Elliott Fishman, director of U.S. and international equity trading at Trading Services Group, Scotia Wealth
Focus: Technical analysis
The Dow is at record levels. I have been on the Dow 20,000 team for months but now that we are here, it’s reward time. Stocks do not typically behave this way; the market has gone up over 2,000 points in a very short period of time. Sectors like U.S. financials, for example, have had one-year moves in a period of weeks. If as investors you were fortunate enough to be part of this ride, please takes gains and reward yourselves, but don’t be greedy.
Overall, I still believe this market has upside, but must consolidate and confirm such a meteoric advance. Sadly, support sits in the high 18,000s which is quite a way from current levels.
Same story as the Dow: A re-test of 2,100 would be healthy. Most of the questions we receive as a desk circle around what to do once money is taken off the table. If a stock hasn’t risen on a 2,000 point advance, when will it (unless it’s gold related)?
MGM RESORTS (MGM.N) – Current level at US$28.94.
Unlike the other major gaming stocks, MGM has had a very gradual push higher. The stock has built a very nice support level (base) at US$25. I believe US$40 is attainable — it’s just a more slow and steady type so you’re probably looking at 12 months.
NIKE (NKE.N) – Current level at US$51.80.
A rare break down through both its 50-week ($55.85) and its 100-week ($56.13). It’s now at 2014 levels and has shown resilience at the current levels. US$60 target.
TARGET CORP (TGT.N) – Current level at US$72.24.
Had trouble clearing $80 to the upside and then sold off bigtime to current levels of $72. Short-term moving levels could cause some turbulence on its chances of getting back to $80, but the stock has proven multiple times that $70 million is great support to the downside. $80 target.
PAST PICKS: JUNE 1, 2016
MACY’S (M.N) – Added it at US$33.03. Sold at US$40.
- Then: $33.03
- Now: $35.23
- Return: +6.66%
- TR: +10.12%
EBAY (EBAY.O) – Added it at US$24.07. Sold at US$30.
- Then: $24.07
- Now: $29.84
- Return: +23.97%
- TR: +23.97%
SPDR GOLD TRUST ETF (GLD.US) – Added it at US$115.94. Sold at US$114.75.
- Then: $115.94
- Now: $110.47
- Return: -4.71%
- TR: -4.71%
TOTAL RETURN AVERAGE: +9.79%