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

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MARKET OUTLOOK

The markets are finding buyers. It’s not definitive technically since we’re not making new highs, but there is a short-term uptrend developing from the April lows. Enthusiasm in volatile areas like the Internet stocks means investors are willing to take on risk. Key support levels in the U.S. are 2,660 for the S&P 500 and 24,100 for the Dow Jones. Canada is recovering nicely from their April lows, with a big part of that due to the energy component. The recent pullback we’re seeing now in this sector could be a buying opportunity with potential for a continuation into the summer. Financials led by Royal Bank are lagging and haven’t yet seen a lot of support at current levels. This could slow down, but not stop the TSX Composite from breaking into record territory.

TOP PICKS

CAREER EDUCATION CORP (CECO.O)

This is a turnaround and earnings momentum situation. Chart shows an uptrend with steady gains. Use $14 as a reduce and $13 as an exit point

DOLLARAMA (DOL.TO)

This has had a nice pullback and is trading at a nice support level. I’m looking for a $10 gain. Reduce below $146 and sell at $143.

NANOMETRICS (NANO.O)

Nanometrics had a great quarterly earnings report after trading in a tight $25 to $27 range for a year, which propelled the stock to recent high level. The potential to move higher is good after a pause. This is risky, so set $35 as a reduce level and $30 as an exit. Take a small position only.

 

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

 

PAST PICKS: APRIL 10, 2018

KEYERA (KEY.TO)

Keyera was $35.03 and paid out 28 cents dividend since April 10. It continues to look good. It might be able to go to $38. Use $33 as a stop.

  • Then: $34.82
  • Now: $36.22
  • Return: 4%
  • Total return: 5%

WELLS FARGO (WFC.N)

Was $52.62 and paid out 39 cent dividend. It continues to look good despite pullback on Tuesday. I’m looking for $39. Use $51.80 as a stop.

  • Then: $52.62
  • Now: $54.06
  • Return: 3%
  • Total return: 4%

GRAY TELEVISION (GTN.N)

The stock was at $11.85. It doesn’t look interesting anymore. If you’re holding it, I would sell and redeploy the funds.

  • Then: $11.85
  • Now: $10.70
  • Return: -10%
  • Total return: -10%

Total return average: -0.3%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
KEY N N N
WFC N N N
GTN N N N

 

WEBSITE: www.castlemoore.com