Jeff Parent, chief investment officer at Castlemoore Inc.
Focus: Technical analysis

MARKET OUTLOOK

It’s decision time for the markets. Do they break out into record territory, or pull back? The case for a pullback is strong, especially in the U.S. The U.S. indexes are up over 250 per cent from 2009 in what’s almost a constantly increasing rally. We’re now at the level of the two peaks seen last year, creating a potential triple top or head-and-shoulder reversal formation. I think there’s enough momentum to carry us into new highs before the summer. Should the momentum fail and levels in the S&P 500 drop below 2,700, then I’ll reverse my opinion. I’m about 50-50 U.S.-Canadian stocks, and underweight banks and oils, but am thinking about repositioning into these groups soon. There’s not a lot of economic evidence of a bearish move in the short or medium term.

TOP PICKS

TTM TECHNOLOGIES (TTMI.O)
Bought around $12.04.

After a long slide from $20, it found a bottom at $9 and retraced nicely above $11. It’s been consolidating, but looks poised to breakout to possibly $14.50. This is a cup-and-handle formation. Sell below $11.

EXPEDITORS INTERNATIONAL (EXPD.O)
Bought around US$75.17.

Ranks well fundamentally. It’s been consolidating in US$70-US$75 range and begun to break out, hitting an all-time high this week. If it can continue the momentum, this may hit US$85 soon. Sell below US$70.

ELECTRA MECCANICA VEHICLES CORP (SOLO.O)

A recent listing on NASDAQ and analysts are beginning to cover it. This company is poised to gain traction. It’s very risky business and there’s a lot of execution risk, but for a speculative investor, this may be a good addition to a portfolio. Technically, the spikes in volume and price indicate early adopter interest. I would expect sequential good news pops in price. On the downside, start selling below US$2.70.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
TTMI Y Y Y
EXPD Y Y Y
SOLO N N N

 

PAST PICKS: MAY 31, 2018

CAREER EDUCATION (CECO.O)

  • Then: $15.39
  • Now: $17.14
  • Return: 11%
  • Total return: 11%

DOLLARAMA (DOL.TO)

  • Then: $149.65
  • Now: $38.64 (stock split 3-for-1)
  • Return: -23%
  • Total return: -23%

NANOMETRICS (NANO.O)

  • Then: $41.97
  • Now: $31.50
  • Return: -25%
  • Total return: -25%

Total return average: -12%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
CECO Y Y Y
DOL N N N
NANO N N N

 

WEBSITE: castlemoore.com