“Growth” stocks appear to be rather overbought when compared to their “Value” stock siblings. The chart below is that of the iShares Morningstar large capped growth index ETF (JKE). Its top holdings will not shock you. AMZN, MSFT, FB, GOOGL, V, NFLX. In other words, the same names that have driven the market of late. Read More
America is a mess. Stores are closing down because of the pandemic and riots. The stock market is up…..everything is normal.
Today’s title is brought to you by Brooke Thackray, who is not just a good research analyst, but a master of sarcastic wit at times. He emailed me this short comment this morning. Its always interesting to see the reflection of human emotion and how it plays out on the stock markets. Technical Analysis is Read More
Time to rotate into value stocks?
I’ve noted in past blogs that market breadth remains poor (concentration of buying in just a few stocks). This market has risen on the back of very few stocks – largely benefiting from the “stay at home” trend. Names in the take out food industry (Chipotle, McDonalds), companies involved with remote access or internet interaction Read More
Down & out vs. Down & opportunity
A few sectors, namely retail food industry and companies having anything to do with remote work access have done well in this free-fall market. Beyond those areas, pretty much everything else is under water. Some sectors are more or less in line with the markets. So, that means most stocks or sectors are down about Read More
Stocks that might benefit from a stay-at-home policy
It’s interesting to see how China, the instigator of this virus (apparently Taiwan as well) has managed to control the COVID-19 virus. Canada and the USA will probably at some point be forced into instigating a wide stay at home policy. China instigated a 30-day shut-down of everything – including an enforced stay-home policy. This Read More
Must everyone get stoned?
Bob Dylan sang a tongue-in-cheek song called “Everyone must get stoned”. Despite the songs name, it was actually not about getting stoned via recreational drugs. Today I’d like to look at marijuana stocks. Most certainly, this sector stoned its investors in 2019. But there wasn’t much recreation in that stoning. The most followed ETF in Read More
Real Estate is weakening
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