VP & Portfolio Manager, Chief Investment Officer at Castlemoore Inc.
Member since: Nov '06 · 1275 Opinions
When looking at technical indicators, he's looking at things like overbought/oversold levels. Overbought is bad, as you expect that money to purchase stocks is running out and there's going to be a sell cycle.
Put/call ratios, breadth indicators are all positive because the markets have been doing very well. But we're getting above historical norms, which means we're ready for a downward cycle. Volatility is very low. When the indicators get beyond their norm, either at a high point or a low point for that specific indicator, expect the market to reverse.
He expects widening breadth, so small- and mid-caps will start soaking up some of the sunshine that large caps have enjoyed, rotation out of bigger caps.
Yes, but fundamentals have to drive these things. Look at NVDA, where the stock was doing very well and earnings propelled it even further. That wasn't an index move, it was a fundamental aspect of the company. The money coming in will give you some support, but you still need the fundamental story. Stocks can still go down even after they've been in the top 10-20 of the S&P 500.
Excitement about lithium, but the chart looks bad. Stay away until obvious signs of a turnaround. If already holding, be really careful if it drops below $1.60. Right now it's at $1.92.
Looks good. If it can break through current levels, really good potential for a continuation. Right now, it's a Buy. Exit or reduce your position if drops below $21.80.
Sideways. 17-18% drop at end of January, small recovery, but now in very tight trading range of $268-290. Support around $260, resistance around $300. Don't buy now. If you own, make a trading/exit/reduce plan and follow it.
Has grown 31%, on average, over the past 10 years. Chart looks really good. A darling. Paused in 2023, seems to be doing that again. Pauses can last 3-6 months. Buy and hold. Loves the business. You'd want to be out around $3400.
Typically around 10% below the current stock price. You may want to overlay the 50-day moving average, and use that as an exit strategy as well.
Interest-rate sensitivity. Disappointing. Avoid right now. If it starts going up and you want to diversify, you could start building a position, but don't have a lot of expectations until rates start coming down. Not too worried about the dividend.
Huge red flag if drops below $22.50. If interest rates come down, limited upside potential to $26-27.
A yield of 4-6% indicates quality. If you find a yield of 15% or more, you probably don't want to touch it. There's something wrong with the pricing and future dividends are questionable.
Typically 4-6% is what the banks offer, and those are good quality, blue chip, buy-and-hold stocks. Utilities like Telus and BCE are in the same category. Some issues with debt in all these companies, and that's a problem in a high-interest environment.
Loves the stock and the dividend. Bought it for the dividend. Likes how it's breaking out. Good earnings. Dividend's been increasing by 2 cents a year. Upside-down head-and-shoulders indicates a positive reversal of the stock price. Limited because of the sector.
In the middle of a long-term range. Yesterday's news looked very positive. Good, solid support around $38. Potential to get to $50 before it stalls out, in a 3-6 month timeframe. Get out if drops below $40.
Fantastic-looking chart right now, one of the smoothest-looking. Rally here is very good. Volume looks good. No upside resistance, you just have to worry about the downside. When a stock loses momentum, apply the 50-day MA, and start reducing when it touches that. Right now, 50-day MA is $135. Reduce if it hits $138, get out if can't hold above $110. Yield is 0.20%.
A trade, not buy and hold. Rates were supposed to come down, but they didn't. Use this to participate in upward price movement when yields go down. Highly volatile, can move 4-5% in a day.
Disclosure: He did go on a cruise and collected a $100 credit as a shareholder. Turnaround situation. Volatile. Building new boats and filling them up.
Not a growth stock, but loves the dividend. Part of the dividend income element of his portfolio, along with growth and steady-eddys.