Comments on: Tech Talk for Monday November 2nd 2009

By: Don Vialoux

Don Vialoux — Mon, 02 Nov 2009 21:11:49 +0000

Hi Fred. The word “rule” probably was a bit strong. “Guidline” is more accurate. It’s based on a recent study done by Brown Brothers Harriman showing that the average recovery by the S&P 500 Index following a recession (based on data since 1932)is 53.7%. This time the S&P 500 Index gained about 60% from its March low. The average correction following the recessionary recovery peak was 12.2% (Median was 11.3%). Hence, the 12% guidline.

By: Don Vialoux

Don Vialoux — Mon, 02 Nov 2009 21:04:10 +0000

Hi Jerry A. Viterra is considered as an Agriculture stock because it serves the Agriculture community. It is included in Claymore’s Agriculture ETF (Symbol: COW). It also could be considered as a consumer staple stock under S&P’s classification. Seasonality studies suggest that the stock is more closely associated with seasonality in the ag sector.

By: Don Vialoux

Don Vialoux — Mon, 02 Nov 2009 20:58:19 +0000

Hi David. Sorry, no inverse to XSP, just a double inverse.

XMA looks like an interesting way to invest in the seasonal play in the metals and mining sector. Additional comments are offered in Brooke Thackray’s November investment report. The trade is lining up nicely, but its not there yet.

By: Don Vialoux

Don Vialoux — Mon, 02 Nov 2009 20:55:43 +0000

Hi Richard. Just confirming that AGU currently has support at $50. That level also is near its 200 day moving average, another possible indicator of support.

By: Don Vialoux

Don Vialoux — Mon, 02 Nov 2009 20:51:59 +0000

Hi Heinz. OOOPs! Busy fingers. 970 is correct (Not 9700).Will adjust.

By: Richard

Richard — Mon, 02 Nov 2009 20:31:54 +0000

Hi Don,

With reference to your comments on the next period of seasonality for Gold can you please elaborate on what to look for in charts when you speak about base building? Thanks again.

Richard

By: Fred

Fred — Mon, 02 Nov 2009 20:03:44 +0000

Don, your writting this morning, several times, referred to the 12% rule which is new to me. Is this a possible downside risk as opposed to a support level? And can you point me to some further information so I can understand it better? I have read several books includeing Thackray’s 2009 Investor’s Guide and am about to order the 2010 version. And I have been following your blogs for over a year, but I still consider my learning curve as steep (on a long term positive trend).

Any help you can provide would be appreciated.

By: Jerry A

Jerry A — Mon, 02 Nov 2009 18:03:47 +0000

Hi Don,

Would you consider Viterra as an agricultural or consumer staples stock? It does not seem to benefit from agricultural seasonality. Do you think it’s because of its fundamentals or is it protectionism? Any opinion on intermediate term outlook based on technicals?

Thanks.

By: David

David — Mon, 02 Nov 2009 17:39:12 +0000

Hi Don,

Are the metals & mining stocks good to buy for November? If so would XMA.TO a way to play the mining stocks?

By: David

David — Mon, 02 Nov 2009 17:36:19 +0000

Is there an inverse Canadian ETF for XSP.TO?