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

MARKET OUTLOOK

Usually the markets can be categorized as being in an early-movement, mid-cycle or emotionally-driven phase. These are distinctive phases with a little overlap. Over the past year, it looks like all these phases are happening at the same time. With a lot of whipsawing, quick-ending rallies and sharp reversals from bottoms, it’s hard to navigate through the markets. On one side, many are anticipating a slowdown in the economy due to increasing interest rates. But the economy isn’t hitting a wall, so the outlook might not be bad. With the S&P 500 above my resistance of 2,627, I’m bullish in the short term. As with 2018, the best course of action this year is to put tight stops on new positions, be willing to take profits and be very diversified. There are no strong industry or market factors that would indicate a long-term bullish move is in the making.

TOP PICKS

PROGRESSIVE (PGR.N)

Progressive ranks well fundamentally. It found good support at $59, it’s moving higher and has the potential to move into the low $70s again. Use $62 as a reduce/exit level.

ENCANA (ECA.TO)

Like so many energy companies, there are many bargains to be found. Encana has moved up from very oversold levels and is finding footing at $9. Buyers will like the market cap and relative value. Resistance is present at $11. Use$ 8.70 as an exit point.

CVS HEALTH (CVS.N)

CVS is trading at very good support at $65 and volume is mildly positive. Fundamentals are also positive. This has $8 to $10 potential upside before it hits short-term resistance. Use $63.80 as an exit level.

PAST PICKS: MARCH 13, 2018

HCP INC (HCP.N)

• Then: $23.00
• Now: $30.76
• Return: 34%
• Total return: 40%

RAYONIER (RYN.N)

• Then: $35.49
• Now: $30.16
• Return: -15%
• Total return: -12%

CANADA GOOSE HOLDINGS (GOOS.TO)

• Then: $43.17
• Now: $65.94
• Return: 53%
• Total return: 53%

Total return average: 27%

WEBSITE: www.castlemoore.com