Wednesday, April 21, 2010

The Place to be Through 2010

At Getting Technical we manufacture Canadian, U.S. and Global Sector Rotation Tables on a weekly and monthly basis. The weekly tables are good tools for a trader strategy and the monthly tables are good tools for an investor strategy. Sometimes a sector will jump out at us when it is ranked in the top 5 on both the weekly and monthly tables. Currently the Canadian and U.S. Industrial sectors are ranked a 4 (and rising) or better on the weekly and monthly tables. The North American Industrial sectors are economy sensitive and the implication here is that we have a strong recovery underway and so far many investors are not participating in this over-looked group. The other reasons to consider the industrial sector is because it is currently under-owned primarily due to the ETF manufactures such as iShares, Claymore and Horizon ignoring the group. So with no Canadian ETF available to replicate the TSX Industrial Index we are forced to engage in stock picking.

One component of the TSX Industrials is Bombardier Inc. and when we study a weekly chart of BBD.B we can see a clear up-trend that is interrupted by regular "earnings torpedoes" which drive the stock down from the upper growth channel to the lower growth channel. Note the stock in the past has recovered and pushed on to new highs. We think new highs are probable because of the strength of the overall industrial sector.

There are currently 19 components in the TSX Industrial Sector and 8 of them are must own through 2010. Our Level I and Level II seminars cover all this material. The current Oakville dates are May 4 and May 6, 2010. To enrol visit www.gettingtechnical/seminars our use this link

Canadian, U.S. and Global Sector Rotation Tables © 2010 Getting Technical


Anonymous said...

Bill,didn't you recently say we are nearing the end of a bull market and if so isn't "cash" the place to be,if not now...soon? said...

Hello Anonymous

I do believe we are in the late stages of a bull but I have NEVER recommended cash because there is always a bull out there somewhere - we currently have a great period of sector rotation and we must take advantage - Bill C