Latest Stock Buy or Sell? Make More Informed Decisions!

Market. Last week was quite challenging. One of the tests for are we over sold enough for the bottom is the McClelland Oscillator. We had two lows last year and one this year and they have historically marked bottoms. We tested the 200 day moving average on Friday and a couple of times it held very nicely. We have to make higher highs in the future. If we don’t take out the highs from January over the next couple of months it means the bears are in control. We can trade the market on the rally.

Balance. Bonds and stocks have sold off at the same time recently. Equities have much more volatility than bonds so you need both to reduce overall risk. How much of each depends on your needs and your tolerance of risks. Equities may continue to be soft while bonds may rally.

There are companies with less systemic risk and more global diversification. They are a bit more sleep-at-night. The stocks are more interest rate sensitive. He would be shifting into lower volatility. Once the market falls 20-25% you should move to full beta exposure.

It is a straight pass-through of distributions. When an ETF has a fixed distribution that is higher than what is in it, then you are getting some of your own capital in your distribution and the ETF provider could alter it.

If you are bullish on a late cycle it is probably okay to buy on this on a pullback. He does not like late cycle inflationary plays. You could buy it for a bounce over the next couple of months, however. It will not do well if we go into a recession.

He likes actively managed strategies in the preferreds. They can go to reset preferreds or to fixed preferreds if there are risks depending on what he thinks interest rates are going to do.

It is fine but why not go to a diversified source of dividends. ZWC-T is a basket of the best of the dividends plus a covered call overlay. You could also go for a foreign ETF but dividends are taxable.

Real Return ETF or Rate Rest Preferreds? Reset prefereds are a good way to play the rising rate environment. He would be buying these into dips.

You get 6-7% return. It holds European dividend stocks with a covered call strategy. The risk is market risk but you can feel fairly safe with this one. He bought last week during the weakness.

6.49% yield. You aren’t getting your own money back. It is dividends plus covered call exposure.

Educational Segment. Last week was quit challenging. The average correction is 5% or more. It was 13% last week. We are seeing an oversold condition on the broad market and a bottom. We tested the 200 day moving average. It is typically a good buying opportunity when it happens in a rising market. If we get above the interim high it will go up but if we don’t take out the highs of last month the bears will win out. He thinks you can trade the market on a rally.

Market. In January he was looking for weakness and was expecting oil to get hurt. Last week we had a blow out number. Natural Gas liquids also went up. It was a shocking number. The price of crude backed off on Friday. He is bearish on oil and bullish on natural gas. People don’t realize that most people heat with natural gas. People are not taking into account storage. Mother nature has the ability to eat into storage. It has had a bigger draw down than in prior years. February and March may have a big draw down in storage. Then the play is whether they can rebuild storage during the summer with the air conditioning season. He is predicting $4 for Nat Gas.

He likes it. It is in his action alert buy list. It is trading very, very cheaply. They are getting a lot of demand for their rigs. These stocks have been devastated and they have low debt. The balance sheet is in good shape relative to peers.

They have a very good hedge book. It is trading about half of book value. It has been hit by disappointment on their numbers. They did a large number of stock issues. Under $8 it looks attractive.

He likes it. It is on his action alert buy list. It has been beaten up. Debt is not a problem. Book value is $5.80. It is a yoyo stock. He thinks it has lots of upside. They will be able to show much better cash flow in the second half of 2018.