RISKY
A tech ETF for TFSA

ZWT pays you income using covered calls. But it can be a little volatile; it depends on your risk profile.

COMMENT

The Canadian dollar will get weaker, before it gets stronger, because our central bank has been more aggressive in cutting interesting rates than the US, and he expects this to continue, 25-50 points by year's end vs. 25 in the US. Also, weaker oil prices will make the CAD weaker down to 70 cents in the next 6 months. But after that, you will like the Canadian economy more.

BUY ON WEAKNESS

One of the best semi stocks, are well-positioned for growth. Likes it, but is overbought now. Buy dips. The street target $230. Support from the 200-day moving average is $160.

COMMENT
Educational segment

What happened in the last decade in bonds won't happen going forward. The world be slightly more inflationary going forward, but nowhere as bad as post-Covid, like 2.5-3%. There will be government deficits (a major problem), so there will be a need to finance that debt. The 60/40 portfolio no longer works. Look at XBB. Today, the best you'll earn in a bond portfolio is 3-3.5%; you have credit risk and capital risk of inflation. Not bonds, but private credit will give a much better fixed income return for the next decade.

COMMENT

In an election year October can be more volatile than usual and there is potential volatility in the next few weeks. Retail investors are bullish and that historically is a bearish signal. The VIX is trending up and the market is trending up at the same time and that's unusual. Institutional investors are reducing their exposure to stocks so the the retail and institutional groups are diverging. We are just tipping into bullish sentiment but if it goes really deep then that is a reliable signal.

COMMENT

There is a long breakout on the one year chart. It is a little ahead of itself and may pull back which would be a buying opportunity.

DON'T BUY

It has broken its support resistance at $20 and the previous resistance at $30. If it forms a base then that might be a time to buy.

Unspecified

Its chart shows a rounded bottom. It has had a move up out of the base and then a pullback to test the hammer so it looks ok.

Unspecified

There is an uptrend in place along with tests of the trendline. You could buy at the beginning of up bounces but don't buy in the troughs.

Unspecified

It has a choppy chart with two lower highs which is bad. You don't want the low to be broken. He doesn't know - it could be a buy if it finds support at the last low, maybe $450.

COMMENT

The caller was wondering if we are at a market top and should we use daily or weekly charts to determine if there will be a market top reversal. This involves macro analysis which he a does a lot of. He uses weekly charts and the 200 day moving average. Look for higher highs and higher lows in the weekly charts. As soon as the last low is taken out and there is a break of the 200 day moving average it is a strong indicator that the former trend will turn into a base or a downturn.

WAIT

He legs into stocks, not dives into them. It has formed a little base around the trend line and then started up. He will start buying in three legs of 2% as it proves itself.

WAIT

It is trending the right way and has moved hard on the upside. He doesn't know the momentum indicators but it is off the trend line and then may pull back to the trend line for a buy so wait.

TRADE

It is in a sideways, tradable pattern and tried to break out but failed. It is stuck in a range so trade on the pullback.

DON'T BUY

He bought it a year ago. It started a base and then broke down so he sold it two weeks ago.