This trade is based off of a relative valuation using P/B (50% weight), P/E, P/S, EV/EBITDA (all 16.67% weight) and here are my findings, all prices in CAD:
Overvalued:
RY with a target of $94.30 (-4.00%)
TD with a target of $70.95 (-3.10%)
RY and TD also have the largest amount of Home Equity Lines of Credit on their balance sheets and these will perform poorly...
I did a discounted cash flow valuation on 3m assuming a revenue growth rate of 5%, in line with 10, 5, and 3 year historical averages and it produced a valuation of $135. A 41% downside valuation... When I saw this I questioned the legitimacy, but played around with revenue growth rates and found, that, to justify it's current valuation of $236.55, MMM would need...
Heads up. MELI Online E-commerce superstar out of South America is potentially forming a head and shoulders formation on could be an opportunity for some great trading in the next 3-6months on this fast mover.
Discounted Cash Flow Model produces a valuation of $440 using historical growth and margins in forecasting method - around 32% revenue growth. This...
Bold move, over exposure. You ready?
Short VXX which tracks the VIX.
Buy XIV which is inverse to the VIX.
Buy SPXL which is a 3x levered SP500 ETF
Short SPXS which is a 3x levered short SP500 ETF
If this isnt just a correction were screwed, if not, then congrats.
I think last week's pullback in equity markets was a good thing. The market got overheated and it gave us a reminder that stocks don't always rise. Memories and patience are short in the finance industry especially with some recent trends (blockchain) skewing people's perception that building wealth gets built overnight. Not the case, in the past 50 years of the...
Let me warn you now, this is not a fundamental or technical analysis based trade. This is a speculation on my behalf based on a simple theory.
As the US Federal Reserve continues to rise interest rates up to 3x this year, is it time that a true bear market in fixed income has come to fruition? Are the "safe" government bonds becoming one of the worst asset...
With equity and debt markets at all time highs, coupled with slowing growth and a prolonged bull market it may be time to start hedging your portfolio. One way to do this is through the VIX index-tracking ETF:VXX. Attahched is a chart of the actual index and you can see that in times of market pullbacks, the VIX spikes to unbeleivable levels. Good luck! I will be...
AC.TO trading at a PE of under 4x heading into holiday sales figures after their annual report could pull them back up from this clean support line touch in today's session. I already have a position of AC starting around $22.00 and will be using this pull-back to add to my position.
AMD has retreated from its 52week high of $15.65 and is trading at $10.73 going into next week. As indicated on the 1yr chart, it appears that they have dipped below the support trend line and are building a base there. However, they have managed to stay above their most recent lows, marginally, of $9.83. I think that AMD could either pull back towards the red...
I called the reversal about 3 weeks ago and I think that AC is trying to prove that this was just a temporary sell-off. The stock has fallen from highs of $28.50 to $21 and is now trading at $24.93. Fundamentally AC is strong with a good position in the Canadian market. It is showing on the chart attached that it is hovering around support zones and will probably...
DPZ Short Trading Week Dec 3-8
Technicals:
- RSI Showing overbought at 66-72 range
- MACD Showing strong sell signal
- More sellers than buyers in recent months (volume)
- Clear head and shoulders between blue lines, indicating down-trend reversal
- Clean upper-trend line touch @ 184.72 and potential 2-week long head and shoulders pattern indicating reversal in ST...
We can see on the chart that IEP has been building a base around $53 and is holding in a relatively tight range, IEP is a conglomerate company with a focus on M+A, takeovers, LBO's and more. Their PE Ratio is under 5, and you get paid 11.5% to wait for this one to pop. Never a bad thing. Furthermore, this stock usually outperforms the market in times of extreme...
Wow, what a week for NEWA. Up over 50% in the last week this stock made major moves when the bulls rushed in to seize up cheap shares of a good company after it's presentation last week at the 2017 Disruptive Growth Conference in NYC.
With respect to the 50 day moving average, the stock trades comfortably $8.50-$11 range, and I can see this company selling off...
Good morning all, I hope your weekend was spent well and are ready for another trading week.
Air Canada is my favourite stock pick of the year, I was long at $21 a couple of months back and I have seen a solid 26% gain. However, I feel as though we are in for a trend reversal. I still like where I own the stock and will be buying on pullbacks. I can see this...
TYHT Poised for an afternoon sell-off!
Here is my set up and thesis:
MACD stumbling around the average,
The price is bullied up 30% today, well above 100 and 200 day MA's.
RSI is showing overbought at value=70
Entry: 3.64 Add if goes to 3.7
SL 3.83
TP 1: 3.52 (40% position)
TP 2: 3.45 (50% posiotion)
TP 3: 3.23 (10% position)
Good luck, happy Friday!
I'm going back into short position with BONT after it jumped 30% in pre-market. I have an order for .95 and will look for the stock to go back to more sustainable levels.
Entry: .95
TP 1: .87 40% position
TP 2: .8 40% position
TP 3: .75 15% position
Hold rest of position move SL to entry.
ROKA had a big jump today up from $1.1 - $1.6, looking at this with a similar strategy to the BONT trade, looking to sell short into the afternoon sell-off.
Here are my targets:
Entry: 1.49
TP 1: 1.40 15% position
TP 2: 1.34 25% position
TP 3: 1.30 40% position
Close trade: 1.25
Good luck
