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 |