Civil and political tensions are never good for the overall market and it appears that the unrest will continue indefinitely as other neighboring countries’ citizens decide to take advantage of the mood of the times. However, small individual events can trigger strong temporary upwards movements in the markets. It appears that sooner rather than later, the Egyptian president will be required to leave office. That event will trigger a big immediate and very temporary surge forward. In the meantime, there are certain sectors which one can profit with on short term moves. These are energy and to a lesser degree, precious metals.
Short Term Energy Recommendations: Canadian Natural Resources (CNQ), & Talisman (TLM). In the secondary category, keep a watch on Encana (ECA), Nexen (NXY) & Suncor (SU) which also hit a new 52 week high on Friday. Other interesting stocks in the sector include: Baytex (BTE), Cenovus (CVE) & Vermillion (VET). Baytex (BTE) also hit a new 52 week high on Friday while the other two stocks came very close.
Short Term Precious Metal Recommendations: Agnico Eagle (AEM), Barrick (ABX) & Goldcorp (G). Of secondary interest, Eldorado (ELD) & Iamgold (IMG).
Some stock trades I made this week follow upon my recommendations of last Sunday. Namely having seen agriculture giants pop out of the gate on Monday, I waited for a pullback on Tuesday to purchase Potash (POT) @ $163.10 and sell it on Thursday @ $174.99 (7.28% gain). It closed the week at $173.99. Similarly, I purchased on Tuesday Agrium (AGU) @ $85.47 and sold it on Thursday @ $89.99 (5.29% gain). I repurchased it on Friday @ $87.85 and it closed the week @ $88.02. Two weeks ago I purchased Canadian Natural Resources (CNQ) @ $42.14. Friday’s closing price was $43.08.
Other Stocks to Watch include: Note that after hitting new 52 week highs on Friday, both Canadian National Rail (CNR) & Canadian Pacific (CP) came off quite dramatically particularly noting that they’re not traditionally volatile stocks. Viterra (VT) has been hot. Teck Resources (TCK.B) not so much but it can move quite rapidly on temporary good news. Both BCE & Telus (T) have been strong, each hitting new 52 week highs. Buy them on dips for income. Looks like another volatile week ahead. Good luck.
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