Comments on: Tech Talk for Friday January 29th 2010

By: Jan Mohammed

Jan Mohammed — Mon, 01 Feb 2010 15:40:16 +0000

Hi Don, Thanks

By: AW

AW — Mon, 01 Feb 2010 07:40:17 +0000

Thanks a lot, Don.

By: Don Vialoux

Don Vialoux — Mon, 01 Feb 2010 04:19:50 +0000

Hi LLL. Just confirming that technicals for Teck continue to look rather grim despite extent of its recent decline. The stock recently fell below its 50 day moving average. Short term momentum indictors continue to trend down. On balance volume data shows that the stock is being distributed by large holders. Strength relative to the TSX Composite remains negative. Best to wait at least until short term technical indicators show signs of bottoming.

By: Don Vialoux

Don Vialoux — Mon, 01 Feb 2010 04:15:14 +0000

Hi Richard. Tomorrow’s Tech Talk reviews Brooke Thackray’s comments on the “January effect”. The data shows that 75% of the time ” As goes January, so goes the rest of the year” works. My own thoughts is that performance in January has a high correlation with performance with the rest of the year, but a causal relation does not exist. In other words, it’s like the Super Bowl indicator. Interesting data, but with no relevance when coming to making an investment decision.

By: Don Vialoux

Don Vialoux — Mon, 01 Feb 2010 04:09:45 +0000

Hi Roy. The bottom line comment in tomorrow’s Tech Talk is the same as the bottom line comment included in Tech Talk for January 25th. Following is the comment:

The “hoped for” short term correction has arrived. The correction will set up seasonal trades in several sectors including silver, mines & metals, basic materials and energy. However, the technicals for these sectors currently are unfavourable. Please be patient.

By: Don Vialoux

Don Vialoux — Mon, 01 Feb 2010 04:02:55 +0000

Hi AW. The charts will let us know the timing for the end of the current correction. 200 day moving averages for many equity indices, sectors and stocks frequently act as intermediate support levels. Tomorrow’s Tech Talk indicates several equity indices and sectors that are likely to find support near their 200 day moving average. Best guess based on the current depth of the correction is that an intermediate low will be reached in the second half of February. Stay tuned. We are watching closely for seasonal entry points for several sectors. They are not there. Please be patient.

By: Don Vialoux

Don Vialoux — Mon, 01 Feb 2010 03:57:31 +0000

Hi Jan Mohammed. Technical indicators for refined seasonal entry and exit points are based on daily data.

By: Don Vialoux

Don Vialoux — Mon, 01 Feb 2010 03:56:12 +0000

Hi GregDS. Lots of ETFs in the energy sector. XEG is the most actively traded energy ETF in Canada. BMO recently launched an equally weighted ETF (ZEO). Claymore has the Oil Sands ETF (CLO). Horizons has several single and double bull and bear hedged ETFs on crude oil as well as energy equity indices. In the U.S. OIH is the most actively traded ETF in the oil service sector. XLE is the most actively traded ETF in the U.S. energy sector. Most actively traded U.S. oil exploration and production ETF is iShares DJ Exploration and Production Index (IEO).

By: Roger

Roger — Fri, 29 Jan 2010 22:13:19 +0000

Roy, I’m betting silver is up starting next week.

By: LLL

LLL — Fri, 29 Jan 2010 22:13:11 +0000

Hello Don,

With the week coming to a close, TCK.B looks oversold technically. Is there any indications on a bottom as of yet for that stock and the sector as a whole? Thanks. LLL