Chappy’s Stock Picks for January 14th 2008

TSX INDICES
Another down week for the TSX Composite. But not if you own gold. This is becoming the classic counter-trade. And who was it said that the gold sector just goes with the market? Not now. Some weeks it will, but right now it isn’t and it is sending a huge signal.

The TSX Gold Index hit new highs again, along with the Materials Index. Financials, Consumer Discretionary and Real Estate all hit new lows for the move. With Gold doing so well, the TSX Composite held in and remains above our key 13,400 breakdown point. If we break that point then we are headed for 11,000 and (on an outside chance) as low as 10,500. [ read more... ]

XCHANGE TRADED FUNDS
Not much in the way of changes here. XGD and GLD both made new highs again, and both dailies and weeklies are getting very extended, suggesting at least a short-term correction may soon be in the offing. For most others the stand aside signals are confirmed, although many of them (XFN, XRE) are very verextended to the downside. The XIT gave a new stand aside signal so you should now be out of that one. Bonds remain in their uptrend. [ read more... ]

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