It’s been a long wait, but I am now legging into the Canadian banks. We sold out of the group almost a year ago, and were very happy we did so, given their performance. But things are looking bullish for the sector again. Take a look at the trendline break on ZEB, which is the BMO Equal Wt. banking ETF, below. Short termed momentum signals RSI and stochastics, bottom panes, are hooking up. MACD, the longer termed indicator, is on the verge of hooking and crossing the signal line. Seasonality is coming into play now, according to Brooke Thackray’s books. The outlook for this sector is improving .
We at ValueTrend bought a couple of banks last week – we chose to own 2 banks directly rather than through the ZEB ETF. Our only problem with buying the group via that ETF is that we don’t like the National Bank chart – it’s not broken its downtrend yet. Why dilute your returns when the rest of the group offer far better charts? Virtually all of the banks, except National Bank, are breaking their bearish trendline. Take your pick.
If you’ve been considering taking a position in the Canadian banks, now might be the time to do it.
Keith speaking at the MoneyShow Saturday October 31, 2015 at 3:30pm
Please come out and join me – I really enjoy meeting readers of this blog at my speaking engagements. Here is the link for the details:
New MoneySaver, MoneyLetter and Investors Digest Posted
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