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

MARKET OUTLOOK

In the media, there’s been a focus on bad news. This combined with markets reaching all-time highs is causing nervousness for many investors. The technicals tell a different story. From this perspective, we are seeing a bullish breakout. As long as we can stay above 3,030 on the S&P 500, the bullish trend is intact. With this in mind, focus on strong price momentum and sell out those with disappointing earnings. In Canada, the financials and especially the insurance companies, are doing well and have been acting as a contrast to the still-struggling energy sector. There’s still room in the banks even though they look overbought. I expect the fourth quarter to finish off well on both sides of the border.

TOP PICKS

ENBRIDGE (ENB:CT)

I bought this recently at $46.49. With earning out today, the stock looks poised to run up to the $55 resistance level. I would begin exiting at $47. The dividend is a nice bonus and probably accounts for a lot of the buying from yield-seekers.

CCL INDUSTRIES (CCL/B:CT)

A high-flyer from 2013, CCL took a big pause over the past few years, trading in the $52 to $67 range. Now closer to the bottom, this looks like a good entry point. I bought this at $57.18 and have expectations to see $65. I would sell if it goes below $55.

FIRST QUANTUM (FM:CT)

This is a risky stock. I bought this at $10.96 in mid-September and it caused a lot of headaches. It’s finally moving up nicely after the Oct. 28 earnings. I might add to my position, but would sell if it reaches $11.

PAST PICKS: NOV. 5, 2018

WEST FRASER TIMBER (WFT:CT)

• Then: $71.13
• Now: $57.56
• Return: -19%
• Total return: -18%

STANLEY BLACK AND DECKER (SWK:UN)

• Then: $123.78
• Now: $157.84
• Return: 28%
• Total return: 30%

COSTCO (COST:UW)

• Then: $234.45
• Now: $302.62
• Return: 29%
• Total return: 31%

Total return average: 14%

WEBSITE: castlemoore.com