Latest Stock Buy or Sell?

Market. He thinks the market breadth has been slowly expanding since March. There has been no major correction that has occurred while market breadth was expanding. The ValueLine 1700 stock index has hit an all-time high, telling you it is not just a handful of tech stocks leading the market higher. He thinks the market is just starting the next bullish market surge. There are more people short the S&P500 than in 2015. Normally, markets reverse when everyone is “hanging out over their skis” – we are not there yet. He holds 80% of their assets in the US and have been reducing their exposure in Canada due to the current investment horizon.

Technicals and trading. On technical charts he never will make a decision against what the technical chart is saying. He likes to invest in leadership sectors, like inflation based stocks now. He then will look at 150 day moving averages, and would not sell when the price was well below the moving average and he would not buy when the price was well above the average. He likes Point and Figure charts to scan for higher highs and higher lows.

Where are oil prices going? He thinks oil prices are near the lower end of the trading range and more likely to go higher. He would own the best companies in the group as this is a cyclical sector, but not make it a major holding in his portfolio.

Should I sell my negative holdings as the market is trading a record highs? This requires the leap that you are moving on to a better place. Would I be a buyer of these holdings today? If not, then take at least or half or more off the table and watch how things progress. If they are not in the sunshine, be careful. You want to own things participating now. There are many months of higher stock prices yet to come.

The home building and material sector has gone through a correction over the past few months. He believes the bull cycle will resume and thinks this could be starting now. He just doesn’t think this is one of the leaders in the group. He would like to see a move back above $145 before he would get excited. He would favour Home Depot instead.

This is one of his largest positions in their portfolio. He believes in active investment management, however, the world of ETFs is a juggernaut. This company makes custom indices for its clients. This success is likely to continue. He would buy it here.

Reflationary assets are benefitting and basic materials are part of this group. The chart looks like it is consolidating and he thinks there is another lift coming soon.