June 11: Accumulate the Leisure and Entertainment sector
ETF: PEJ at $20.73 Current price: $21.51
Comment: Units are about to break below its 20 and 50 day moving averages and short term support at $21.34. Strength relative to the S&P 500 Index has turned negative. Take profits.
June 22: Accumulate the Fertilizer sector
ETF: SOIL at $12.20. Current price: $13.74.
Comment: Technical profile has started to turn negative. Units closed below their 20 day moving average yesterday. Strength relative to the S&P 500 Index turned negative two weeks ago. Take profits.
July 2: Accumulate the Software sector
ETF: IGV at $62.18. Current price: $63.30
Comment: Technicals remain positive. Intermediate trend is up. Units trade above their 20, 50 and 200 day moving averages. Strength relative to the S&P 500 Index remains positive. Continue to hold.
July 6: Accumulate gold bullion
Gold price: $1,578.90. Current price: $1,672.80
Comment: Technicals remain positive. Nice breakout above resistance at $1,642.40 earlier this week. Strength relative to the S&P 500 Index has turned from neutral to positive. Continue to hold.
July 13: Accumulate Canadian gold equities
ETF: XGD at $18.01. Current price: $19.65
Comment: Technicals remain positive. Nice break above its 50 day moving average last week. Strength relative to the TSX Composite Index remains positive. Continue to hold.
July 20: Accumulate the Canadian energy sector
ETF: XEG at $15.12. Current price: $16.11
Comment: Technicals remain positive. Units continue to move higher above a reverse head and shoulders pattern. Strength relative to the TSX Composite Index remains positive. Continue to hold.
Sell the Transportation Sector
Dow Jones Transportation Average at 5,126.65. Current price: 5,115.64
ETF: IYT at $91.56. Current price: $91.34
Comment: Technicals once again are turning negative. Units briefly fell below their 20, 50 and 200 day moving averages yesterday. Strength relative to the S&P 500 Index remains negative. Continue to sell/avoid/short.
August 6: Sell the Airline sector
ETF: FAA at $28.66. Current price:$28.90
Comment: Technicals remain negative. Units closed below their 200 day moving average yesterday and are testing their 20 day moving average. Strength relative to the S&P 500 Index remains negative. Continue to sell/avoid/short.
Don Vialoux has 37 years of experience in the Investment Industry. He is a past president of the Canadian Society of Technical Analysts (www.csta.org) and a former technical analyst at RBC Investments. Don earned his Chartered Market Technician (CMT) designation from the Market Technician Association in 1995. His CMT paper entitled “Seasonality in Canadian Equity Markets” was published in the Spring-Summer 1996 edition of the MTA Journal. Don also has extensive experience with Exchange Traded Funds (also know as Index Participation Units) as well as conservative option strategies. In 1990 he wrote a report that was released in the International Federation of Technical Analyst Journal entitled “Profiting from a Combination of Technical and Fundamental Analysis”. The report introduced ” The Eight Phases of the Stock Market Cycle”, an investment concept that continues to identify profitable entry and exit points for North American equity markets. He is currently a member of the Toronto Society of Fundamental Analyst’s Derivatives Committee. Now he is the author of a daily letter on equity markets available free on the internet. The reports can be accessed daily right here at www.dvtechtalk.com. Also try Don’s other Great Site EquityClock.com
