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A Comment -- General Comments From an Expert
Market. Guest Sid Mokhtari of CIBC world markets guest hosted the show in Larry's absence. Where it stands today, risk rewards are not that great. You are close to your 200 day moving average. The energy sector is still a relative laggard from a relative strength perspective and that is an issue for him. Expect volatility to persist. The message from last year's Q4 is that volatility will be with us for a while longer. In Canada we saw last year better technical characteristics in the resource sector, except energy. Larger caps are still the way to go in the Canadian resource sector.
Unknown
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ZWU-T or ZLB-T vs. covered call ETFs ZWC-T or ZWH-T. From a technician's point of view ZLB-T has established a double bottom. It has better upside tendencies relative to covered call strategies. These are the right area to approach the market in if you want less volatility.
Unknown
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ZWU-T or ZLB-T vs. covered call ETFs ZWC-T or ZWH-T. From a technician's point of view ZLB-T has established a double bottom. It has better upside tendencies relative to covered call strategies. These are the right area to approach the market in if you want less volatility.
E.T.F.'s
DON'T BUY
Trevali Mining Corp
It has ties to the zinc market, which has been under severe pressure from tax loss selling. HBM-T would be a better replacement if you want to be here.
Mining
BUY
Hudbay Minerals
TV-T vs. HBM-T. TV-T has ties to the zinc market, which has been under severe pressure from tax loss selling. HBM-T would be a better replacement if you want to be here.
precious metals
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What happens when governments stop buying their own bonds? Will there be enough buyers? The path of Governments buying their own bonds is still going on but will someday come to an end. Governments wind down their bond buying very slowly so as not to create a shock for the market. However eventually, he believes, there won't be a buyer for US treasuries.
Unknown
DON'T BUY
Altagas Ltd
A good name in terms of if you want to be prone to take some risk for potential returns. Similar to energy names it has lagged recently. You can be very patient with it if you want. Don’t expect it to break out easily. Buy the weakness and don’t chase strength. He does not go after it because it does not show any relative strength. It is a range trader.
oil / gas
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A Comment -- General Comments From an Expert
US Dollar. There will continue to be significant divergences that will develop for the US $. In the short term you have been sitting against the 200 day moving average. But other signals he monitors suggest it will continue to decay.
Unknown
BUY
It got printed in a business magazine over the weekend. It is a very cheap stock with a good yield. It has broken above medium to short term moving averages. It scores well on momentum metrics as well as the yield front. It is a good name for income exposure.
REAL ESTATE
BUY
Banks and the slowing housing market. How many houses have outstanding home equity loans and could they become a problem similar to sub-prime markets? He views the banks as market leaders for quite some time and you want exposure to them. It is a good thing. RY-T and TD-T are the leaders in his opinion.
Unknown
HOLD
20% is a return of capital? You want to know what kind of dividends its holdings pay and what their risk profile is. He thinks you will be comfortable with this position.
E.T.F.'s
N/A
Educational Segment. A Closer Look At The Rally on the TSX. Always take a closer look to see what exactly is leading the markets. Look at what volumes are taking the market higher or lower. The RSI on a daily basis has a lot of noise, but on a weekly or monthly basis is gives you a sense of how deep the oversold condition is. When you get a nine month RSI below 30 on the TSX, your returns tend to be very compelling 6 to 12 months out. Based on historical observations, investors should use any kinds of weakness to participate effectively.
Unknown
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A Comment -- General Comments From an Expert
Market. We had a big, strong recovery since the Christmas Eve low. You got your head handed to you in trying to time it. We have run into resistance right now. It was a pro-cyclical bent in the markets in January: Base metals, energy, technologies, financials and industrials. Defensives were much weaker like bonds, bond proxies, and consumer staples. Going forward we have to see the US dollar go a little lower. We need to see positive comments on the China/US negotiations.
Unknown
WATCH
Vale S.A.
They are pro-cyclical. The trend broke during last year. It would need to hold in the $11.50 range to get over the dam disaster.
other mines
BUY
Open Text
The recurring revenue has been growing. It has had a big basing pattern for a couple of hears. If you own any technology in Canada, this one has to be part of it.
computer software / processing