Today, Larry Berman CFA, CMT, CTA and James Telfser commented about whether ET-T, IBG-T, SJR.B-T, TECK.B-T, NTR-T, BCB-T, WPK-T, MTY-T, HNL-T, RME-T, HSM-T, PD-T, DM-X, IPT-X, CCL.B-T, BNS-T, TDG-T, PHO-T, CPG-T, CHR-T, ECI-T, GUD-T, TRZ-T, OTEX-T, MFC-T, BAC-N, RUS-T, ZPR-T, QQQ-Q, HAF-T, SU-T, ZWB-T are stocks to buy or sell.
ZWB-T vs. SU-T, which to sell. There is nothing wrong with Canadian banks long term. ZWB-T is his preferred way to play it. He got out of it when it retested last year’s resistance. He thinks we will test last year’s lows and then he would be a buyer. SU-T is a bellwether of the market but will underperform a lot of global oil plays. He would trim exposure and then look to buy it 10-15% lower. He would trim both here and look to buy them back.
ZWB-T vs. SU-T, which to sell. There is nothing wrong with Canadian banks long term. ZWB-T is his preferred way to play it. He got out of it when it retested last year’s resistance. He thinks we will test last year’s lows and then he would be a buyer. SU-T is a bellwether of the market but will underperform a lot of global oil plays. He would trim exposure and then look to buy it 10-15% lower. He would trim both here and look to buy them back.
Marijuana or Tech ETF Recommendation. HMMJ-T is the Marijuana ETF but don’t buy it here. The sector is tremendously overvalued. You would have to trade it with pretty tight stops. For Tech, it includes Bitcoin and so on which are very volatile. This is not the best time to put money to work in Tech. IYW-N is a way to play the tech sector but look to buy it 10% lower.
Educational Segment. The ‘Melt Up’. We are probably in the past phase of the market cycle and the market will probably ‘melt up’. The final phase of the acceleration up before a bubble takes 3 to 3.5 years to play out and you get a proportional decline. The start of this melt up was the election of Trump. The S&P within 9 months to two years will peak out in 3400 – 3700 range and will end the ‘melt up’. The change from previous market cycles is the amount of money in ETFs which affects advance decline lines. He thinks caution prevails rather than chasing the market higher.
Market. Canadian equities will play catch-up on the year. He thinks there is a catch-up trade this year. It is actually driven by commodities, which should do well and help make up some of the lost ground. He is a concentrated fund, holding 20 positions. Recently he has been cycling into some cyclical plays. You want some base metals and energy exposure. You are seeming a lift in the commodities but it has not played through into the equities. There is an upgrade cycle in the energy space that is due. Mining stocks are trading at a discount to their US counter parts. Extraction companies have a compelling risk/reward ratio. CS-T deserves a premium multiple. TCW-T is good in the oil space.
He was researching it in the last couple of weeks. See Top Picks. They have done a good job of growing by acquisition. They should improve as they integrate these acquisitions. The big game changer is announcing of more deals. He likes the name. You have to trade in and out of it. Wait for it to pull back over the next couple of quarters.
He has looked at it a number of times. You jump on it and the stock rolls over. The industry can be quite cyclical. Management is working through issues and building capacity as well as working on properties down south. He wants to see them work through the execution and see what it looks like then. It has pulled back on energy fears because of jet fuel and so he thinks this is a good time to load up on it, but he prefers AC-T.
Market. There might be trouble in the Whitehouse as we learn with the book just released. It is a 25th amendment type of work, meaning impeachment. The market could go considerably higher still over the next two years despite geopolitical challenges. The market will ‘melt up’ in a fear of missing returns. This is usually the last phase blow off of the market. It looks like Canada is moving toward raising rates. He thought they would wait for the outcome of the NAFTA negotiations. They probably don’t want a stronger Canadian dollar, but it could be the right decision if inflation is picking up. Oil above $61 could last. The Canadian energy sector is probably going to lag the US.