Comments on: Tech Talk for Thursday January 28th 2010

By: AF

AF — Fri, 29 Jan 2010 15:50:40 +0000

Hi David, I think it make sense if you are hold those ETF in an registered account in most brokerage in Canada. You saved the forex fee to buy and sell in USD. So instead of 2%(buy & sell CAD->USD and vice versa), you paid 0.1% for the whole transaction each year. Please correct me if I am wrong.

By: Don Vialoux

Don Vialoux — Fri, 29 Jan 2010 00:59:06 +0000

Hi David. An unhedged strategy makes sense as long as the Canadian Dollar is stable to slightly lower relative to the U.S. Dollar. Please check out comments and the seasonal chart on the Canadian Dollar in the Monday January 25th Tech Talk report. Historically, the Canadian Dollar has weakened relative to the U.S. Dollar from January to March.

By: Don Vialoux

Don Vialoux — Fri, 29 Jan 2010 00:52:39 +0000

Hi FTSE. Just confirming that the Russell 2000 Index (the most widely followed small cap index in the U.S.) continues to outperform the S&P 500 Index. Retention of Small Cap ETFs and related stocks until the end of the period of seasonal strength in early March is recommended.

By: Don Vialoux

Don Vialoux — Fri, 29 Jan 2010 00:49:27 +0000

Hi Freddybuoy. Sell signals are virtually the opposite to buy signals: A combination of Stochastics falling below 80%, RSI falling below 70%, MACD rolling over from above the 0 line, declining strength relative to its benchmark and at least one day of trading below a previous trading range.

By: Don Vialoux

Don Vialoux — Fri, 29 Jan 2010 00:46:44 +0000

Hi $$$. Downside risk for the TSX Composite Index is to support at 10,745 and to its 200 day moving average at 10,856. Short term momentum indicators are oversold, but continue to trend lower. No sign of a bottom yet. Equities on both sides of the border are in a “sell on news” mode implying that a significant recovery is unlikely until the earnings report season is over (another 2-3 weeks). Thereafter, a significant recovery into May is anticipated. The charts will let us know. Stay tuned and we will offer guidance.

By: Don Vialoux

Don Vialoux — Fri, 29 Jan 2010 00:39:38 +0000

Hi ES. CCI currently has a positive intermediate technical profile. Intermediate trend is up. Strength relative to the S&P 500 Index remains positive. The stock continues to trade above its 50 and 200 day moving averages. Support is indicated just below $35.00.

By: Don Vialoux

Don Vialoux — Fri, 29 Jan 2010 00:36:22 +0000

Hi Annette. RBA currently has a negative intermediate technical profile. Intermediate trend is down. Strength relative to the TSX Composite is negative. The stock trades below its 50 and 200 day moving averages. The stock touched a nine month low today. Short term momentum indicators are oversold and trying to bottom. A recovery to its 50 day moving average at $24.26 could provide an opportunity to seek a better investment opportunity.

By: David

David — Thu, 28 Jan 2010 22:31:58 +0000

The Canadian Capitalist writes “It is interesting to note that the new iShares Emerging Market ETFs do not hedge the currency exposure but still charge a 0.10% to 0.15% extra fee simply to hold another US-listed ETF. Assuming an investor wants to add China or India to their portfolio, why wouldn’t they simply buy the US-listed version and save a fraction of the fees?”

http://www.canadiancapitalist.com/six-new-etfs-from-ishares/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+ccapitalist+%28Canadian+Capitalist%29

By: ftse

ftse — Thu, 28 Jan 2010 17:51:52 +0000

Hi Don:
Your comments on small cap stocks will be much appreciated while this correction appears to deepen further than most anticipated. According to your previous analysis it is now the seasonality for the small cap group which is on the other hand continues to correct. I am watching closely at the small cap companies that belongs to the groups that suppose to play well between now and March as suggested by Brooke Thackray.

By: Freddibuoy

Freddibuoy — Thu, 28 Jan 2010 17:14:51 +0000

Don, in yesterday’s comments, you answered Huy’s question on how to determine an entry point.
Excellent! And thank you for that – it filled out a few more of the gaps in my knowledge.

As a corollary, how do you determine an exit point?