Good morning.
The rotation in markets is going with the defensive stocks performing well while commodities stalled. Cramer called them nerd stocks and recommended BAC. There's a real call to be made as we approach quarter end. Stay the course or run for the hills? The Fed has all but told us that Quantitative Easing is done and that low rates are with us for some time to come. Peter Hodson’s article on the weekend is very informative. There is a Traders’ saying that you should never short a dull market. And, if you look in the US it’s the stocks that "Yawn in your Face" that are attracting attention. The barometer of the market’s willingness to take on Risk is shown in things like the rally in BAC. But the flow of funds is still cautious and hence the defensive names.
China is helping with retail sales up over 15% y/y in May and this was coupled with Industrial Production up almost 9% y/y.
Cramer seems to talk about a fair number of Canadian companies. He likes the company guidance from Thomson Creek. There's a piece asking the rhetorical question as to why one should buy SU. Late last week the momentum seemed to be coming out of the commodities caused by concern about lack of demand and not a US$ rally.
It may be wise to…………………… stay on the sidelines.
SSO US (Bloomberg): Ultra Standard and Poor’s 500 ProShares is an exchange-traded fund incorporated in the USA. The Fund seeks daily investment results that correspond to twice (200%) the daily performance of the Standard and Poor’s Index.
Quote of the Day:
There are three ways you can get to the top of a tree:
1) sit on an acorn
2) make friends with a bird
3) climb it.
-- Anonymous
Ed Pennock, CFA, Managing Director
416-369-6921, epennock@dominick.ca
Graham Farrell, Institutional Equity Trading
416-369-4208, gfarrell@dominick.ca
416-369-6921, epennock@dominick.ca
Graham Farrell, Institutional Equity Trading
416-369-4208, gfarrell@dominick.ca
The above note is prepared by an Institutional Salesperson based on morning meeting comments and general Institutional desk discussion and should not be construed as a research report or a solicitation. For information purposes only. D&D Securities, its clients, and principals may have positions in these securities.
