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WATCH

Energy is setting up for its seasonal rally into October. The technical chart is demonstrating a bullish channel. He would really like to see a rally back above $4.90 for a signal it is really going to move. In the meantime there is resistance near $4.25, so expect some choppiness.

oil / gas
WATCH

He does not know much about the company, but sees the ride down in price since 2017 appears to be finding some support now. He would need to see a move above $1.80 to be really bullish and it needs to hold support near $1 to stay with it.

Transportation
BUY

He feels the transportation sector is entering into a good seasonal cycle and thinks this stock is in a good risk-reward position. The bearish move since March is now testing long term support near $20, so this could be a good place to begin to build a position at these levels. He would use a 5-6% range for a stop-loss.

Transportation
HOLD

The percentage of the Financial Services sector to GDP is the largest in Europe – approaching 400% of GDP for its capitalization, compared to 150% for the US. He thinks this creates an overhang for the European banks. He would continue to hold for now as there is some short-term basing on the chart, but sees better value elsewhere, like US banks.

investment companies / funds
BUY on WEAKNESS

It has broken down on the technical chart and if it breaks down further, it could re-test $22 key support. He would buy on weakness based on seasonal patterns into October. Yield 5.6%.

steel
HOLD

The $13 area is key technical support going back to 2015. He would prefer Fairfax Financial, who has a significant holding in BB-T. (Analysts’ price target is $11.49 US)

electrical / electronic
HOLD

He sees $22.50 as key support. He wonders if there is topping action on the chart. He prefers Fairfax Financial, although it does not quite the same quality. MFC-T has been focused on their market, but prefers Sunlife (SLF-T), which is demonstrating better technical trending. He would suggest swapping MFC-T for SLF-T at current levels.

insurance