I’ve been pounding the table lately suggesting that a buy point is very close. Here are a few sectors and stocks to look at as additions to your own list of candidates:
Consumer Discretionary stocks
Seasonally strong from November to May, this sector contains heavyweights like Disney (which we at ValueTrend hold) amongst others. Despite the breakdown in August – DIS and the overall sector is holding over its prior lows. BTW—regarding the break of the 200 day MA of DIS, too many stocks temporarily broke below their 40 week/200 day MA’s to be picking fights here. Please see my prior blog noting the 200 day (40 week) MA violations in 2011, which did predict a selloff and correction, but not a secular trend change.
Canadian Telecom in particular is looking quite attractive right now. Take a look at the Telus chart- a stock that has maintained its trend, and is holding its 40 week MA.
BCE has been flat lining for almost a year. Its not breaking down – this is simply a consolidation pattern. Buying near the bottom of the pattern ($52-53) makes sense, or waiting for a breakout through $55 would be a good strategy. Either way, its healthy dividend and strong relative strength vs. the market makes it attractive.
Rogers has been the choppiest member of the telecoms here in Canada, but still – not a bad pattern when comparing it to the major CDN sectors such as banks and energy. It will have some trouble facing the old highs near $48, but does appear to be breaking out of a 2-year choppy holding pattern.
Lots of stocks look like they are basing and ready to rock n’ roll – a couple of US stocks that caught my eye are CRM and TASR
Take a look at their charts:
CRM above is basing, and stayed over its 200 day MA during the correction. A breakout through $75 would be bullish
TASR- This stock was tasered in the market correction, but its building a very nice looking Phase 1 Base (see my book Sideways for more on that subject). Its in an uptrend, although a choppy one! A breakout through $24 would be electrifying for this stock (sorry, I can’t help myself). Don’t be shocked if it’s a big mover this summer. Alright, alright, I’ll stop.
BTW—please feel free to mention stocks you are watching in the comment section below. As a community of chart watchers, we can all benefit from each other’s input!
Keith on BNN this coming Wednesday at 6:0pm
I will be on BNN’s call-in show MarketCall Tonight on Wednesday September 30th from 6:00pm to 7:00pm. Tune in to BNN to catch me live on BNN’s premier call-in show, where viewers like yourself can ask my technical opinion on the stocks you hold.
You can email questions now to firstname.lastname@example.org – it’s important that you specify they are for me – or you can call in with questions during the show’s live taping between 6:00 and 7:00 pm. The toll free number for questions is 1 855 326 6266