I
see the shares of Sears Canada Inc. (SCC) popped 14% last Friday on the news of
some big store closings. The market seems to value the company more if dead than
alive. Another great shrinking Canadian retail legend is Hudson's Bay Company (HBC) the folks responsible
for the decay and closings of Zellers. If you’re a stock picker you would avoid
these turkeys
If
you’re a stock picker you would also avoid “timing the market” and also avoid
the broader ETFs like the TSX listed XIU or the NYSE listed SPY because just
owning the market is a no-brainer strategy.
At
the close Friday I ran a stock filter on the TSX to scan for a weekly key reversal
to the upside. I got about 70 names which included several oilfield service
stocks and some base metals stocks. According to Stockcharts.com – A key
reversal is a one day chart pattern where prices sharply reverse during a
trend. In an uptrend, prices open in new highs and then close below the
previous day's closing price. In a downtrend, prices open lower and then close
higher. The wider the price range on the key reversal day and the heavier the
volume, the greater the odds that a reversal is taking place
Now
I don’t place too much importance to a one-day reversal so I only rely on
weekly reversals. One example is Lundin Mining Corporation (LUN) $4.35
displayed in a chart along with money flow and the Coppock Curve setting out three
low risk cyclic lows (A,B and C) that line up with a key reversal.
No comments:
Post a Comment