Methodology

“How to make money in stocks” by William O’Neil

April 27, 2010
“How to make money in stocks” by William O’Neil

“How to make money in Stocks, a winning system in good times or bad” by William O’Neil is one of the most interesting books available on stock investing. O’Neil himself continues to be a main figure in the investing world through his “Investor’s Business Daily” publication and the investors.com website. The popularity of this book...
Read more »

Posted in Books, Methodology | No Comments »

Market pullback ahead ? A look at the US markets at the April options expiry date

April 18, 2010
Market pullback ahead ? A look at the US markets at the April options expiry date

The markets on April 16th, 2010 were quite volatile and clearly in pullback mode. Both the S&P/TSX, S&P 500 along with the Nasdaq we down more than 1%. The impressive Venture exchange was only down .75% despite Gold closing 1.91% lower to 1137.3 USD. The catalyst of this drop seems to be, in part,...
Read more »

Posted in Market Commentary, Techical Analysis | No Comments »

A look at seasonal rallies and declines

February 28, 2010
A look at seasonal rallies and declines

  Seasonality is a very important aspect of the way markets have worked for many years. One of the books that documents market behaviour throughout the calendar year is the Stock Trader’s Almanac. This book  is regularly updated with various interesting statistics that are relevant at various times during the year. The book also includes important statistics...
Read more »

Posted in Books, Methodology | No Comments »

Security selection: importance of market and sector

February 11, 2010
Security selection: importance of market and sector

“The cause of price movement in any given stock is predominantly a function of market and sector risk. More specifically, 80 percent of the risk in any given stock is attributable to the market and sector. Yet the typical time allocation for researching a stock is 80 percent to the actual stock and only...
Read more »

Posted in Asset Allocation, Books, Methodology, Techical Analysis | 2 Comments »

The media and technical analysis 101

February 9, 2010
The media and technical analysis 101

It is quite fortunate for individual investors that BNN has provided and continues bring forth world class investment coverage. In today’s note I want to bring the attention of the reader about the topic of technical analysis. The reason is that quite often, some of the interviewers on programs such as Market Call will refer to terms such...
Read more »

Posted in Books, Techical Analysis | No Comments »

Focus on dynamic asset allocation

January 24, 2010

In a previous note, we introduced strategic and tactical asset allocation (SAA and TAA). They both face challenges for investors and planners alike. In this note we’ll introduce dynamic asset allocation (DAA). To start with, here is an excerpt from an article on Investopedia.com by Jason Van Bergen: “Another active asset allocation strategy is...
Read more »

Posted in Asset Allocation | No Comments »

The Canadian dollar: correlation to US markets

January 22, 2010
The Canadian dollar: correlation to US markets

There is no shortage of comments concerning the Canadian currency and what the right level it should settle at. However, there is no question that there is a very good correlation between the Canadian dollar and the US stock market as the chart below shows.  Long term, the Canadian dollar should reflect the fundamentals of...
Read more »

Posted in Market Commentary, Techical Analysis | No Comments »

S&P/TSX Venture on a tear

January 8, 2010
S&P/TSX Venture on a tear

In this note we present an anotated chart of the S&P TSX Venture index. This is where smallcap/venture investors were affected the most by the crash of 2008. The loss from the peak in May 2007 down to December 2008 was a very discouraging 80%. Smallcaps, however, have always presented opportunity for investors...
Read more »

Posted in Market Commentary, Techical Analysis | No Comments »

Market depth indicators: cumulative advance-decline line

January 7, 2010
Market depth indicators: cumulative advance-decline line

This is quite a simple yet powerful market depth indicator. There are a number of definitions available online such as the one from Investopedia.com: “The advance/decline line is the most popular of all internal indicators by far. It is a very simple measure of how many stocks are taking part in a rally or sell-off. This...
Read more »

Posted in Market Commentary, Techical Analysis | No Comments »

A TSX snapshot – December 29, 2009

December 30, 2009
A TSX snapshot – December 29, 2009

The favorite saying in real estate is “location, location, location”. One has to pay up for properties in good locations. Investing is similar in this respect. One needs to pay attention to the stocks and sectors outperforming the market. This is where money is flowing and is likely to continue to flow. In this note we...
Read more »

Posted in Market Commentary, Methodology, Stocks & ETFs | No Comments »