Don Vialoux, technical analyst at TimingTheMarket.ca and EquityClock.com

Focus: Technical analysis and seasonal investing
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MARKET OUTLOOK
U.S. equity markets are expected to move slightly lower between now and early April, typical of performance in the year after a first-term president is elected. The shallow correction is related to uncertainties that frequently occur when new cabinet members are approved and Congress begins to introduce new legislation. Thereafter, U.S. equity markets are expected to move higher to mid-May.

In contrast, Canadian equity indices are expected to move slightly higher until early March thanks partially to higher commodity prices.

TOP PICKS

ETFS PHYSICAL PLATINUM SHARES (PPLT.US)
Demand for platinum used in catalytic converters in cars remains strong. The new car-buying season in spring is approaching. Seasonal influences for platinum are positive from mid-December to late April. A favourable outlook for precious metal prices during the next two to three months also helps.

ISHARES S&P/TSX GLOBAL GOLD INDEX ETF (XGD.TO)
The Trump presidency is expected to trigger a period of investor uncertainty for equity markets during the next two to three months. Gold and gold equities thrive on uncertainty in equity markets. The gold equity sector currently is in a period of seasonal strength from mid-December to early March. The end of the period of seasonal strength corresponds to the annual Prospectors & Developers Conference in Toronto (March 5-8th). Buy on rumor, take profits on news!

CASH
Equity market uncertainty related to the installation of the Trump presidency implies a cautious investment stance during the next two to three months. Watch for buying opportunities on weakness in sectors that will benefit from Trump’s new mandate.
 

PAST PICKS: NOVEMBER 7, 2016

ISHARES TRANSPORTATION AVERAGE ETF (IYT.US)
Continue to hold/add seasonal influences, remain positive to early May.

• Then: $149.91
• Now: $166.19
• Return: +10.85%
• TR: +11.10%

MARKET VECTORS AGRIBUSINESS ETF (MOO.US)
Take seasonal profits into mid-February.

• Then: $50.05
• Now: $53.27
• Return: +6.43%
• TR: +8.72%

BMO EQUALLY WEIGHTED GLOBAL METALS ETF (ZMT.TO)
Continue to hold/add. Seasonal influences remain positive to early April.

• Then: $8.52
• Now: $10.20
• Return: +19.71%
• TR: +21.01%

TOTAL RETURN AVERAGE: +13.61%