I’m leaving tomorrow for Orlando, where I will be doing a seminar for the good folks at the Orlando Moneyshow this coming Saturday Fe 10th at 6:15pm.
Here is the link for the Orlando show — If you happen to travel to central Florida during the winter, or if you have family/friends who do the snowbird routine—let them know about the show. It’s taking place in the Omni Orlando Resort – here is the link to my presentation.
Hey…did anyone notice that the market has been falling lately?
Once in a while I get a short termed market prediction right, and I did get it right on the current correction – I posted this blog before market open last Monday January 29th.
I also posted a blog on the 31st noting a couple of downside targets for the S&P 500 here – those targets being 2700 or 2500 if that first level fails. Read the blog for the potential circumstances surrounding those targets.
Finally, I posted a blog on the TSX suggesting a mid-15,000 downside target. I have a bullish outlook for a trade on the index into the spring despite the neartermed bearish call. Here is that blog.
My comments on last night’s BNN appearance were that this correction has been a long time coming – and is a healthy, much needed break from the rampant foolishness that has dominated markets since the second quarter of 2017. If you read my Globe and Mail article for the show, you will note that I recommended viewers start to look for buying opportunities as markets test and bounce from one of my suggested support targets. And like I always say—you need cash to participate in market corrections, which is why I have been harboring cash for a while now. We’re around 17-18% cash in our equity platform.
We’ve made a list of stocks and sectors we like, and I thought I would highlight couple of them here.
As noted above, we like the TSX for a play on energy and materials (and to a lesser extent, the banks) into the spring. Buying a TSX index ETF might make sense when that market shows signs of support.
I still like energy as an individual play. Canadian producers are attractive – we are looking to add to positons. Below is the XEG chart – it depicts a nice symmetrical triangle. It appears that this index has some catching up to do with the price of WTI oil—a breakout through the upper band of the triangle would be exciting. Pick your stocks individually from this index rather than buying the ETF. There are many varieties of quality that make up the index—we’ve been selectively buying.
I also like the US banks. In fact, I began buying them late last year. Here is one blog on that subject.
The sector still appears attractive. A pullback closer to its neckline break has made it even more so.
Finally, the technology sector – which has been sooooooo overbought…is finally starting to show some potential undervalued candidates. Keep your eyes on AAPL for a reversal. The stock is toying with its 200 day SMA. If it momentarily breaks but then moves back above it, the trend can be considered intact. Its not the only tech stock we are looking at—dig though the group for stocks that are back to their trendlines. There’s money to be made in the right areas.
That’s all for now, folks. I’m off to Orlando. I’ll respond to your questions and comments later in the week.
Enjoy the opportunities as they come up—it’s been a while since we’ve had such a good time to be searching for value!