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Market. China is not hitting the soy bean market which would have been a bigger hit to Trump’s base. Theirs is a very measured response. It all has to get worse before it gets better. This is game theory. We are not at the brink yet in terms of pushing back against tariffs. Trump may get a better trade deal with China specifically. The intellectual property theft that China has been getting away with has to be addressed. Energy stocks disappoint him. Oil prices are holding up and he is disappointed in the stocks. And it is not just our landlocked oil – it is also the US.

There was support at $160. We tested that and bounced for a couple of days and then it broke. It is now showing resistance at $160. The next real support level is probably about the $135 area.

ZWH-T vs. ZWI-T. ZDY-T is dividend payers, the best US payers. ZWH-T has a covered call. In a downward market he likes the covered call overlay. In a strong market you don’t want it. He prefers ZDY-T right now.

ZWH-T vs. ZWI-T. ZDY-T is dividend payers, the best US payers. ZWH-T has a covered call. In a downward market he likes the covered call overlay. In a strong market you don’t want it. He prefers ZDY-T right now.

LIBOR (London Interbank Offer Rate). It has spiked recently, because of technical reasons – repatriation, for example. When the LIBOR spread widens that usually means banks have little trust for each other, but not this time. He is monitoring it, however.

S&P 500 Technical Analysis - The next big level of support. We need to test the February lows. We are testing recent lows today. If we go below that we have to go back to the February low. We also have to test the February low for the NASDAQ. He does not think we can move higher until we test that.

Warren Buffet is interested. A year ago he said Larry would be interested in the mid-teens. There is nothing to tell you that now is the time to buy except a really good value investor sniffing around. There are too many uncertainties. It is interesting and speculative at this point.

He does not think we are going back to 2016 oil prices. 2019-20 could see a drop, though. We are taking out lows in this stock after having taken out more recent lows. It is a very high risk play. He does not think Canada will unlock the value in the energy sector any time soon.

Educational Segment. Will the FANG stocks take the Market Down. Markets are a sum of the parts. You have to look at the parts to know what it will do. He focusing on FANG. The FANG ETF plays the Internet and Tech. There have been no net gains in a year. You are not seeing higher highs. 50% of the NASDAQ is the FANG stocks. Trump is pretty aggressive against AMZN-Q. The trend is not broken on the QQQs. We have to test the February low before this market can gain re-leadership and run (150 level on the QQQ). AMZN-Q has had an unbelievable run. When it breaks it is most likely to find support at the 2017 highs. FB-Q can fall 15-20% more. This could do a lot of damage and Trump will do that if he has his way. AAPL-Q has already rolled over. It has pretty important support at $150. If it breaks it goes to $135. GOOGL-Q may be a target also of regulators, failed to make a new high and broke to new lows. But it would just be a correction in a longer term trend. FB-Q has already rolled over. $127.40 is the highs from 2017 to $106 is somewhere that it will find strong support. It is a big question mark for the market. If we get below the $150 on QQQ it would take us back to $145. The FANG group is 15% of the S&P500 and would take it back to the lows and possibly under cut it. The vast majority of earnings growth will come from Tech.

Market. The technicals are telling us lots of things. In the near term we want to watch the 200 day moving average as it was a support level for the S&P 500. It is at the lows of February now (Mid $2500s). If we hold above that we are good. There is a pattern that leads markets into correction and we are following that perfectly. In 2010 and 2011 we had this pattern. We had a correction in February and now in April and that is in line with those years. His thoughts are that we are headed into a healthy 20% correction sometime this summer. Don’t confuse this correction with a bear market. It is just a normal correction. Bull markets normally go more than 10 years. He thinks we have a significant bull to go but 20% is a significant correction.

(A Top Pick Jan 8/18, Down 10.91%) The chart for oil looks constructive but the energy sector here in Canada has not been that good. He has 3 energy stocks that he is giving another month to until the seasonal period ends and then he is out. He is holding for the seasonal period to give it a boost.

(A Top Pick Jan 8/18, Down 20.79%) It is trapped in a trading range. It should do okay until June when the seasonality runs out on it.

(A Top Pick Jan 8/18, Down 7.34%) Money might flow into this name later this year. He will own it through the summer. The downside is limited. He still thinks it is a buy.

It is a carry forward from January. It is on trend and broke after a little consolidation. It is a gentle slope, which he likes right now. (Analysts’ target: $60.39).

There are a couple of sectors that have been ignored by the markets and this is one of them. He thinks this is the money rotational candidate over the summer. It is on trend and has fallen back to that line.