Jeff Parent is a portfolio manager at Quadrexx Asset Management. His focus is on technical analysis.
I do not own, but will try and accumulate under $2.70. This is a small company in a growth area. Chart looks fantastic, with a nice recovery back above $2. Performing financially. May be able to go to $3.20. Sell below $2.40.
I do not own, but will accumulate under five. This is another small company which has found a bottom and may become a growth story. The recent quarterly earnings were good. Exit under $4.20. Look for a rally on a breakout to $6.
Declining fundamentals combined with a clear price trend reversal lead to a short recommendation. Looking for a drop to $10.50 which could come on a dividend cut. Keep in mind that shorts pay dividends, which are currently 8.333 cents per month. Buy back above $13.50.
Past picks: Aug. 22, 2011
VelocityShares Daily Inverse VIX Short Term ETN
Total return: +95.33 per cent
Total return: +7.14 per cent
Total return: +11.82 per cent
Total return average: +38.10 per cent
While the S&P500 has done well, it may be stalling on declining volumes around the 1,410 level. It would be encouraging to see a breakout above 1,450. Meanwhile, the TSX has been held back by the materials and energies for the past 12 months causing the index to lag. If the TSX can build some momentum around the year end seasonality, it is possible to see a rally move the index above 13,000. The trigger point would be a sustained move above 12,000.
Watch Mr. Parent on BNN.