Elliott Fishman director of U.S. and international equity trading at Scotia Wealth
Focus: Technical analysis

MARKET OUTLOOK

DOW 30: I find it hard to believe the NYSE goes up on any day with all we have to digest on a regular basis. The index has actually recovered its choppy ending to 2018. Support on the downside would be 22,000 with the 50-week moving average ultimately at 20,632. It would be considered toppy at 25,000, so as a trade I would be taking wins and or selling into this current strength.

S&P 500: Very similar to the Dow, as it tested support only to rally back. The 50-week moving average is 2,340 but short-term support would be at 2,500. As with the Dow, it looks very toppy here and I would be a seller.

TSX: It recently survived quite the drop, actually taking the index below its 100-week moving average of 14,046 and its 50-week of 14,926. Nice back-from-the-dead rally in crude and gold is back up above $1,300. It’s toppy at 16,000.

TOP PICKS

EMERSON ELECTRIC (EMR.N)

Recent sell off makes Emerson is quite attractive trade as it has been testing support of $58. Expect a nice bounce back above $60. $70 will be the first stop. The company is usually quite steady with its 3 per cent dividend and looks to have righted the ship revenue-wise.

ACTIVISION BLIZZARD (ATVI.O)

Huge recent selloff has placed Activision Blizzard into “buy” territory. It’s now down from over $80 to today’s level of $46. The 50-week moving average is $47, which it’s testing currently. A hold takes it back to $60. A miss takes it back to $40. Always looking for the next blockbuster video game, but as a stock it’s at the right level.

SUNCOR (SU.TO)

Suncor is a play on the recent strength and back-from-the-dead type of hype for a whole pile of these names. This is an interesting spot to become a buyer of Suncor as it sits just above its 50-week of $40.83. Bottom end of the old head and shoulder formation, easy high $40s and if all goes right, $50.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
EMR N N N
ATVI N N N
SU N N N

 

PAST PICKS: NOV. 16, 2018

DOLLARAMA (DOL.TO)

  • Then: $35.15
  • Now: $35.42
  • Return: 1%
  • Total return: 1%

MOHAWK INDUSTRIES (MHK.N)

  • Then: $123.52
  • Now: $128.00
  • Return: 4%
  • Total return: 4%

HUDSON’S BAY (HBC.TO)

  • Then: $7.48
  • Now: $7.72
  • Return: 3%
  • Total return: 3%

Total return average: 3%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
DOL N N N
MHK N N N
HBC N N N