A scan for abnormal volatility seeks to find the potential of momentum coming into an underlying name before they become obvious to the masses. Here are this week's three technical risk/reward setups that came up on the radar.
The demand for safety and yield has continued to make momentum investing extremely successful. Not only has the momentum strategy continued to outperform in this environment but it's also provided a strategy that allows investors to blocks out all external noise (such as recession fears) while allowing them to stick with the trends that are working. Here are three examples of so-called "boring" stocks demonstrating the 1-year outperformance versus the Canadian benchmark.
Most fund managers' goal is to outperform the benchmark, so money tends to flow into stocks showing outperformance. When combined with the following technical setup such as a stock breaking out from a base (strong chart pattern) to a new all-time high, this strategy can not only be very powerful, but very profitable. Here are this week's three ideas:
Emotional biases are much harder to correct because they stem from impulse and/or intuition. Often an investor needs to first recognize these issues, then find a way to minimize the effects. Below are the behavioral elements associated with market trends and the psychological forces that drive them.
Technical analysis of three Canadian dividend stocks.
Many companies trading in the Canadian stock markets such as the TSX and TSX Venture exchange go through periods of consolidation where not a whole lot happens with either the share prices or the fundamentals at the company. This is where technical analysis can be helpful as it provides a bit of a guide as to when these 'quieter' stocks may be set to make a move. Here are a few stock charts with companies poised to trend higher.
The old investing adage “sell in May and go away” may not always hold true to the exact month, but as we enter the dog days of summer, sector rotation is showing up on seasonal cue. Today I'll be focusing on consumer staple and telecom stocks which consistently outperform the TSX index between the months of May and October...
This week's technical analysis top picks, featuring potential breakouts, momentum plays, and bottom fishing candidates...
Photon Control (TSXV:PHO) has spent the last 3+ months consolidating within a round bottom continuation pattern. Price action has now begun to breakout from this rounded bottom pattern and above the volume by price accumulation bar. Relative strength vs. the S&P 500 has broken out above its downtrend line as momentum (MACD) begins to curl higher. This price action suggests the bulls are regaining control and the prior uptrend is set to continue...
