Top Picks from Hap Sneddon, portfolio manager, Technical Analyst & Founder, CastleMoore
FOCUS: Technical Analysis
Market outlook:
While markets seem to have come through China, Greece and Iran thus far okay, the relative strength improvement in defensive and interest-sensitive sectors since their bottoms in June implies that the market is prepared for slower growth and turbulence.
Some divergences have been accumulating such as the transports non-confirmation of the industrials, the steady march higher of the TED spread and the Russell’s recent underperformance of the S&P.
Certainly through to the fall investors can find opportunities in healthcare, utilities, defense, consumer staples, and bonds. With good stop loss and position management opportunities may exist in gold producers and energy though evidence of basing is required to merit any initial commitment.
Top Picks
BCE (BCE.TO)
Emera (EMA.TO)
Consumer Staples Select Sector SPDR ETF (XLP)
