HOPE ALL YOU URBAN FOLKS ARE ENJOYING YOUR WEEKEND. THE PIG SPENT SATURDAY CLEANING THE STY AND DOING SOME FIXER UPPERS AROUND THE PLACE. YOU GUYS ALL KNOW OF THESE, A HOLE HERE, A CRACK THERE, SWEEP AND WASH....YOU KNOW THE GAME. IT KEEPS US IN UPGRADED SURROUNDINGS, IT KEEPS THE SPOUSE HAPPY AND.....WELL..............IT KEEPS THE PEACE..................LOL.
SO THE PIG WORKED WELL INTO SATURDAY NIGHT, TINKERING WITH THE PROGRAM WE HAVE COME TO KNOW AROUND HERE AS THE S.O.W......"STOCK OPPORTUNITY WINDOW". ONE THING THE PIG HAS LEARNED THOROUGHLY IN THE PAST FEW MONTHS OF CREATING AND IMPLEMENTING THIS ANALYTIC TRADING SYSTEM ARE THE WORDS "VARIABLES" AND "EVALUATION". MANY NIGHTS WE SCAN TWICE AND THREE TIMES TO MAKE SURE THE RESULTS ARE CONSISTENT AND THAT WE ARE FEEDING THE CORRECT VARIABLES IN TO EACH SET OF NUMBERS AND THAT THEY ARE WORKING IN COMPLIMENT WITH THE CHARTS AND ECONOMIC NUMBERS. THERE'S NO CONFIDENCE LIKE THAT OF A MAJORITY ? OR IS THERE ?
REV.V......WELL....ONCE IN A WHILE COMES ALONG AN OPPORTUNITY SO JUICY THAT IT CAN'T BE IGNORED. THIS ONES BEEN IN OUR SCANS FOR TWO WEEKS ON A NIGHTLY BASIS. SCORING HIGH LATELY IN MOMENTUM AND MOVING AVERAGE SENTIMENTS. THE NET MONEY FLOW IS FANTASTIC AND STABLE, AND HAS BEEN FOR SOME TIME. SO WHY THE ACCUMULATION ?....WITH NO REAL STORY AS OF YET ? THE QUESTION IS....IS IT A TRAP OR IS IT A TRIP ? THE EARLY BEGINNINGS OF ONE ?
AVI.V.....THE PIG'S BIO-TECH BACKGROUND IS NOT VERY EXTENSIVE BUT THIS LITTLE ONE HAS BEEN SHOWING UP FOR THE LAST WEEK OR SO ON THE SCANNER. THE NUMBERS HAVE FINALLY STRENGTHENED ENOUGH TO THROUGH IT OUT TO YOU ALL. MAYBE A CHANCE OF A GROUND BREAKING PRODUCT BEING ANNOUNCED SOON. CHART A BIT CONFUSING BUT THE PIGS ALL FOR HEALING..................
ETF.V...A HARD DAYS NIGHT...ANOTHER PERENNIAL REGULAR SCANNER. BUT THIS TIME IT APPEARS A BREAKOUT IS IMMINENT. MOMENTUM BUILDING AND THE HARD CORES ARE HOLDING WITH TRADERS SEEMINGLY BECOMING IMPATIENT AND MOVING OUT OF THE STOCK. ASSAYS ARE COMING AND EXPECTED TO MOVE THIS PIGLET LARGE. DOUBLE THE PIG SAYS IN SIGHT AND SHORT TERM...
ALZ.V...THE PIG HAS A MYSTERY TRADE ON HIS HANDS THIS WEEK. THIS PIGLET HAS COME UP IN THE LAST 5 CONSECUTIVE SCANS WITH DECENT NUMBERS AND ITS INTRIGUING. RUMOURS OUT REGARDING A MAJOR TRADING HOUSE (PINETREE) HAS OWNERSHIP. BUT THIS DID NOT NECESSARILY WORK FOR US WITH THE CUX.V AND HAE.V CALLS THE PIG MADE. IT MAY BE ONE TO WATCH ............FOR NOW THOUGH.......
THE PIGS HONORABLE MENTION...
THE PIG HAS "EYES"...............HE WAS TOLD TO WATCH SAY.V.......NO REASONS, NO NUMBERS, NO CHART..... NOTHING.........SO THE PIG PASSES IT ON TO YOU......YOU HAVE BEEN INFORMED..
THE PIGS END OF THE WEEK PEEK..........
Trading Day:
TSX wraps up January, the worst month in nearly a year
The S&P/TSX Composite index fell 179.9 points, or 1.6 per cent, to 11,094.31, bringing losses for the month of January to 652 points, or 5.5 per cent. But the senior Canadian benchmark has actually fallen eight per cent since hitting an intraday post-crash high of 12,070 on Jan. 11. Since then, China’s clampdown on lending, U.S. President Barack Obama’s crackdown on Wall Street and European debt worries have sent commodity prices and stocks into a sharp pullback.
The U.S. dollar climbed on reports that the U.S. economy grew at an annual rate of 5.7 per cent in the fourth quarter, the fastest pace since 2004, led by purchases of software and equipment that jumped 13 per cent. A barometer of business activity in Chicago, the ISM index, rose to its highest level since November 2005, signalling that a recovery is underway. U.S. consumer confidence reached its highest level in two years in January. In Canada, wholesale trade grew 2.4 per cent in November, on rising auto imports and sales of building supplies and food. The Canadian dollar went up against 12 of 16 major currencies, but dropped another half-cent against its U.S. counterpart, ending the week at 93.52 cents US, down over a cent in the past week, and 3.5 cents in the past two weeks. With the greenback surging, commodities continued to move lower: Crude oil fell 75 cents, or one per cent, to $72.89 US a barrel for the March contract, down 2.2 per cent for the week and 8.4 per cent in January.
April gold fell $1 to $1,083.80 US an ounce after trading as low as $1.075 US an ounce. The price of gold fell $12.40 US an ounce in January, or 1.1 per cent, while the S&P/TSX composite global gold index plunged 10 per cent in the same period.
Lumber stocks moved in the opposite direction of lumber Friday, with prices in Chicago spiking the $10 daily maximum to $248 US per thousand board feet while shares of Canfor dipped eight cents, or one per cent, to $7.30. Canfor has fallen 24 per cent since setting a high of $9.55 on Jan. 7, with lumber sitting at its highest levels in 17 months. West Fraser Timber dipped six cents to $32.74 Friday after trading as high as $36.78 Jan. 11.
Shares of Canadian Pacific Railway fell $2.28 to $50.48, bringing losses in the past two sessions to seven per cent, despite reporting Q4 profits of $194.1 million, or $1.15 a share, that beat Street expectations. CP said sales fell 16 per cent to $1.1 billion in the quarter, but the railroad slashed expenses 17 per cent in the same period.
Burnaby-based PMC-Sierra added 19 cents to $7.95, but shares fell 8.2 per cent in January, despite a Street-beating quarter where the company earned $15.1 million US, or six cents a share, up 70 per cent from the same period a year earlier, with sales climbing 15 per cent to $139.5 million US.
OncoGenex Pharmaceuticals, headed by chief science officer Dr. Martin Gleave, UBC research director and BC Cancer Agency research chair, had a tough month on the market, adding four cents Friday to $14.17 US, down 36 per cent in January and 67 per cent from its all-time high set in August. In December, Israel’s Teva Pharmaceuticals paid $10 million US for OncoGenex shares at $37.38 US, paid $60 million US for rights to the company’s B.C.-developed cancer therapy, agreed to $370 million US in future payments if clinical trials are successful, and agreed to fund future development costs. Traders, hoping instead for a quick takeover bid, have been selling OncoGenex stock ever since.
* * *
Gregory Thomas is a Financial Adviser and Certified Financial Planner with Raymond James Ltd. www.gregorythomas.ca Tel. 604-663-4235 gregory.thomas@raymondjames.ca The views expressed do not necessarily reflect those of Raymond James. This article is for information only. Raymond James Ltd. is a member of CIPF.
THE PIGS OUTLOOK ON METALS....
Metals, mining to shineBrooke Thackray07:45 EST Thursday, Jan 28, 2010
The metals and mining sector typically does well from mid-November to the beginning of May. I have coined the strategy of investing in the metals and mining sector during this time as “Metals and Mining – M&Ms Don’t Melt In Your Portfolio”.
So far the sector’s performance has been relatively flat during its period of seasonal strength and more recently has been correcting. This lackluster performance could change very shortly as the sector tends to do well in the second half of its seasonally strong period, from the end of January to the beginning of May.
From January 29th to May 5th, during the years 1990 to 2009, the metals and mining sector (U.S. S&P GIC sector) has produced an average gain of 6.3% and has been positive 65% of the time. This compares to the S&P 500 which has had an average gain of 3.7% and has been positive 80% of the time. Although the S&P 500 has been has been positive more frequently, the metals and mining sector has produced bigger gains. During this time period the metals and mining sector has had a gain greater than 10% seven times, compared to three times for the S&P 500.
The metals and mining sector tends to do well at the beginning of the year as firms tend to place more orders for base metals to meet any increases in their annual forecast, winter improves access to many mines in the northern hemisphere and investors anticipate good news from the annual general meetings that are often held in the spring time. Investors should remember that the metals and mining sector tends to underperform in the summer months as much of European manufacturing shuts down, decreasing the demand for metals. Historically, the best time to be reducing positions in the metals and mining sector has been the beginning of May.
The seasonal cycle of the metals and mining sector is evident in the average year graph from 1990 to 2009. This graph averages nineteen years together and shows the yearly trend. The sector on average performs well from the end of January until the beginning of May, volatility increases and then the sector slides until October or November and then once again typically performs well until the end of the year. It is important to note that this is an average trend and not all of the years are similar -- some years the seasonal trade works and some years it does not, but on average it has produced above average returns. Also, some years it is better to enter the second half of the seasonal trade before January 29th and some years later, and exit either before or after May 5th. Although using the average dates has produced superior returns, using technical analysis can help in choosing the entry and exit dates.
At one time Canada had a fairly robust metals and mining sector, but after mergers and foreign buyouts, there is no longer a significant amount of large Canadian companies. As a result the metal and mining ETFs available in Canada are global. Depending on an investor’s portfolio and risk tolerance there are several base metal ETFs, including Claymore S&P/TSX Global Mining (CMW), BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD Index (ZMT), and Horizons double leveraged, HBP S&P/TSX Global Base Metals Bull Plus ETF (HMU). In the U.S. market, one of the more popular ETFs for the sector is the SPDR S&P Metals and Mining ETF (XME). As each of the ETFs are different, investors should refer to the relevant prospectuses for information.
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