Elliott Fishman's Top Picks: May 24, 2019

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

MARKET OUTLOOK

TSX: The TSX has been acting much better of late as it continues to build a base around 16,000. I expect much of the same going forward.

DOW: The Dow is mirroring the TSX, with a base building period going on. It continues to be extremely resilient although the sentiment in my opinion is lower.

S&P: The S&P is no different as it is extremely resilient and continues to build a base at its 50-week moving average of 2,776.

TOP PICKS

HOME DEPOT (HD.N)

On a straight technical look Home Depot continues to walk the line up, but recent selling pressure has sent the name to a rare 100-week moving average test of $182. Since 2011, Home Depot has had very few breakdowns below its 100-week moving average, so I wish to take advantage of this current test. A hold here and the old high of $215 is close.

BERKSHIRE HATHAWAY (BRKb.N)

Another name that’s having a rare test of longer-term support. Retailers overall have been weak and Berkshire is no exception. Technically great support at $198. A hold will send it back to $225.

MANULIFE FINANCIAL (MFC.TO)

Financials have been under pressure and Manulife is currently testing its 200-week moving average of $22.37. I will take my chances now. It does have history of breaking that support level, but always bounces back. As per usual, I’m looking for 10-per-cent upside from here.

PAST PICKS: MARCH 11, 2019

DOLLARAMA (DOL.TO)

• Then: $37.04
• Now: $43.05
• Return: 16%
• Total Return: 16%

PFIZER (PFE.N)

• Then: $41.50
• Now: $41.95
• Return: 1%
• Total Return: 2%

UNITEDHEALTH (UNH.N)

• Then: $243.15
• Now: $247.63
• Return: 2%
• Total Return: 2%

TOTAL RETURN AVERAGE: 7%

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