Thursday, August 22, 2013

BNN Market Call e-mails:

I was a guest on BNN’s Market Call last Tuesday August 20 and aside from the top picks and the viewer call-ins, the guest is also provided with a list of e-mail questions which are addressed – if – there is a lull in the call-in questions. There was no lull and so if there is still interest I now serve up my technical spin on the viewer e-mails. The opinions are mine alone and not that of BNN or its affiliates - disclosure - I have no ownership to any of the issuers below

E-MAIL 1 Viewer: Sam Subject: Surge Energy (SGY TSX)

Q: What do you think of the charts?

A: Consolidation now following a big pop on volume in May – the P&F shows resistance ar $7.50 – if we break above that we get another big advance.

E-MAIL 2 Viewer: Ron Subject: “Inside days”

Q: You have briefly mentioned "inside days" in your column. To my knowledge , you are the only analyst who has ever mentioned the use of this tool. Could you briefly discuss and indicate whether you use other technicals in parallel.

A: An inside day is used by traders to time buy and sells. An inside day occurs when the current day trading range is less than – or smaller than the prior day trading range – which can be the sign of the end of a short term advance or decline.

E-MAIL 3 Viewer: George in Kitchener, ON Subject: Trian Wells & Energy (TCW TSX)

Q: Bill, may we please have your analysis on the energy services sector and trican?

 A: I like the sector but Trican has been a sector under perform – consider a switch to Precision Drilling or Total Energy

E-MAIL 4  Viewer: Donald in Edmonton Subject: DHX Media (DHX TSX)

Q: It is very good Company with but technically it seems to be breaking down. Does Bill have any insight into the future prospects for DHX Media?

A: The short term money flow numbers suggest someone is selling – I would reduce in here.

E-MAIL 5 Viewer: Denis Subject: Standard Pacific Corp (SPF NYSE)

Q: I would appreciate if you'll offer some technical analysis regarding the Standard Pacific Corp. (NYSE:SPF) stock.

A: The sector was gone through a corrective phase and the P&F looks OK – big support at $7.00

E-MAIL 6 Viewer: Emma Subject: Wi-Lan (WIN TSX)

Q: Could I please have Bill’s technical analysis on Wi-LAN.

 A: The stock has been a poor relative perform for over 2-years and the P&F has broken down – and their business model depends on litigation – run away from this one  

E-MAIL 7 Viewer: Eric in Bridgewater, NS Subject: Neptune Technologies and Bioresources (NTB TSX)

Q: Please ask Bill for a buy, sell, or hold; and Why. My cost: about $4.50 per share. Thank you.

A: I like the health sciences space – this group is volatile and event driven – with big gains and big losses – the best strategy is to buy a basket – contact me directly for a list of suggestions.   

E-MAIL 8 Viewer: Khokon Subject: Major Drilling (MDI TSX)

Q: The canadian drillers appear to be surviving the current market quite nicely.  Is this rotation seasonally supported? I would appreciate your technical analysis of MDI.TO.

A: Remember that MDi is not an oilfield service provider but rather in the base metals space – the stock is down to long term support at $7.00 – if long do not average down or avoid a buy until the base metals sector turns higher

E-MAIL 9 Viewer: Brian Subject: Canadian Tire Corp (CTC. A TSX)

Q: Where do you expect the stock price to go over the next 6 to 12 months

A: The retail space is losing momentum but stocks like CDN Tire, Sears and Loblaw have had a boost from the REIT spin – typical of a late cycle attempt by management to boost investor interest – I would avoid the group    

E-MAIL 10 Viewer: Lou in Burlington, ON Subject: Pharma stocks

Q: What time of the year is the strongest for pharmaceutical stocks? Would you comment on the technical outlook for iShares S&P Global Healthcare Index Fund CAD-Hedged

A: Again I like the health sciences space – now the iShares S&P Global Healthcare Index Fund (CAD-Hedged) (HXC) is heavy in pharma stocks and light on biotech stocks – the BMO Equal Weight US Health Care Hedged to CAD Index ETF (ZUH) may have a little more biotech exposure – see E-MAIL 7

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