Canadian real estate appears to be on the verge of rolling over. I couldn’t get a TSX Real Estate Composite chart from stockcharts.com, so I have copy/pasted a chart from my Thomson Reuters system below. Note the lower highs and lows on the weekly chat, and the current flirtation with the 200 day (40 week) Read More
Sideways stocks worthy of consideration
I like stocks that are trading sideways. In fact, I like them so much that I named my Technical Analysis book after the pattern (Sideways: Using the power of Technical Analysis to Profit in Uncertain Times). Consolidation patterns often occur after a period of above-average returns. The consolidation returns the stock or sector to its Read More
Catching the next breakout
There’s something exciting about an early stage breakout. It feels good to have caught the train early. You get the window seat that way! It’s getting pretty hard to find early stage breakouts lately. I’ve mentioned the emerging markets and Europe on this blog before – but they are past their “early stage” breakout period. Read More
Why you should watch the bond market if you own higher dividend stocks
I did a late night webinar for the Whiterock Shareholders club in BC last night. One question that came up was my outlook on Canadian bonds. The Canadian bond outlook is rather important for investors who play the TSX. That’s because the TSX is concentrated in a few sectors that are largely bought by retail Read More
Small stocks might be ready for big gains
Recently, the ValueTrend Equity Platform took a position in a small capped ETF. We only took a bit of the position to start with. But we’re seeing evidence for adding to this, and other small capped positions over the coming weeks. Below is a re-print from our Valuetrend newsletter concerning a potential rotation over the Read More
The troubled TSX
The trouble with the TSX index is that it is a concentrated index. In truth, that’s because the Canadian market is a concentrated market economy. For instance, the TSX 300 index holds: 32% weighing in financials. 16% is in energy….We’re talking almost 50% of the index in just 2 sectors!!! After that…Industrials and minerals come Read More
Small capped stocks are consolidating
In about a month, small capped stocks are supposed to move into their seasonally better time of the year. This, according to all of the seasonal gurus out there. The problem with classifying a small capped stock index is that capitalization, by itself, does not necessarily lead into correlation. In English, what I am saying Read More
Hype never works
Today, let’s look at the hyped up sectors that people bought into a year or two ago—seeing nothing but upside, all based on an investment “concept” or “theme”. Perhaps we can use the lessons of past hyped-up sectors to examine new or upcoming potential bubbles. Bandwidth, baby! The classic example of hype was the Read More
Two sectors that may break out
I love sideways stock patterns. In fact, I named my second book covering Technical Analysis after that pattern. There are two ways to trade stocks or stock sector ETF’s that are stuck in a sideways consolidation patter. You can buy at the bottom of the range (support) and sell at the top (resistance). Or you Read More
Is junk food healthy for your portfolio?
A study from The Physiological Society, shows that junk food can lead to many health problems including kidney damage on par with diabetes. Yet, amazingly, many fast-food outlets are considered “consumer staples”. I argued this point with resident CFA Craig Aucoin here at ValueTrend. How can a high fat hamburger & fries on white bread Read More