For GT Blog September 26, 2008

Quarterly portfolio window dressing is one of many immortal Jaberwock-like creatures that roam the granite canyons of the Wall & Bay Street jungle, sending inappropriate signals to unwary investors

Basically at the end of each quarter portfolio managers blow out falling stocks at any price in order to pretend they never owned them.

This could present opportunity for investors seeking out stocks victimized by this silly charade

The names of some victims - Ace Aviation, Algonquin Power, Cameco, Can Tire, Cascades, Forzani, Hudbay, Harry Winston, Jean Coutu, MacDonald Dett, MDS, Norbord, Nortel, Petro Canada, Sherritt and Transat AT

Bill Carrigan

For GT Blog September 24, 2008

The current US FED bailout plan was raised concerns about the effect of too many dollars being printed to "fix" the problems on Wall Street.

Gold and the gold stocks could be a beneficiary of a pending return to an inflationary period

Perhaps the safer way to participate in a probable rally in the precious metals complex would be to seek out the oversold silver miners

Note our Silver vs Gold chart below - clearly displaying the oversold condition of silver

Bill Carrigan

Financials and Elliott Wave

A few observations on an Elliott Wave corrective wave (2) Low

Wave 2 often retraces most of wave 1’s upward move.

Often a sharp decline.

Fundamentals remain negative, perhaps less negative.

At the bottom, investor psychology is usually more bearish and negative than at the
beginning of wave 1, creating a positive divergence between momentum and sentiment.

The bottom of wave 2 is the safest entry point in the cycle.


Note the current higher lows in the Us and Canadian financial ETFs - The 2007-2008 financial bear is history


Bill Carrigan