Jeff Parent, chief investment officer at Castlemoore Inc.

Focus: Technical analysis

MARKET OUTLOOK

China, yield curve shape and interest rates differentials have been overshadowing other economic indicators.  Leading indicators like auto sales and new housing starts are in a normal range, maybe with some topping or slight declines, but not negative.  Positives are low unemployment and low interest rates.  Index action is positive.  Strength after bottoming at support levels indicates short and possibly medium-term continuation of the bullish trend this year.  I like the energy space and banks in Canada.  In the U.S. it’s a mixed bag, with no industry presenting itself strongly.  We’re not in a buy and hold market, so don’t forget the trader’s adage: cut your losses and let your winners run.

TOP PICKS

Jeff Parent's Top Picks

Jeff Parent of Castlemoore Inc. shares his top picks: Algonquin Power, BMO Equal Weight Banks Index ETF and EPAM Systems.

ALGONQUIN POWER (AQN.TO)

I like the renewable energy exposure and utility base.  Dividend is helpful. Chart looks great with nicely building trend.  Begin exiting below $16.40.

BMO EQUAL WEIGHT BANKS INDEX (ZEB.TO)

A deeply oversold sector that is ripe for inflows.  I can see this gaining between two to three dollars before year end, plus there’s a four per cent dividend.  Sell below $26.80.

EPAM SYSTEMS (EPAM.N)

This business IT company has been growing nicely for several years.  The chart looks good with indication of moving above 200 this year.   My average cost is $156. Sell below $170.

DISCLOSURE PERSONAL FAMILY  PORTFOLIO/FUND
AQN N N Y
ZEB N N N
EPAM Y N Y

PAST PICKS: Aug. 8, 2018

Jeff Parent's Past Picks

Jeff Parent of Castlemoore Inc. reviews his past picks: NFI Group, Seven Generations and Big Lots.

NFI GROUP (NFI.TO)

The recommendation was to sell below $48, which is what I did on Oct. 11, 2019. I would not buy this now.  Chart is looking poor.  It looks deeply oversold. But, wait until it crosses above its 50-day moving average before taking a position in it.

  • Then: $50.59
  • Now: $25.47
  • Return: -50%
  • Total return: -47%

SEVEN GENERATIONS (VII.TO)

Another reason why it’s important to have a trading plan.  I mentioned a $14.50 exit level and that’s what I did. Like most energy stocks, there is some good value here.  A bottoming formation is developing (again).  It is OK to take a small position using $6.20 as the new exit point.

  • Then: $16.18
  • Now: $7.28
  • Return: -55%
  • Total return: -55%

BIG LOTS (BIG.N)

While the past picks look like a 0-3 score, they were all good trades.  Exits were all made and the prices dropped quite a bit afterwards.  This one was a sell below $44 and that’s exactly what was done.  There’s no reason to buy this now.

  • Then: $47.41
  • Now: $21.21
  • Return: -55%
  • Total return: -54%

Total return average: -52%

DISCLOSURE PERSONAL  FAMILY PORTFOLIO/FUND
NFI N N N
VII N N N
BIG N N N

 

WEBSITE: www.castlemoore.com