Elliott Fishman, director of U.S. and international equity trading at Scotia Wealth’s Trading Services Group
Focus: Technical analysis
MARKET OUTLOOK
The S&P 500 tested the 100- week moving average of 2,590 and held. Currently it’s testing resistance of 2,756. The index looks poised to stay volatile with a downward bias.
The Dow has just begun testing its 50-week moving average of 25,129. It looks toppy as well and should start a downward bias heading to its 100-week moving average of 23,300 as a target.
The TSX has been testing longer-term support levels. The 200-week moving average is 14,932; it looks way more appetizing than its U.S. counterparts. Oil, gold and financial stocks have been weak. Any turn at all on commodities and the index is ripe for a move back. Upward bias for me.
TOP PICKS
DOLLARAMA (DOL.TO)
Recent selloff has Dollarama below its 200-week moving average of $36.12. Our target back up would be its 10- week moving average of $44.35.
MOHAWK INDUSTRIES (MHK.N)
A complete disaster. The company’s latest earnings report actually had “YUK” as the headline. Analyst drops are the perfect storm for buying. Mohawk has been around since the 1800s. It’s a straight oversold technical play: a hold here will bring a massive return. The 200-week moving average is $208.98. The stock is trading at $123, which is down from $250 this year.
HUDSON’S BAY (HBC.TO)
Staying with companies that can trace their roots back to the 1800s, this is a “retailer rebounding” play. Quite a few of HBC’s U.S. counterparts (Macy’s, Nordstrom) have had big bounces off of life support. Last year, HBC was a target of shareholder activists citing the current low prices. The 50-week moving average is $10; that will be the first stop.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| PZZA | N | N | N |
| PM | N | N | N |
| LNR | N | N | N |
PAST PICKS: AUG. 28, 2018
PAPA JOHN’S INTERNATIONAL (PZZA.O)
- Then: $45.84
- Now: $58.92
- Return: 29%
- Total return: 29%
PHILIP MORRIS (PM.N)
- Then: $79.50
- Now: $86.33
- Return: 9%
- Total return: 10%
LINAMAR (LNR.TO)
- Then: $57.66
- Now: $48.63
- Return: -16%
- Total return: -16%
Total return average: 8%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| PZZA | N | N | N |
| PM | N | N | N |
| LNR | N | N | N |
WEBSITE: https://www.scotiawealthmanagement.com/ca/en/home.html
Advertisement