Comments on: Tech Talk for Thursday November 5th 2009

By: Bubbles

Bubbles — Thu, 05 Nov 2009 20:33:38 +0000

Don, is there a hedge equivalent for XLY-U (discretionary)
thanks

By: Don Vialoux

Don Vialoux — Thu, 05 Nov 2009 19:55:05 +0000

Hi Marc. Given the current intermediate downtrend in the U.S. Dollar and given its period of seasonal weakness until the end of the year, the preferred strategy is to own hedged products when investing in U.S. equity market indices (e.g. XSP and hedged CLU).

By: AW

AW — Thu, 05 Nov 2009 19:11:22 +0000

David, I do not think Don said he sold out of gold… it is Castlemore who did so.

By: Don Vialoux

Don Vialoux — Thu, 05 Nov 2009 19:09:24 +0000

Hi Richard. TD is welcome to its opinion on the Ag sector. My analysis based on fundamentals, technicals and seasonality is that the sector remains in a period of seasonal strength.

By: Don Vialoux

Don Vialoux — Thu, 05 Nov 2009 19:07:53 +0000

Hi Double D. Tech Talk uses a combination of technical, fundamental and seasonality analysis when making investment suggestions. Each is given an equal weight. The analysis frequently starts with seasonality analysis.

By: Don Vialoux

Don Vialoux — Thu, 05 Nov 2009 19:04:57 +0000

Hi Jordy. Try http://www.kitco.com. It provides reliable information and comment on base metals and base metal inventories.

By: Don Vialoux

Don Vialoux — Thu, 05 Nov 2009 19:03:50 +0000

Hi James. Phases of the market are based on the Up/Down ratio published each day on this site. The Up/Down ratio is one of several technical indicators that are useful for determining entry and exit points in markets and sectors (albeit a fairly reliable indicator over the years). In recent weeks, the Up/Down ratios for S&P 500 and TSX Composite stocks have moved down from eqregiously overbought levels and currently are near the 2.00 level(versus over 13 six weeks ago for S&P 500 stocks).

By: Don Vialoux

Don Vialoux — Thu, 05 Nov 2009 18:58:30 +0000

Hi David and Smita. Sorry, Tech Talk does not offer short recommendations. Sectors and markets tend to go through periods of strength at different times of the year based on annual recurring events. Outside of the period of seasonal strength markets and sectors show random performance (sometimes up and sometimes down).

By: Don Vialoux

Don Vialoux — Thu, 05 Nov 2009 18:55:45 +0000

Hi Richard. Another way to play the S&P 500 Index is through xsp. It tracks the S&P 500 Index and is hedged against a decline in the value of the U.S. Dollar.

By: Fred

Fred — Thu, 05 Nov 2009 18:55:03 +0000

Looks to me, newbie that I am, that XSU.TO (Russell 2000 hedged to $CDW) has just completed a short term reverse head and shoulders pattern.