Stocks and sectors for your watch list

September 28, 201530 Comments

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.

DIS

Telecom
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.

t

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.

bce

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.

rci.b

Basing stocks
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

CRM above is basing, and stayed over its 200 day MA during the correction. A breakout through $75 would be bullish

tasr

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 [email protected] – 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

BNN studio

30 Comments

    • Hi Wendy…we like Magna’s fundamentals better but LNR has a similar chart pattern, so its looking attractive.

      BTW–don’t forget to email BNN with those types of questions so I can cover them on the show this Wednesday–here is the email to do that:

      You can email questions now to [email protected] – it’s important that you specify they are for me.

      Reply
  • Keith, what do you think of Teck Resources?
    The fundamentals look attractive.

    Regards,
    Steve.

    Reply
    • Hi Steven–long time no talk!
      You know, I actually prefer to do the stocks on BNN per my prior response and I’d still suggest you email them with the question for my show
      But short form answer (I’d like to cover this one more on the show): Its got HUGE support at $5. But whether it rises from there will be dependant on commodities–and I am only so-so on them as a group

      Reply
  • equities I am watching:
    1) ZEB- cdn banks because Keith and others have suggested this could move
    2) HXS or HSU- S&P 500 ETF either single or levered.
    3) HNU or UNG- natural gas as I anticipate growth to $3.00 as we move into winter.
    4) XLY- consumer discretionary based on Keith’s current assessment
    5) IWM- russell 2000 because I recall Brooke has this as a seasonal play near the end of the year (I need to validate timing of seasonal play first)
    6) XHB- S&P home builders again I recall and need to validate the seasonal play timing.

    Reply
    • Thanks Dadydo–good list!
      Homebuilders seasonal time start in October, per Brookes book.

      Reply
  • Hi Keith,

    FB looks to holding relatively well also. Then again so the QQQ’s as compared to IWM and SPY. Any thoughts?

    Thanks and keep up the good work!
    Parm

    Reply
  • I am looking at chorus aviation, mostly because of monster dividend (and nice pullback). Anybody know much about it?

    Reply
    • The chart looks pretty good Mark–I am going to have Craig (ValueTrend’s fundamental guy) look at this one fundamentally.
      Call this one in to BNN tomorrow (Wednesday)–I may have some work done on it by then–thanks

      Reply
  • Keith, I’m watching:

    Texas Instruments TXN, National Grid NGG and maybe JNJ.

    -Bob

    Reply
  • Hi Keith/Everyone,

    I’m watching
    V and MA – Held up well recently
    EFN – I recall Keith was watching this one too
    CTSH – big tech company few people know about with a $60 floor
    CNR – if the $70 floor can hold
    Dol -to top this one up. Rich valuation but the trend is your friend
    Like most others Xiu and spy for diversification

    Reply
    • Awesome–thanks Eric
      Interesting consolidation on CTSH–I’m going to look into that one–you are right, unknown to me at least!

      Reply
  • I’m looking to add high-yield income producers, so some beaten-down REITs are catching my eye :

    CUF (play on Québec)
    DRG (play on Germany)
    ZRE (for diversity)
    … might also take positions in ZWH, TXF

    Reply
      • Sold CUF for seasonal reasons, or because you see deeper problems?
        Myself, I’m looking for some multi-year holds in the income space…

        Reply
        • Seasonal sell, plus a breakdown of support on the neartermed chart. Its actually a pretty good company, so if you are patient it may be an ok hold. We just see better opportunities elsewhere so will take our losses on this one and move on. That’s trading–you work with your horizon, and discipline.

          Reply
  • Kieth

    I actually called in today asking about EFN. I have been in and out of it since it was $6. I think it is a solid investment. You mentioned you were looking at it but were not in yet/ What needs to happen to draw you in ? Where do you see this stock short and long term?

    Much appreciated,

    Michael

    Reply
    • Its in a consolidation–you can buy at the bottom of the current range around $18, or even better / safer on a breakout through $20

      Reply
    • Hi Ann Marie
      I’ve looked at this one before–kind of looks like the banks–ie they were trending, then broke trend, and are now trying to consolidate. I’d wait for a breakout personally

      Reply
  • Hello Keith/Everyone,

    I’ve been keeping my eye on TASR as it looks promising. I recalled Keith mentioning a possible buy here. Any short or long term potential for TASR?

    Thanks

    Reply
    • Hi Cody
      Technically, if TASR can go well through $24 on volume and stay there, it would be bullish. It is a more aggressive play given the nature of their business so be mindful of that risk- but it could be rewarding for those with the risk tolerance–again, only on a breakout though.

      Reply

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