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Publisher: Colin Alexander Editor: Ken Wilson (450-691-4617)
Subscriptions and Administration: Pierre Fichaud (toll-free: 866-487-9711)
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A bounce for stocks
Technically Speaking
Despite our bearish concerns expressed last week, the markets began the week last Monday with a surprisingly strong bullish charge, which was subsequently reversed twice in the following two sessions so that by midweek, the Nasdaq Composite was positive by a small margin but technically still in a buying position. Tech sector shares were the strongest in this wave of buying and probably this was a sign that investors were warming to tech once more as indications pointed to an end of this heretofore-laggard status. By the end of the week, there was a more negative bias in the charts that could lead to some further weakness in equities on Monday morning however this weakness was largely inconclusive.
The broader equity indexes represented by the likes of S&P 500 and the DJ-30 had similar moves though lacking in technical strength on the upside. Perhaps the one common denominator though for all of these moves, was the heavy increase in trading volumes, which naturally serves to emphasize each of the corresponding movements. Volumes had been contracting in the previous two weeks, but an increase at this time associated to the more negative sessions, is to be ignored only at one’s peril.
Technically, the losses on all these markets remained within the lows of the previous day’s trading signifying that selling was largely contained. As a consequence, the charts still retain an upward tilt despite the ostensibly negative bias. Monday’s trading should be biased toward the bulls with trading shaped by the weekend merger of AT&T with Bell South and the first session of trading with a now-settled situation with RIMM. Inasmuch as these represent both the broader markets and the tech sector, all market bulls should benefit from this news.
New Buy Recommendations (in order of preference):
None.
Though we don’t have recommendations this week, we have indicated that both RADS and SIGM are in positions whereby further purchases could be made. At the same time though, an argument could be made to purchase shares of SA if its share price moves up through 8.50. Normally, we don’t recommend adding to losing positions however, the price of gold has rebounded lately and SA’s price has not risen to reflect that reality. On weekly charts, the price of SA recently bounced off support at its 25-week moving average. Finally, in a similar situation is STXS, which has seen some retracement in price since we recommended it. Selling has dried up as seen by the shrinking volumes on down days therefore a move higher and especially one, which takes price through the entry position on larger volume, would be sufficient enough to add to.
New Short Sales
None.
Stock Positions to Sell/Exit:
None.
Portfolio Comments:
New stops have been added to the list while others have been modified. Those that have blanks, are being carried unstopped for now. Please see our complete list of stops in the table below.
List of Current Stock Recommendations:
Action Ratings. The following is the legend for designating immediate action
for our stock recommendations. The first is B, meaning the stock is timely
to buy but the case for doing so right here is not overwhelming. Either the
stock may have gotten ahead of itself and may be vulnerable to a retracement or
else the stock has been performing disappointingly but may simply be
regrouping. B+ and B++ indicate stocks for which there is a technical case
to buy now, with plusses adding weight according to how many there are, up
to a maximum of two. Stocks rated H are ones to hold, awaiting confirmation
to buy more or to sell. SELL, of course, means what it says. It seldom pays
to override this designation. In the case of stocks held short, the rating is S
where positions should be retained. S+ and S++ indicate stocks for which there
is a technical case to add to the positions with plusses adding weight similar
to long positions. The maximum number of plus signs is 2.
N.B. There are no longer restrictions on foreign stocks held in Canadian retirement savings accounts.
|
Date of Entry |
Name |
Symbol |
Entry Price |
Current Price |
Stop |
Action Rating |
|
11/21/05 |
Amer Sci & Eng |
ASEI |
71.08 |
86.86 |
|
B
|
|
11/14/05 |
Birch Mtn Resour. |
BMD |
6.65 |
7.17 |
|
B
|
|
02/21/06 |
Cdn Natural Res |
CNQ |
58.00 |
60.50 |
|
B
|
|
01/09/06 |
Englobal Corp |
ENG |
10.86 |
10.46 |
|
H
|
|
01/17/06 |
Miramar Mining |
MNG |
2.50 |
3.31 |
|
B
|
|
01/30/06 |
Nasdaq Stock Mkt |
NDAQ |
45.98 |
40.69 |
|
H
|
|
01/09/06 |
Nuvelo Inc. |
NUVO |
12.95 |
17.38 |
|
B
|
|
01/09/06 |
Progenics Pharma |
PGNX |
29.70 |
29.03 |
|
H
|
|
12/12/05 |
Radiant Systems |
RADS |
13.78 |
15.07 |
|
B+
|
|
11/07/05 |
Redback Networks |
RBAK |
11.78 |
21.75 |
|
B
|
|
01/09/06 |
Seabridge Gold |
SA |
9.49 |
8.20 |
|
H
|
|
01/09/06 |
Sierra Wireless |
SWIR |
13.60 |
12.32 |
|
H
|
|
11/21/05 |
Sigma Designs |
SIGM |
13.10 |
15.43 |
|
B+
|
|
02/27/06 |
Stereotaxis |
STXS |
13.57 |
12.90 |
|
H
|
|
11/14/05 |
Tom Online |
TOMO |
20.66 |
20.88 |
|
B
|
|
03/08/04 |
Transcanada Corp |
TRP |
21.34 |
30.30 |
27.50 |
B |
New stops in BOLD
* Stop on a closing basis
** Buy if above entry price
*** Split-adjusted price