Bill Carrigan is technical analyst with Getting Technical Info Services. His focus is on technical analysis.
Top Picks:
Linamar Corp
A company that makes components for the booming auto industry. It's a thin trader just breaking up out of a large symmetrical triangle.
ShawCor
A company that makes components for the pipeline industry. It's a thin trader that is just breaking out of a huge inverse head and shoulder formation.
Encana
Canada' most hated large-cap energy stock. A contrarian play on a natural gas recovery Just completed a rare nine-month "five wave bear."
Past Picks: Sept. 30, 2011
BMO Equal Weight US Banks ETF
Then: $9.90
Now: $12.04
Total Return: +22.17%
BMO Nasdaq 100 Equity Hedged To CAD Index ETF
Then: $16.62
Now: $18.91
Total Return: +14.51%
iShares S&P/TSX Capped Energy Index Fund
Then: $15.13
Now: $17.76
Total Return: +17.84%
Total Return Average: +18.17%
OUTLOOK
Most global stock bourses have completed a short six-month bear formation that typically follows a powerful rebound (which ran from March 2009 to April 2011). We are now in the early stages of a new bull market that should extend through 2012 and 2013. A bull market requires leadership and this one will be led by global recovery-sensitive stock sectors such as the technology sector and the industrial sector. The companies to own are those who make "hard" things. Things that have to be painted, lubricated and transported by pipeline, trains and ships. This rules out "soft" sectors or service companies such as retail, telecom and financial services.
Compiled by Franklin Cameron, BNN Market Call Tonight
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