re-evaluate what is going on. This would be the exact kind of name he would be looking at as we move through the winter and into the new year, and asking if this was a good price. $42-$43 would be where he would be most interested. You shouldn’t sell this now.
This is in the right sector. It is going to give you as much safety as you are going to get by and large, through the SPDR Financial ETF (XLF-N). Chart shows a good long base from 2014 and into 2016, followed by the 1st thrust in the latter part of 2016, i.e., the Trump bump. You want to see it get above the recent high of around $71-$72. It is the best bank out there. (Analysts’ price target is $74.)
The run on this started a bit sooner than everything else. If it gets through the top of $14.20, it will run. The chart shows a huge head and shoulders formation. Some of the bigger components are things like Lundin Mining (LUN-T), Teck Resources, BHP Billiton, etc. It will be very volatile, so if you get some profit, then maybe piece off some of it. Come the spring, you are probably not going to want to own this.
