REMINDER: Our regular weekly SOTW Q&A webinar is tomorrow, Tuesday, May 26 at 12:30 ET due to today’s US Memorial Day Holiday. You can still register at http://news.vectorvest.com/CA_SOTW_QA_052615_registration.html
NO Wednesday CA Colour Guard Report THIS WEEK. Wednesday is a travel day for me to Toronto for Thursday’s Intermediate Options Course and Friday and Saturday’s Investment Clinic. So, no Canada Colour Guard Report this week.
However, remember, as long as you pre-register for tomorrow’s webinar, you will receive an email with a link to the recording as soon as it is available. We’ll discuss market timing and look at several stocks, just as we do in our CA Colour Guard Report.
With an hour to go, trading on the TSX is extremely light today with the US market closed. Top gainers among high VST (Value, Safety, Timing) stocks are Magellan Aerospace (MAL) up 1.79%; Airboss (BOS) up 5.60%; Guyana Gold Fields (GUY) up 5.67% and Theratechnologies (TH) up 8.09%.
Follow-up on BitGold and Wood Products. On Friday morning before market open, I posted an article on BitGold, a new issue that has sparked a buying frenzy. Trading on the TSX Venture under the symbol XAU, BitGold had just announced a $51 million acquisition of GoldMoney.com. Well, right at the open Friday a trading halt was announced. Trading finally resumed earlier today after BitGold announced clarification on two financial items related to the acquisition. And of course XAU opened at $6.00, up 29% from Thursday’s close. It’s trading now at 2:38 ET at $5.81. So the volatility continues. Please see my initial post for some general guidance about when to buy new IPO’s or new issues.
NEW BUYS – Look for Dollarama (DOL) to close today with a new Buy recommendation. For those of you who regularly watch my Wednesday Colour Guard Report Video which I post on this Blog, you know that I like to run a regular scan to find the day’s NEW BUYS. These are stocks that were not Buy-rated yesterday and today they are. Not every New Buy is a great buying opportunity, but one reason I like to know about these stocks is so that I can study the stock’s fundamentals, the news and especially the chart pattern. It often allows me to find stocks that are resuming an uptrend after a pullback or possibly just breaking out. New Buys often spot a great buying candidate even before traditional technical studies such as MACD.
And running the New Buys scan, found in the Trends – New Stuff UniSearch folder, makes it easier for me to spot common breakout patterns as they’re developing. DOLLARAMA (DOL) today is a case in point. It’s a New Buy in realtime. MACD hasn’t crossed yet, but take a look at the chart below. It shows a Cup-with-Handle pattern, one of the most popular bullish breakout patterns. Today may not be the best time to buy any stock with our Market Timing Gauge showing ‘Mildly Bearish’, however, it’s always a good idea to maintain a WatchList of good buying candidates ready to go for when we get a positive timing signal. DOL is going in my WatchList.
In tomorrow’s webinar, after we answer your questions about Stress Testing Your Trading Plan, let’s use our time to run my regular weekly Colour Guard scans to look for potential new WatchList candidates.
Hope to see you there!