Jeff Parent, chief investment officer at Castlemoore Inc.
Focus: Technical analysis

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MARKET OUTLOOK

Volatility will likely continue this quarter. To put it into perspective, in 2017 on the S&P 500 index, there were seven moves greater than 1 per cent; this year, there have been 28. Volatility doesn’t lead to direction though, and this makes it a difficult trading environment for longer-term investors. We’re possibly in a trading range for a while, defined by the high and low levels of the year. Since we’re at a bottom of that trading range, short-term opportunities may be found in oversold stocks and industries.  One of the biggest oversold industries in Canada right now is energy. In the U.S., one of the groups is global banks. It may be possible to make up to 10 per cent gains in these industries on a short-term reversion trade. Discipline is important. Use the recent lows as exit points or risk significant losses if the lows are broken.

TOP PICKS

Jeff Parent's Top Picks

Jeff Parent of Castlemoore Inc gives his outlook for shares of: Keyera, Wells Fargo and Gray Television.

KEYERA (KEY.TO)

Keyera is an energy-related company in the oversold category. There seems to be buying support after a decline that began in June last year. The reduce level is $32.40 and exit at $31.70. Upside is $38.

WELLS FARGO (WFC.N)

Another oversold stock. This large cap has had some negative news and their next report date is this week, adding up to volatility. Being at the low end of the trading range presents a $5 plus potential gain.  Use $51 and $49 as reduce and exit levels.

GRAY TELEVISION (GTN.N)

Added for diversification, this is a small-cap value idea. Trading down from a February 2018 high, this looks like it may have hit a short-term bottom.  Potential is for a move-back to $14.50.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
KEY N N N
WFC N N N
GTN N N N

 

PAST PICKS: MARCH 13, 2018

Jeff Parent's Past Picks

Jeff Parent of Castlemoore Inc reviews his past picks: HCP Inc, Rayonier and Canada Goose Holdings.

HCP INC (HCP.N)

  • Then: $23.00
  • Now: $23.02
  • Return: 0.08%
  • Total return: 0.08%

RAYONIER (RYN.N)

  • Then: $35.49
  • Now: $35.95
  • Return: 1.29%
  • Total return: 2.01%

CANADA GOOSE HOLDINGS (GOOS.TO)

  • Then: $43.17
  • Now: $44.65
  • Return: 3.42%
  • Total return: 3.42%

Total return average: 1.83%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
HCP N N N
RYN N N N
GOOS N N N

 

WEBSITE: www.castlemoore.com