Bill Carrigan, technical analyst, Getting Technical Info Services

Bill Carrigan, technical analyst, Getting Technical Info Services

FOCUS: Technical Analysis

Market Outlook: Most global stock bourses are following a classic Elliott Wave count from the March 2009 lows - being a 5-wave advance followed by an A-B-C correction. The 5-wave advance from the March 2009 lows to the April 2011 peak was a typical rebound bull that usually follows a severe bear such as the 2007-2008 financial crisis. A micro-bear market will usually follow a rebound bull. The current micro-bear in most global markets is tracing out a typical A-B-C correction which is almost complete. In the example of the Dow Industrials, we are almost now at support at the 11,500 level.

TOP PICKS:

• Cameco (CCO TSX) $23.98 - A commodity sensitive large cap that has been sold down to 20 percent below the mean - a level last breached October 2008 @ $14.00.
• Lake Shore Gold (LSG TSX) $2.15 - A commodity sensitive mid cap that has been sold down to 36 percent below the mean - a level last breached November 2008 @ $0.60.
• RIM (RIM TSX) $23.04 - A technology / consumer sensitive large cap that has been sold down to 45 percent below the mean - a level last breached November 2008 @ $45.00 - down from a peak of $150 in June 2008.

• Disclosure:	Personal	Family	Portfolio/Fund
  CCO	N	N	N
  LSG	N	N	Y
  RIM	N	N	Y

PAST PICKS: August 19, 2010

Claymore Global Agriculture ETF (COW TSX)

Then: $19.08

Now: $19.97

+4.66%

TR: +5.00%

Manulife (MFC TSX)

Then: $12.31

Now: $13.88

+12.75%

TR: +15.38%

E.I. du Pont de Nemours & Company (DD NYSE)

Then: $40.59

Now: $47.76

+17.66%

TR: +20.48%

Total Average Return: +13.62%

Disclosure:	Personal	Family	Portfolio/Fund
COW	N	N	N
MFC	N	N	N
DD	N	N	N