Elliott Fishman's Top Picks: June 25, 2018

Elliott Fishman, director of U.S. and international equity trading at the Trading Services Group, Scotia Wealth
Focus: Technical analysis

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MARKET OUTLOOK

Never have I ever seen a market yawn off all bad news. In years previous, if half of today’s headlines had come out, the indexes would’ve been in for a wild ride.

Both the Dow and the S&P have looked quite toppy (The Dow at 25,000 points and the S&P at 2,800), but for the first time in quite some time the indexes have started to test short-term support (their 50-week moving averages).

I believe the markets have started to form a top and therefore will begin working lower. A quick 5 per cent off sale would be both healthy and needed to confirm that the indexes belong at these lofty levels. They just have a stale, been-here-too-long type of feel to me.

The TSX is coming off a long lull of testing both its 50- and 100-week moving averages and has since flirted with all-time highs. Commodities have played a huge part, with renewed big volumes courtesy of cannabis. To stay up here, one would have to believe in the commodity group. Nice to see its current strength: it’s been long in coming.

TOP PICKS

MORGAN STANLEY (MS.N)

The U.S financial group has come back down to earth a bit lately. They’re currently testing their 50-week moving averages. Morgan Stanley is actually about to test its 100-week moving average of $45. It’s currently trading at $48. I’d be a buyer of the stock now with an easy 10 per cent gain should it hold. Next wave backup could have $60 on it. At worst, the safety net waits at $42.

TATA MOTORS (TTM.N)

This is just a stab at its current awful form. I don’t usually choose autos unless they’re sinking. Tata Motors has been sinking, with current levels having it at 2016 lows. I’m playing a bounce; $29 would be my target price on a hold.

COCA-COLA (KO.N)

The company looks to be building a base around $43 and extremely range-bound. Yet historically, Coca-Cola finds strength at these levels. With some luck, it gets back up to the high $40s.

PAST PICKS: MAY 10, 2018

UNDER ARMOUR (UAA.N)

• Then: $18.56
• Now: $22.31
• Return: 20%
• Total return: 20%

WALMART (WMT.N)

• Then: $82.69
• Now: $86.47
• Return: 5%
• Total return: 5%

MGM RESORTS (MGM.N)

• Then: $33.37
• Now: $29.27
• Return: -12%
• Total return: -12%

Total return average: 4%