• Google+
  • LinkedIn
  • Twitter
  • About Us
  • Contact
  • info@valuetrend.ca

ValueTrend

Investment Analysis | Wealth Management | Portfolio Management - Limit Your Risk. Keep Your Money.

Toll Free: 1-888-721-8736
  • Home
  • About Us
  • Who We Serve
  • Case Studies
  • Our Approach
    • Client Satisfaction Survey
  • Performance
    • Equity
    • Income
  • Smartbounce Blog
  • Contact
  • info@valuetrend.ca
  • Facebook
  • Google+
  • LinkedIn
  • Twitter
  • Toll Free: 1-888-721-8736
  • Home
  • Who We Serve
    • Case Studies
    • Client Satisfaction Survey
  • Our Approach
  • Performance
    • Equity
    • Income
  • Blog
  • Articles
    • Canadian MoneySaver Articles
    • Investor’s Digest Articles
    • MoneyLetter Articles
    • ValueTrend in the News
  • MarketCall
  • Books
    • Sideways: Using the Power of Technical Analysis to Profit in Uncertain Times
    • SmartBounce: 3 Action Steps to Portfolio Recovery
  • Links

Here’s where money is going

January 15, 2018 by Keith Richards 6 Comments

I’ve made no secret of it – we at ValueTrend hold a very strong belief that the market simply CANNOT continue to push high growth stocks up in a straight line. Something has to give sooner or later.

Money may rotate out of some of these high flyers into value stocks, and/or overlooked sectors. There are opportunities appearing right now in overlooked sectors and stocks. Today, I’d like to look at a few sectors that we have bought, or are looking at potentially buying under our technical “BUY” rules. Thoughts below:

 

US banks

I covered the big US banks and the regionals on a blog in late December. Click here to view the charts, which illustrate magnificent breakouts. The US banking sector treaded water for most of 2017. Now is the early part of the trade.

 

Energy

WTI crude oil blew through $62 resistance recently. This is the level that oil has been contained below since early 2015. I’ve been talking about oil sector via this blog and on BNN since November as a trade. My blog in November suggested buying if oil held $55, which it did. We entered the trade shortly after that blog was written with an 8% portfolio position (3 energy stocks). We may bump it up to 10% with a direct oil play via a crude oil ETF such as the United States Oil fund (USO-N).  I’d look to the mid-$70’s then $90 as possible targets for WTI crude – per my indications on the chart below.

 

Upcoming sectors to watch

Gold has been stuck under a very dominant lid since 2013. It has not broken $1400/ounce. The bigger challenge for gold has been in the $1360-$1380 area. I wouldn’t buy gold until it broke $1400, unless you are viewing it as a very near termed trade. But there is a chance it could break later in the year. Materials tend to do well in the face of rising interest rates. Bullion and gold producers will be of interest should gold break the 5 year holding pattern its been stuck in.

Consumer staples have been trading sideways for most of 2017. The SPDR ETF (XLP) needs to break through about $57.50 to confirm that its otherwise healthy looking long termed trend is intact. Look for that development as a sign of possible rotation as value stocks return to the limelight.

Share this post:

TwitterFacebookPinterestLinkedinEmail

Filed Under: commodities, Sectors Tagged With: consumer staples, crude oil, gold

Comments

  1. John Emery says

    January 15, 2018 at 9:05 pm

    There was a new issue from the CIBC which is a rate reset preferred share. It has been set at 4.5% based on a price of $25.00. The rate will reset every 5 years. They are hoping for an interest rate increase to get that going. A preferred share is a hybrid security. Do you think it is a good way to get a better return than cash with less risk than equities? Thanks.

    Reply
    • Keith Richards says

      January 17, 2018 at 9:35 am

      I cant comment on the issue specifically John but yes, rate reset is a good option if rates rise.

      Reply
  2. Nnnash says

    January 16, 2018 at 5:18 am

    As always, this valuable info is highly appreciated as are your comments on bnn
    Regards nnnash

    Reply
    • Keith Richards says

      January 17, 2018 at 9:34 am

      Thanks Nnash

      Reply
  3. Joe says

    January 17, 2018 at 4:00 pm

    Hi Keith,
    Can you please expand on your USO choice. I understand this is a play on the (WTI) commodity itself versus, say, the XLE which tracks the large oil companies. I know you have recommended Vermillion Energy as well on your BNN guest spot, so I know you are not totally against the stocks at this time. According to a State Street fact sheet that I read online, it sounds like the USO would be used for a short term purposes.
    Your comments would be appreciated.
    Joe

    Reply
    • Keith Richards says

      January 18, 2018 at 9:44 am

      Joe, we are contemplating buying a position in USO although oil is a wee bit overbought–would like to see a small pullback, then we may buy that ETF. Its the single best way to play the commodity–in fact, it is the widest traded ETF in the world–so it tends to very closely track WTI’s movements with a tight spread, and has very good liquidity.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

sixteen − 11 =

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Search this Blog

Subcategories

  • Blog (316)
  • Bonds (21)
  • Canadian Markets (77)
  • commodities (114)
  • currencies (31)
  • International markets (32)
  • investment education (110)
  • market cycles (58)
  • market timing (201)
  • preferred shares (2)
  • Sectors (39)
  • stock market (68)
  • technical analysis (151)
  • Uncategorized (25)
  • US Markets (180)

Hate mail and Love letters

At ValueTrend, we’ve been pretty concerned about the overbought conditions on the markets. Sure, we rode the rally for a while, but 3 weeks ago we brought our cash back up, and even went so far as to Read More

Why so serious?

While down in Florida, I did plenty of work, including some speaking engagements, blogs, and even did a fairly decent sized stock rotation within the ValueTrend Equity Platform. But I had plenty of Read More

Whaz-up with da’ markets?

About a week ago, we got a neartermed timing model “sell signal”. This lines up with the “cautious” reading I got from the more macro-viewing Bear-o-meter on February 4th Read More

Our Newsletter

Sign Up & Receive
Serving Portfolio Managers Across Canada | ValueTrend
Canadian Investment Management | ValueTrend Approach & Strategy
Canadian Investment Management & Asset Management | ValueTrend Performance
SmartBounce Blog by Keith Richards | Independent Portfolio Manager

as seen in

as seen in

In the News

  • Watch Keith on BNN Bloomberg
  • Valuetrend in the News
  • Read Keith’s Articles
  • Case Studies
 

Categories

  • Blog
  • Canadian Markets
  • Commodities
  • Currencies
  • International Markets
  • Investment Education

Categories

  • Market Cycles
  • Market Timing
  • Stock Market
  • Technical Analysis
  • US Markets

Website

  • Home
  • About Us
  • Who We Serve
  • Case Studies
  • Our Approach
  • Performance

Copyright © 2019 ValueTrend | 147 Worsley Street, Barrie, Ontario L4M 1M3 | Office: 705-721-8736 | Toll Free: 1-888-721-8736

Investor Privacy Policy | Disclosure