Latest Stock Buy or Sell? Make More Informed Decisions!

Market. The Financial sector in Canada has been underperforming the TSX since April. The last three interest rates hikes have not proven as good indicators for the banks, despite expectations that it should be supportive for them. Although they can make more money it is impacting their mortgage business negatively.

Sell in May. From May 6 to October 27 tends to be the weaker six months in a given year. This is the time de-risk a bit and accumulate cash to look for opportunities.

Market Bubbles. The market could be susceptible to a correction, but it is only probabilities. Europe is starting to fall apart with weaker earnings. The US seems to be standing alone with its market success – but will it last.

Seasonality in Industrials. These tend to do well from January to May and retrace in the rest of the year. There has been weakness earlier in the year than normal, which is suggesting headwinds for this sector.

Health Care Sector. This tends to be known as a defensive sector, because of the stability of earnings. The issue this year was that President Trump threatened to come after the pharma sector for medication costs. Seasonally the sector tends to do best from August into October.

Bank share selloffs after earnings. Canadian banks are very popular and investors tend to prices up in anticipation of earnings, especially ahead of year-end earnings. There tends to be a price decline unless there is a really bullish earnings surprise. The concern today is about mortgage origination. This trend is scary for the sector.

This is a real estate restructuring play. Technically there has been some consolidation and if there is a break above $14, that would suggest some good strength. It still feels like a high risk stock here, he thinks.

This is a speculative stock right now. If the price can build a base then it would be encouraging. It has a rough balance sheet right now, so he needs to see some supportive price action first. He would stay away from this right now. The high yield suggests the market expects a dividend cut anytime. Yield 17.1%.

A well-run company that has made good acquisitions, he thinks. It has consolidated in price since 2017 and there does not seem to be any urgency in the market to buy it. He would wait until it breaks above the 2018 high.

Industrials usually show strength from January to May, but CMI-N has shown weakness earlier than expected. This has him worried about this company and this sector as a whole. Technical support has been broken as well, so he would not buy this.

The dividend payer space has pulled back this year due to the expectation of higher interest rates. He thinks it is a great company with good US operations. The price has fallen back to technical support and thinks it could be a good place to add to a position, but would like to see move back above $13 to buy.

The healthcare sector tends to be known as a defensive sector, because of the stability of earnings. The issue this year was that President Trump threatened to come after the pharma sector for medication costs. Seasonally the sector tends to do best from August into October. He would wait on this for a short term test of support $47 and this could be the level to get into. (Analysts’ price target is $59 )

Previous to this week was known as New Flyer. They missed on their last earnings. It is a well-run company with a good backlog of orders. From a seasonal perspective, however, manufacturing is not in a peak season right now, so he thinks there is now a chance of consolidation. He would become a buyer on a move back above the 2018 high.

Overall, this is not the time to be getting into the aviation sector – fall is much better. The summer is better to be short. Technically this stock has fallen to key support and is testing the bullish breakout of 2017. He would not buy here. Yield 6.2%

He would favour shifting into a much bigger company than this one. Technically it is in a downtrend and it is not a peak period for the energy sector. He would not buy this one.