Comments on: Tech Talk for Wednesday July 28th 2010

By: Dee

Dee — Thu, 29 Jul 2010 00:38:17 +0000

Thanks, Marc and Canuck2004. I appreciate your input!

By: canuck2004

canuck2004 — Wed, 28 Jul 2010 23:57:21 +0000

For trading US junk corp. bonds, 2 CAN ETFs hedged to CAD: XHY & CHB… XHY has better volume of the two, both have very good yields…better yields than DNC…however DNC is actively managed. XHY has a large basket of corp bonds, around 300, so relatively safe.

These things are relatively high beta for “bond” ETFs, these do not perform as govt. bonds…. best to buy when markets doing poorly as they will reflect this bias from mother stock performance… buying op. is coming soon.

As a general rule, these should be a small part of one’s bond portfolio.

By: marc

marc — Wed, 28 Jul 2010 19:33:34 +0000

Not at all. It is a high yield corp. bond portfolio. Experienced team. It trades enough unless you want to put over $100k to work at a time. Occasionally enough on the offer for $25/50k at a time.

By: Dee

Dee — Wed, 28 Jul 2010 19:18:30 +0000

Marc, Do you have any concerns about DNC’s below-investment-grade portfolio or its low trading volume?

By: marc

marc — Wed, 28 Jul 2010 18:29:08 +0000

re Amelia, I think corporate bonds are a good place to be invested. Slow growth environment and continuation of spread narrowing can’t hurt you. Governments aren’t offering enough. Deans Knight Income Corp(DNC-T)good way to pick up income with exposure to corp bond sector, principals are invested alongside you, discount to NAV, buyout at NAV at the latest April 2014.

On Gold, 1050 is a P&F target, and I have always viewed a pullback to below $980 as necessary before a push to much higher levels. Fan approach sees gold in the $800s if we get a meaningful correction. This is supposed to be a seasonally strong time for gold, it is anything but. We should pay attention.

By: AW

AW — Wed, 28 Jul 2010 17:54:44 +0000

May be worth looking at this article yesterday for you gold traders:

http://www.optionmonster.com/news/article.jsp?page=commentary/in_the_news/gold_drops_but_draws_bullish_activity_47464.html&src=msu

By: canuck2004

canuck2004 — Wed, 28 Jul 2010 16:59:52 +0000

Amelia

Watch last week’s Market Call with Hank Cunningham on BNN… he’s a top bond guy. He is still bullish on Bonds… deflation rather than inflation for the near future. I agree 100% with his view… and am positioned accordingly.

By: GB

GB — Wed, 28 Jul 2010 15:43:13 +0000

Natural Gas is starting well on Season, up 4% and over 8% for the Bull HNU.TO
Every Thursday is a weekly Gas storage report, see what happens tomorrow morning.
Very volatil, I was on the Bear HND.TO with the trend for a short time but got hit with 13% loss in 1 hour whith a new report. I am long now. Be fast but don’t hurry!

By: kay

kay — Wed, 28 Jul 2010 15:03:33 +0000

Hi Don:

Any opinion on why natural gas is moving up, what is the resistance level. Also any thoughts on the downside for oil given the inventory level came in high today.
Thanks.

By: Ron/BC

Ron/BC — Wed, 28 Jul 2010 14:23:38 +0000

Gold has always broken angled trendlines and even price support and resistance levels often. Just get a chart and draw the lines across them to see. The volatility of Gold causes this and one will often see Gold break down briefly stopping out longs and then turn around and soar. Or visa versa. Not that it is a guarantee but it certainly doesn’t surprise me anymore and Gold seems to love to whiplash traders. Especially futures traders that are using extreme leverage and can’t handle the pain. They are forced to unload and cause even more volatility. XGD is still holding support at 21 and a basket of Gold stocks smooths out the extremes and gives a more accurate picture of reality.