SYNOPSIS
Most major indexes were down last week in spite of the nice Friday rally. The trends for Canadian small caps (S&P/TSX Small Cap Index and S&P/TSX Venture Index) remain extremely negative. You won’t see any positive trend values at all in our weekly chart.
ProfiTrend Portfolio… Our PTP annualized growth rate is now at 282%, blowing out any previous record we’ve ever had. That compares with -32% for the S&P 500 and -42% for the S&P/TSX Composite Index! How can that be possible??? Well, it probably won’t last for long, but we’ll explain it to you below. Weird things can happen when you’re mostly in cash, and playing both the upside and downside in equities.
Seasonality… We continue our discussion of what October and November has in store as far as calendar effects go.
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Topic of the Week… So, What Do We Do Now?
This week we stick with a general chat session about today’s markets, which are still clearly tilted down, down, down… in spite of last Friday’s bounce and some follow-through on Monday and Tuesday. It takes more than a couple happy days to reverse a 10+ week trend. We’ll talk about alternative strategies for situations like this, including going long and short at the same time. It doesn’t always mean that one cancels out the other.
Featured Video… Bob Janjuah, senior independent client adviser at Nomura International Plc. Janjuah argues for more downside ahead… perhaps 15-20%. Check it the interview, and see if you find his arguments compelling (or not).