CHAPPY’S PICKS FOR APRIL 7, 2008

S&P 500 STRATEGY: STAND ASIDE (for definitions of terms see end of report)

The S&P 500 enjoyed a big up week this past week, thanks to the huge 48-point gain on Tuesday. It was an interesting day and we suddenly learned and read about “9 to 1” days. We admit we don’t know everything so learning about this one was interesting.

So what is the 9 to 1 indicator? It was developed by Martin Zweig, a market guru. (He lives in a $70 million house. I don’t. Nor do I know anyone who does.) How does it work? You take all the volume of all the NYSE listed stocks and figure out what percentage of that volume came from stocks that rose that day. When that volume hits 90 per cent, it is a 9 to 1 day and is very bullish.[read more…]

TSX INDICES

The TSX Composite jumped 3.3% this past week and is now at or approaching the 40 week MA resistance. As long as the TSX or any of the sub indices are below their 40 week MA we do not wish to buy them. All sub indices were up this past week except for Gold and Health Care and both were only off small.

The Income Trust sector is flashing some buy signals and can be purchased selectively. We have a number of income trusts in our picks below and more are in the list of TSX Composite stocks below as well. Many of the sub indices are coming off very oversold levels but as we note they remain well below their 40 week MA so buying them is purely speculative. But we do have a number of buys below in stocks but examine them carefully before plunging in. [read more…]