Robert "Hap" Sneddon is portfolio manager & technical analyst with CastleMoore Inc. His focus is technical analysis and macro portfolio strategy.
Infrastructure and civic construction projects are in a positive phase. The industrial sector, too, in general is beginning to heat up as investors rotate away from more defensive securities and into 'risk on' assets. SNC has a history of good management execution, expectations of an annual earnings increase of 55 per cent year-over-year, and the stock recently broke out of a short-term consolidation.
ProShares DB U.S. Dollar Index Bullish Fund
The U.S. dollar appears to have made a confirming bottoming pattern in October, with the loonie beholden to the risk on/risk off trade, where the risk on cannot quite catch. The first technical upside is approximately 20 per cent away and risk controls are near at hand, making the risk to reward excellent for what could be a long holding for Canadian investors.
Handicapping energy prices is tough; handicapping oil and gas storage and transportation is not. This industry should easily outpace GDP expectations of the TSX and S&P. The stock has a relentless bullish technical profile, is best in class and provides a decent yield. The recent Keystone pipeline issue is quietly bullish for Enbridge
Past Picks: Jan. 5, 2011
Bell Aliant Inc.
Total return: +11.82%
iShares DEX Long Term Bond Index Fund
Total return: +18.87%
Proshares Ultra Short Euro ETF
Total return: -3.10%
TOTAL RETURN AVERAGE: +9.20%
After a good run from lows in October, Western equity markets are due for a breather. Price action since the second week of January has seen markets typically open strong but close weak, suggesting booking some profits now in some of the defensive names. Assuming a bullish profile to the overall markets, favoured sectors going-forward are large cap, industrials, consumer discretionary and materials. Following the investments trend is considered more prudent at this time than trying to distill the European or macro-economic data points.
Compiled by Franklin Cameron, BNN Market Call Tonight