Friday, April 11, 2014

Gassy stocks leading the way:

I always look at the new 52 week high / low list for clues as to where the money is going – and in particular when we are in a corrective phase. Technically there are a few rules that apply to the new 52-week high / low list – the most important is the first new 52-week high will not be the last. So always seek out stocks and ETFs that have made their first appearance on the new 52-week high list such as the BMO Junior Oil Index ETF (ZJO) about 12 months ago at $20 (now $29)

Yesterday out of a total of 23 new 52 week highs (TSX – excluding warrants and other noise) there were 16 energy stocks – quite a message during a global sell-off in he major stock indices. The money seems to be still going into the energy stocks and in particular the gassy producers. Note the chart displaying two gassy producers a weekly of Delphi Energy Corp. (DEE) plotted above Crocotta Energy Inc. (CTA) – note that Delphi is leading Crocotta by several months. Other gassy laggards are DTX, LRE, PPY, SRX, TLM, TET, TBE and WCP – some homework suggested on these names.

No comments: