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Market. We so oversold that the bullish percent index reached the lowest level in twenty years last week for both Canada and the US. These levels give us a benchmark as to where we are going into 2019. In July 2002 a low level was set and then the S&P went up 24%. In 2008 it went up 27% after such a level. In Canada the TSX in 2002 went up 10% right after a bullish percent index low, and similar levels in the years listed above. After this next correction, it is a multi-year low. As an investor you want to hold off until this low coming this summer or late fall. Traders can have some fun in the meantime. This is just a 4-year spike down on the bull market. We've seen most of the correction. It is a strange market but you can take advantage by owning specific securities in the short term. The US index has completed a double top pattern in the last two weeks. It means commodity stock prices will start moving higher. Gold is strong until mid-Dec. until the end of Feb. and that has clicked in. Copper normally bottoms this time of year and then goes higher until May of each year. Crude oil bottoms the third week in January. You need to play the seasons, but remember that the seasons do end.

Were ETFs exacerbating the selling in December? ETFs are a greater percentage of trading activity in markets. Between Christmas and New year, volumes are low and concentrated on retail investors. ETFs have a greater influence during this period of time. It ends next week so don’t be too concerned. Indiscriminant selling due to ETF sales is concerning and was so recently when a lot of computer trading took place. It exacerbated the downside but now it is going to exacerbate the upside going into 2019.

Outlook for oil into the summer. Crude oil has a history of bottoming in the middle of January until May. This kind of volatility on the down side means increased volatility on the upside later. Crude prices are trying to bottom. They should then turn up.

How far will we go down in the S&P? He sees the S&P going up in the first quarter and then below the previous low following that and it will then be a multiyear low for the index. It will be a new floor of support. It will then slowly move higher.

Canadian Bank Stocks. A good time to buy in? Historically the bank stocks in Canada reach a low in January and then move higher into April. Currently they are in a downtrend but within the next month the sector will bottom. There is longer term support at current levels to the downside. Risk is minimal. Dividend yields could go higher from current levels.

This is more of the junior play. Marijuana does not have the history for him to do a seasonality analysis. Technically it has been in a downward trend and is at a key support level. You should see it bottom here. Major companies are announcing buying into these marijuana companies and that is a good thing. They need the support of major brands. You should not try to trade more than 10% of the 6 month daily average volume.

Educational Segment. There is going to be another leg lower. The Dow normally does this in a pre-election year: The first quarter goes up significantly. It is the second strongest quarter of the 4 year cycle (5.2%). There was the shutdown of the government which they will get rid of. During the last 18 periods after shut down 9 of them have seen the market not go higher. Negotiations with China are important because if they reach a trade agreement it will have a big impact on markets. Fourth quarter earnings reports from the S&P are expected to be up 12%.

Market. He has been short most of the year and in the last week went net long. There is less downside risk for the markets now. There are potential catalytic events that could send them to the upside. This is far from over in terms of a bear market because we haven’t got all the bad news yet. It is after a 10 year run-up in the markets. A lot of the tail winds have gone. It is a trading market. Look for beaten up companies at low multiples with good earnings with low trading risks, such as FDX-N. We've seen the best in earnings for the next year. He thinks they could go negative for the next year. It is too soon to sound the bell that the bottom is in.

He has cut back on this position but it is still in a sweet spot in terms of the growth going forward. They have not monetized a lot of their asset such as android. There is money now coming out of this sector. There is money flow risk because it is over owned. Advertizing is generally a pretty cyclical thing. He'd like to see a couple of quarters of earnings. This is one of the last tech stocks he would continue to own. He would still have a position. It is a core name. Maybe not put your full position on.

He is not there for the financials and not warming up on them. He does not think rates are going much higher. He was short and covered.

It is one of the stronger companies out there. They look better than most of the industry. It is overdue for a bounce. Analyst reports suggest the stocks are a buy these days but they use $60 oil, yet we are at $45. He has a less optimistic outlook on energy long term. The move to eclectic vehicles is going to take away a great deal of long term demand. He would gravitate to transporters of oil.

The problem with steel right now is global over supply. He is short the SLX-N, a US steel ETF. This industry is cyclical and we have seen the cyclical peak. The US$ might roll over and that would help

It has been a painful year for junior mining stocks. There has been an exodus of capital from the group. It is a pure play on zinc, is a low cost producer and he likes their position. There is no debt and they are building up cash. He thinks a catalyst will be the US$ having peaked and rolling over. The US$ has been a headwind for commodities in the last year.

Are 8-9% dividends because of stocks dropping – are these dividends going to be cut? North of 10% the market is saying they expect the dividend to be cut. Tech companies should invest and grow the business with cash but banks typically pay out a lot to shareholders.

It has a better growth pipeline. Biotech in the US is probably one of the better areas of growth. He prefers the IBB-Q ETF. He likes the sector. There is good growth potential.