He likes it because it's boring. This is the time to be cautious (boring). Bond proxies have been hit this year with rising rates, but he doesn't see interest rates rising much going forward. Fortis has good growth prospects A good time to hang out here and earn a dividend. (Analysts price target: $47.60)
Use moving averages to determine bounces and lines of support? It's one factor. Looking at 50- and 200-day moving averages, you get into golden and death crosses, but these happen over too long of a timeframe for him to look at. Instead, he looks at 10- and 20-day moving averages to establish a trade. That said, the 200-day is important, because many investors feel it is and they will sell. It's impossible to follow just one moving average because an investor will get whipsawed all over the place. You need another factor to decide whether to get in or out.
It had a seasonal period earlier this year into March. Now, we're at a floor of $2.50. It's outside seasonality now. Could be a time to exit.