I’ve taken off the past number of weeks because this is a stock trading blog. As there really hasn’t been much to recommend for a trader to consider, there was theoretically nothing to write…
Trading Rule Number One: When all others are selling in a down market, smart traders should look to buy great companies that are being sold off along with the weak ones. Great Market Timers always buy when everyone is running for the hills (albeit it’s quite easy being brave if you’re only handling other people’s money…). Something is happening now that is going to make someone a lot of money in the next few months. Scared traders are being spooked out of the market. We certainly may not be at the bottom so no major positions are recommended immediately, but there are some good deals becoming available.
Great Market Leaders Coming Off Highs: In alphabetical order this would include: BCE (now paying 5.7% dividend), Bombardier (BBD.B), Canadian National Railway (CNR), National Bank (NA), & TD.
Great Companies Available at Discount Prices: In alphabetical order, great companies that may not have performed in recent months as well as those noted above: CIBC (CM), Canadian Natural Resources (CNQ), Canadian Pacific (CP), Encana (ECA), Royal (RY), Sunlife (SLF), Suncor (SU), & Talisman (TLM).
Great Companies To “Possibly” Watch for Further Declines Prior to Re-Purchasing: Canadian Oil Sands (COS), Crescent Point Energy (CPG) & Teck Resources (TCK.B).
Other Stocks of Interest: Power Corp. (POW) & Power Financial (PWF).
Long Shots to Watch: Research in Motion (RIM), Sino Forest (TRE), & yes, Yellow Media (YLO).
Worth Watching: Bank of Montreal (BMO), Scotia Bank (BNS), Manulife (MFC), & Pengrowth (PGF).
Watch the market very closely now for both getting out and in. Good luck.
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