Momentum Change ?

Friday’s very positive stock performance could signal a change in market psychology as autumn has arrived. Market opportunities should begin to unfold soon but caution is still recommended. As the deadline for Trust Units transforming into Corporations nears, I recommend gradually pulling out of this sector to await developments in the new year. This move will also highlight top paying dividend stocks including Telecoms, Financials & Pipelines.

Top Holding Recommendations include:

• Telecom: BCE, Rogers (RCI.B) & Telus (T)
• Financials: Bank of Montreal (BMO), CIBC (CM), Manulife (MFC), National Bank (NA), Royal (RY), Sunlife (SLF) & TD
• Pipeline: Enbridge (ENB) & TransCanada (TRP). Husky (HSE) might finally take off owing to high yield.

Resource Stocks should bounce back with growing market confidence. Top Holding Recommendations include:

• Precious Metals: Agnico Eagle (AEM), Goldcorp (G), Kinross (K), & Teck (TCK.B);
• Energy: Canadian Natural Resources (CNQ), Encana (ECA), Nexen (NXY), Suncor (SU), & Talisman (TLM).

Top Speculative Recommendations include: Research in Motion (RIM) & SXC Healthcare (SXC).

Trades I made this past week: Bought RIM @ $46.46 & sold @ $49.21 (5.9% gain), repurchased RIM @ $48.82 & sold @ $49.95 (2.3% gain).

Stock Recommendations to purchase on weakness include: Agrium (AGU), CNR & CP.

Income Recommendations:

• Preferred Shares: Bombardier (BBD.Pr.C & D), Brookfield Properties (BPO.PR.L) and Canadian Western Bank (CWB.PR.A).
• Corporate Bonds: Citigroup Finance Nov. 2012 @ 2.84%, Consumers Waterheater April 2014 @ 4.76%. YPG Holdings Strip Coupon Bonds 2018-2020 if held to maturity pay between 5.93% - 6.87%.

Buy on weakness – sell into strength. Good luck.