The Transparent RRSP: Market Fears

The Week of August 8
  • I left the RRSP account alone. I wanted to buy shares of Bombardier (BBD.B.TO), but I couldn’t find an entry. There might be an entry on Monday or Tuesday.

 

BBD vs XIC

Price charts: BBD.B vs. XIC on freestockcharts.com

As you can see in the top two charts, BBD.B has been more positive than the market (the two lower charts of XIC). If the market continues to head lower, I’ll either abandon the plan to buy shares of BBD.B or just wait until the market settles down.


Last Thursday, the markets collectively demonstrated anxiety over North Korea. There was a big market sell-off and most gold stocks went up. It’s hard to say at this point if this is a reaction temporary in nature, or if it will signify the beginning of more and more selling due to fear. I’m going to make it a point to pay closer attention to the news and to how the market trades over the next couple of weeks.

Last week, I put together a big watch list of stocks that had promising charts. After last Thursday, only a few of them still look okay:

  • L.TO (Wait another few weeks to a month for this to properly set up)
  • H.TO (I own shares of this stock already.)
  • EXE.TO (I own shares of this stock already.)
  • TCW.TO
  • D.UN.TO (This is a REIT.)
  • CNE.TO (Needs a better setup unless you’re into aggressive, riskier entries.)
  • LIF.TO

Until you know what’s going on with the market, I don’t recommend buying anything. These stocks would be worth looking at while also observing the market. Watch how these perform against the market or their sector. If resilient stocks start to show weakness, then it’s usually a good sign that a weaker market will become even weaker.

There are different ways to play defensive during uncertain times. You can buy gold or shares of gold stocks. You can also buy consumer staples stocks. You can buy nothing or you can sell all your stocks. Whatever you do, don’t lose sight of what you want for your portfolio long term and think strategically.

Since the late spring, I’ve been unloading shares of stock. I’m either selling portions of my positions or all of them to either collect profits or reduce my exposure to the market. I have still been buying shares here and there, but not as actively as I used to. This has nothing to do with North Korea. Rather, it’s more about the market, which has been pulling back since the end of April. Maybe eventually, it will have everything to do with a conflict with North Korea. Regardless of what happens, I’ll let the charts guide me, not my fear.

 

 

 

 

 

The Transparent RRSP: Summer Reading

The Week of July 17
  • I took no action for the RRSP.

Instead, all week I’ve been stewing and brewing over something I wrote two weeks ago:

This week, I was actually considering buying shares of APH.TO for the RRSP, but it’s not quite ready yet. I know this one is capable of developing really good patterns. Once I see the trading range tighten, the selling volume lessen, and a pattern improvement on the daily and weekly charts, then I’ll pick the price I’d like to enter at and I’ll put in an order. I’ll give it another couple of weeks. If it ends up going up while I’m waiting for these things to align, I won’t be too concerned if I miss the run. It will either set up again later or I’ll find something else.

So, APH had a major breakout three trading days after that post. The setup I was identifying actually happened – just a lot sooner. I took my eye off the ball. So, I went with my next play. Last week, I bought ECN at $4.03 with a strong feeling that it was going to take out a previous low of $3.87, which it did only three trading days after I put in my limit order.

 

APH ECN

Price charts for APH.TO and ECN.TO on freestockcharts.com

 

I was right both times. The problem is, I’m left frustrated, mainly because I missed the stock that had the bigger move. You know what’s worse than losing money for most traders?

  • Exiting a stock too soon and leaving money on the table;
  • Missing out on something you knew was going to happen;
  • Overcompensating for either of the above two reasons.

I actually shouldn’t be frustrated. Let’s say I never noticed APH at all. I would take that ECN trade any day and I’d be okay with it.

Trading Psychology

Trading psychology is actually a ‘thing.’ I once had a trading coach – an infinitely kind, generous, patient, uber positive day trader based out of Colorado. He was really into trading psychology and he consistently banged the drum on the importance of visualization, meditation, and forming a strong belief system supported by mindful practice. He got me reading Psycho Cybernetics and books by Tony Robbins, among many other things. This reading took me down a path of self-exploration deeper than any other self-improving attempt I’d made in the past. This was when trading had changed me.

I learned that most of what drives our decisions is conscious, but so much of what drives our actual actions is subconscious. A common action for traders is to right a wrong. When we lose, we become prone to overtrading or overcompensating for something we should’ve done instead. We try to make back what we lost or make what we should’ve made on something we ‘knew’ would work. The reality is, there is no certainty in markets and everybody knows this. Nor is there total certainty about anything in life.

I finished reading Market Wizards, a great book featuring interviews with top traders in the U.S. These traders all had their own unique strategies, their special recipes for success. What they had in common, however, led to their success: tested strategies, experience, persistence, the need to manage their losses, and learning to deal with the uncertainties of the market.

In this book was also an interview with Dr. Van K.Tharp, a psychologist who focuses on the psychology of trading. It was so fascinating to read about how this psychologist understands the thought process behind trading and has dedicated his work to helping traders get past mental and emotional road blocks in order to achieve their goals for success. Of course, I ordered one of his books from Amazon. I’ll be reading Super Trader – Make Consistent Profits in Good and Bad Markets over the next few weeks as I also read Edwin Lefevre’s Reminiscences of a Stock Operator.

Am I upset about missing the move on APH?  150% yes. Have I missed other amazing opportunities in the past? Yes, hundreds of times. Has that ever stopped me from making other decisions with good payoff? No. Will I miss other great opportunities in the future? Of course. Will I take other great opportunities in the future? You betcha.

The market will always be there. Opportunities will always present themselves. I will try to be ready for them, but I can’t catch them all. Learning and growing from these experiences is part of the fun and adventure of trading. I know I’ll get over this missed trade with APH. I hope that things work out with ECN and that I’ll have another few opportunities to buy more shares of it. One day, APH will present yet another opportunity and I will do my best to be ready.

 

Trading Dreams and Stocks to Watch

Trading Dreams Can Reveal Good Ideas 

I have always been prone to having work dreams after I’ve been at a place for a while. When I was a very active trader, price charts were a constant occurrence in my dreams in which they had the strangest capacities. For instance, I couldn’t open a door until a stock price went up another 50 cents. Or I couldn’t get to a party until I made $1000 on a trade, so I’d have three trades open. Weird stuff like that.

I had one profound dream where I was talking to my buddy about stocks. In real life, I knew he had gambled unsuccessfully on penny stocks and sports. In this dream, we were catching up while looking at a glass wall that had a stock chart on it.

He told me that he stopped wasting his time on penny stocks. Instead, he decided to keep things simple. He bought the stock of a company that made sense to him. This company started to become successful rather quickly. Every time he had extra savings, he would just buy more shares and increase his position. Over the next five years, the stock kept going higher in share price. As he explained this, the chart on the glass wall started to grow live on a timeline. The chart finally stopped moving once it reached the present day. At that point, he was up $18,000 with that one stock.

Scaling In

While I don’t believe it’s a good idea to put all your money into one stock, I do believe in the strategy of adding to a good position. At the time of this dream, I wasn’t confident enough in my own methods to add to any position. If anything, I was exiting too soon. Over the years, I got over my fears; it eventually became a practice I employ in the situations I feel most confident in.

I’ll often decide on a stock because I like the chart and its sector. My initial strategy might be shorter term. I might sell shares to take profits or lighten my position and just keep some shares for the longer term. Other times, I’ll change my outlook. If the chart and the stock show more potential for longer term growth, I’ll buy more shares of it at the next opportune setup.

I don’t think of investment decisions in definite terms because there’s no way to predict exactly how much you’re going to make. I like the idea of interacting with your investments over time in order to be fluid with the demands of the market or to take advantage of new opportunities that come up.

My Own Stocks

The market has been doing a nicely controlled correction – thankfully, it hasn’t dropped rapidly. I don’t know if it will react further to the news next week if we find out for sure that interest rates will go up. The market doesn’t like surprises, so if interest rates do go up, then there should be no major shock to the market. If anything, the anticipated news is already priced into the market and we can move on once it comes out.

I’ve been casually looking for stocks, yet I haven’t been very inspired by much of what I’ve seen out there. When this happens, I become more interested in watching how the stocks in my own TFSA portfolio are doing. Some of them are either consolidating nicely or seem to be doing their own thing. Here are some of my stocks that I might scale into:

  • ZPR.TO
  • MSI.TO
  • ECN.TO

These other ones I’ll be watching for more confirmations from the sector and/or market:

  • BBD.B.TO
  • EXE.TO
  • TECK.TO
  • APH.TO

This week, I was actually considering buying shares of APH.TO for the RRSP, but it’s not quite ready yet. I know this one is capable of developing really good patterns. Once I see the trading range tighten, the selling volume lessen, and a pattern improvement on the daily and weekly charts, then I’ll pick the price I’d like to enter at and I’ll put in an order. I’ll give it another couple of weeks. If it ends up going up while I’m waiting for these things to align, I won’t be too concerned if I miss the run. It will either set up again later or I’ll find something else.


N.B.

The last thing I want to do is to make stock calls for the purpose of getting others to pump up my own stocks. I tend to pick stocks that trade higher in volume, so price jumps are less likely to occur unless A LOT of investors step in. I lack that kind of influence – this is a low-key blog, not BNN. I expect investors to do their own necessary due diligence before making investment decisions.

 

The Transparent RRSP: My Own Stocks and Father’s Day

No actions taken the week of June 12

It’s been a very busy week for me, but it’s a good time to be busy as the markets are still looking like they’re headed lower. I don’t feel the need to take action quite yet. The US markets need to go down through May’s lows – at the very least – before going up again. This could affect the Canadian market; we have already been weakening the last couple of months and going through our own correction. If the US market goes down more and we don’t, then that’s a good sign for us that our correction could be over.

markets.jpg

Price charts of QQQ, AAPL, XIC, and SPY on freestockcharts.com

Apple (AAPL) is a big part of the NASDAQ (ETF: QQQ) and it’s been weakest of the big tech stocks (Facebook, Amazon, Netflix, and Google). Until it stops going down and levels out, it will continue to lead the NASDAQ down.

It’ll be interesting to see if the rest of the US market follows suit. I’ll keep my eye on the S&P 500 (the SPY ETF). Its financial sector (XLF) has been quite strong, but this sector is due for a correction. A slower summer market could cause it to stall and look less inspiring to investors. A correction in the financial sector could take the SPY down. There was a lot of selling last week in some of the big US banks (BAC, JPM and WFC) as well as Visa (V). Other big financial stocks (C, MA, and AXP) were trading strong. A divergence between a sector’s biggest stocks creates uncertainty.

Summer Trading Means Fewer Selections

Often, when the leading market heads lower, other markets eventually do the same. However, it can be different in the summer because of less trading volume. Performance is more stock and sector specific and less market dominant.

Investors and traders pile onto the fewer, more promising opportunities that stand out. Sectors kind of do their own thing and are less prone to overall market moves because there’s less of a dominant trend. It becomes more obvious which sectors are stronger and which ones are weaker. It’s actually a very good time to look for sectors and stocks that are about to embark on a new move or trend before it gets busier again in the fall.

For me, the summer is usually the time when I focus on the quiet under-performing sectors and I try to see if there will be a new longer-term opportunity in it. I’m going to watch the Canadian financial sector as it’s been weak since late February. I feel that it should correct just a titch more, and if it does, I will watch very closely for when it sets up again. If this happens, Canadian banks, here I come!

I didn’t have time to do a stock search this week – I only had time to look at my own portfolio. Here are a few of my stocks that I’m considering buying more shares of:

  • Aphria Inc. | APH.TO
  • Aritzia | ATZ
  • Bombardier | BBD.B
  • BMO SP TSX Laddered Index ETF | ZPR
  • ECN Capital Corp. | ECN
  • Extendicare REIT | EXE

I’ve been complaining a lot about having too many stocks. It’s better for me to focus on what I have and get more shares of the ones that I like. I just have to wait for a new entry point.


Thanks Dad!

My dad passed away in 2009. He was 59 and battling a long-term ailment. At least I can say that shortly before his death, he was living life to the fullest. What happened to me after his passing was something worth thinking about. Without his guidance, his half-believable stories, and hilarious anecdotes, I had to use whatever resources he’d passed onto me to keep going. I’m sure this recognition was all subconscious, but I finally had the courage to see things for what they were and let them go in order to do the things I most wanted to do. I took a promotion at my job, saw my career trajectory and said, “On second thought, I’m going to learn how to trade stocks. However that turns out.” The rest is my history.

I’m halfway through reading Jack D. Schwager’s, Market Wizards: Interviews with Top Traders. It’s been an incredible read so far. I’ve heard of some of these guys before. It’s so cool to hear about how they all had to overcome so many barriers to get to where they were. One thing none of them had to overcome was their gender. I can honestly say that neither have I, even though I am a woman.

Since I was young, my dad convinced me that being a girl was an advantage. His dad, my grandfather, was in the US Army, and he was away a lot. He served in WW2 and in Korea. So my grandmother ran the show when my grandpa was away. My dad was the youngest of seven siblings, four of whom were older, amazing sisters. My dad ended up being a very macho guy – who saw women as being greater than anything macho.

Because of my dad, I never felt disadvantaged for being a woman. I actually thought that I could do whatever I wanted to because I was female – he’d long convinced me it gave me an edge. Maybe it is true – our society has yet to accept this concept. Or maybe he just told me a tall tale knowing what I’d be up against. As I got older, I became more painfully aware of the disadvantages women frequently encounter. I love trading because the market doesn’t care about your personal details. You’re either in at the right time and right price, or you’re not. It doesn’t get more gender neutral than that.

As I’m reading Market Wizards, I feel that I can relate to these traders on so many levels, but it feels a bit too much like a boys club. I know there are a lot of extremely successful female traders out there. We’ll just have to cover our own stories. Whether or not I become a market wizard worth writing about one day, I’m sure my dad would be proud of me.

Happy Father’s Day, Dad!

 

The Transparent RRSP: Stock Picks

Action taken the week of May 29
  • I deposited $150.00 into the RRSP account. There is now $169.90 of available cash in the account.

I’m still waiting to see if the Canadian market will have a more definitive correction than what it gave in May. It could set up over the next few weeks/months for a new run, but I doubt it. The monthly chart looks like the market is inching downward. I still would like to see the market come down to the same level it was at in mid-November.

With the lower trading volume during the summer months, I put less emphasis on the market (as long as it’s not making any extreme moves that invite concern or attention) and I pay more attention to individual stocks that are getting a lot of action. I might casually pad my trading accounts now and then with extra cash so that should opportunities present themselves, I’m ready to take action.


Some Stock Picks

I found some stocks with nice charts, some of which are seeing a lot of recent action in price moves and trade volume. These have been trading better than the market – which doesn’t say much.

  • BBD.B.TO – I don’t like that Bombardier has gone straight up the last two weeks, but it’s been stronger than the market. I would prefer a correction on the daily time frame. It’s worth watching as the weekly chart is promising with a breakaway candle that held strong with increasing volume. I’ve owned this stock since early February 2016 and I can tell you that it’s not much of a mover. This can be a good thing when this stock experiences volatility because it’s less of a shock to your portfolio (unless you have a lot of shares and took on too much risk). While the monthly chart is very nice, the yearly chart is not inspiring.
  • BTO.TO
  • HGU.TO (This is a gold ETF.)
  • TD.TO
  • MG.TO
  • RY.TO
  • NA.TO
  • TA.TO – This is already in the RRSP. I was beyond busy this week and I wish I had a chance to look at the chart earlier this week. Depending on what it does next week, I might buy more shares.

If you’re not inspired to take on any risk, you can just watch these over the next few weeks and months and see how they do with or without the market. If you do feel inspired to trade, I’d recommend taking on less risk and buying fewer shares. I only say this because I still think the market will correct further and this could take down your stock and it could be a while before it starts to improve.

As always, please keep in mind the industry, sector, the company and its fundamentals, any recent news, upcoming earnings announcements, the amount of risk you’re taking, how it fits within your portfolio, your anticipated time horizon, etc. It’s always important that you look into what you need to in order to feel confident in your investments.

The Transparent RRSP: Just Watching

No action was taken the week of May 15 
  • I had been uneasy about the market all week, so my only play was to sit on my hands.

The last few months, I’ve been chipping away at making my trades easier to track, record, and analyze. This process was always interrupted by the market, attractive stock picks, sections of my portfolio that needed immediate attention, and addictive Netflix series. Each time I got back to where I left off, I found I disliked my method or format. You would think that after all these years, I’d have figured this out by now.

With summer coming, I expect the market to lighten up in volume and offer fewer opportunities. This means it’s a good time to get back on track with getting organized. I’ve been spring cleaning my house as well as all the portfolio information that I manage, making a bit of progress each day. It feels great to de-clutter my living space and streamline all the pertinent information for my trades. All I can do is keep at it until I’m in a place where I can function effectively on a consistent basis – and still watch my Netflix!


What a week! Here is my market analysis:
xic

The XIC ETF on freestockcharts.com

#1. The trade volume candlestick bars of April 24 and April 25 show an abnormal amount of buying.

With all that buying, there was such little price movement as you can see by the small size of the price candlestick bars. Big volume with little price movement often signifies a reversal. To trade beyond those prices would require even more buying. The following volume bars show that the market could not sustain so much buying. Another thing to note: we have not penetrated those prices since.

#2. What messy, volatile trading!

After April 25, there was more selling than buying. The candles show wider trading ranges, particularly the red bars, which depict heavier selling. I drew a square around this week alone to show you how, in such a short amount of time, the market can drop because of uncertainty, volatility, and buying fatigue.

On Wednesday (the day of that big red candle, third to last), the US market reacted to bad political news and this affected us (as well as many other markets). I believe that generally, markets are more prone to news when they’re already uncertain or weak. A strong market won’t be affected very much or will bounce back quickly. The following Thursday and Friday did show some buying. It will be interesting to see whether or not we can get back up to the previous trading ranges of the last two to three months.

#3. Lots of selling volume.

The trade volume over the last four weeks shows mostly selling. When you’re looking at longer time frames for longer-term buying opportunities, this situation is not tantalizing.

#4. First red monthly candle in almost a year!

We hit a new 2017 low with that one little day on Wednesday this week. What I like about the monthly chart is that it provides a bigger, clearer perspective.

The last time we saw significant selling volume was in June last year (remember the Brexit referendum?) and before that, the last major selling low was in January 2016. We’ve been going up for a year and a half. This new low is minor compared to the massive run we had. Way to go, Canada! If your portfolio didn’t do well last year, then maybe you should take a break from your advisor and consider buying a market index ETF – once it’s a good time to get in.


It will be interesting to see how we trade until the end of May. Whether we close positive or negative, this summer I would like to see a more substantial correction that comes down all the way back to where we were in November before going up again. For most folks – especially unrealistically optimistic people like me – this seems like a drastic thing to wish for. However, I believe that if you want a meaningful run in the market, you need a meaningful correction, not a one day sell-off like Wednesday’s.

I will be watching for how the US market impacts the Canadian market. The tech sector needs to take a break while the energy sector looks like it’s itching to make a run to the upside. I don’t think oil will ever trade back to its previous inflated levels, but I do think it will make a very short-term bullish move along with a short-lived rush in the gold sector. I don’t know if that would be enough to help the US market continue its upward trend. The Canadian market could still go down on its own, but it will to a greater degree if the US also makes a considerable correction.

 

Your Special 4/20 Newsletter of 2017: Medicinal Stocks

“What weed stock should I buy?”

If there is one question I am asked the most, it’s the cannabis question. I’m asked about this more than whether to buy Facebook, Apple, or Lululemon. I don’t know anything about cannabis strains, but I can speak a bit more about cannabis stocks.


2016 to 2017

Last year I posted a newsletter on this celebrated day. I listed a few stocks to check out:

  • Canopy Growth Corporation | Ticker symbol CGC.V | $2.60
  • Aphria Incorporated | APH.V | $1.56
  • OrganiGram | OGI.V | $1.10
  • Mettrum Health | MT. V | $1.66
  • Emerald Health Botanicals | EMH.V | $ 0.17

This is where they’re at now:

  • Canopy Growth Corp.| Ticker symbol now WEED.TO on the TSX | $10.24
  • Aphria Inc. | APH.TO now on the TSX | $7
  • OrganiGram | $2.87
  • Mettrum Health | It halted trading at $7.05 because it’s merging with Canopy Growth Corporation
  • Emerald Health Botanicals| $ 1.54

WOW.

I wanted to buy all of them out of pure excitement, but at the time, it was a decision between me and JP. We decided on Aphria, mainly because of its price and proven earnings.


Cannabis presents a new industry for the public, and it’s still in its early stages as it’s working its way through various long and rigorous legalization processes. You can’t expect this journey to be straight and easy, but it’s going to happen whether you agree with legalization or not. (Interesting personal observation: Among the people who ask me what weed stocks to buy, half of them are very conservative and would never smoke it. The other half smoke it and still have shown no indication of buying any of these stocks.)

I remember the time when Colorado and the few other states were legalizing. It was impossible to tell which weed stocks to buy on the US exchanges. They each had the patterns of the new publicly traded company in a speculative industry: cheap with wild swings in volume and price moves. I had to wonder if a company was going places or was just another pump and dump.

I watched a lot of media coverage on Colorado. There was definitely a saturation of industry players – in other words, too many suppliers. Some went just as quickly as they arrived. The stronger, more resilient, established, and adaptive ones survived and endured. Others joined forces and resources to become bigger companies. It will be interesting to see how the industry plays out in Canada.

I’d purchased a couple of other weed stocks since, both of which trade on the TSX Venture Exchange. I bought shares of:

  • Maple Leaf Green World Inc. | MGW.V | 0.62 and
  • The Hydropothecary Corporation | THCX.V |$2.28

I did a quick search and found other stocks with good trading volume:

  • ICC International Cannabis Corp. | ICC.V | $1.29
  • Aurora Cannabis Inc. | ACB.V | $2.84
  • CanniMed Therapeutics Inc. | CMED.TO | $11.61

Oh! And I love that Horizons has created a new ETF: Horizons Medicinal Marijuana Life Sciences ETF (ticker symbol HMMJ.TO, $10.80). It’s got a wonderful mix of medicinal cannabis stocks from Canada, the US, and the UK, including one of my portfolio darlings, Aphria. It also owns some of the stocks mentioned in this newsletter so far. At some point, this ETF will start paying distributions (none yet). If this is a long-term investment for you, then you might want to hold this in your RRSP to avoid withholding taxes.

There are a few things to note about Canadian cannabis stocks. They’re inexpensive and they all overreact to any cannabis information that comes out of Trudeau’s mouth. They settle down after the market reaction to any news and shape up again for more investors to get on board before the prices go up for another run. It’s generally been run after run at higher and higher prices.

Most of these stocks trade very similarly to each other, with only their prices and trading ranges that might differ. If your stock isn’t moving like the others, you might have to wait longer to better see whether or not it’s a dud before getting rid of it. It also might just be a company that needs a lot more time before it proves itself to the market.

If you’re considering buying shares of cannabis stock, you’d have to look deeper into the company’s fundamentals. Remember, because they’re new and in their early phases of development, they all promise growth. I would pay most attention to company earnings and pick the one generating profits already.


The Cannabis Industry vs. the Market

Without trying to sound the alarm, I will strongly suggest that I feel that the market is going to have a major correction soon. The market had a huge nine-year run. We’re now facing rising inflation rates, a new US president, and heavier selling volume in the market as of late. Major stocks that had a good run outshining the market, are showing signs that their investors are now being cautious, even uncertain.

As proactive investors start to unload their positions, they’ll be executing their defensive plays (getting into utilities and consumer staples), as well as looking for what is trading on its own page and less affected by market moves. I think that cannabis stocks, given their industry newness and lower prices, will provide that opportunity for investors.

You might feel conflicted about cannabis and if you do, then you should probably feel the same way about alcohol. As we all know, booze was once outlawed and look at it now. The same will happen to weed. They say if you can’t beat them, then join them. What’s nice about a cannabis stock is that you don’t have to smoke it to own it.

 

 

 

 

The Transparent RRSP: Markets Closed

No actions were taken the week of April 10

This week has been a busy one for me. All week, I was getting my tax stuff in order. No, I haven’t filed yet! If you saw what I had to do to get ‘er done, you’d understand why I was procrastinating. If that’s not enough, I’m in the middle of moving.

The dreadful task of packing always necessitates decluttering. Moving forces me to ruthlessly get rid of what I no longer want or need. For the last month, I’d been going through my things and filling up boxes and bags of stuff I knew had no place in our lives anymore.

This drive to purge shifted to my TFSA. Mid-week, JP recommended that I sell two of my stocks he noticed were underperforming for a long time. They were in the money but had barely budged for a year. I sold them, then I sold four more stocks. I had way too many stocks – we’re talking 33 in this one account! I won’t even get into what’s in my US trading account. 33 is more than I could manage, but I guess I just kept buying them the way my brothers buy shoes and ball caps. This is what can happen if you pay very little in commissions per trade.

After we had a decent market last week, it was easy to see who the laggers were in my portfolio. I don’t mind active stocks that go up and even down, but I do mind the stocks that just don’t move at all. A healthy stock needs steady volume and a decent amount of movement. Without enough investor interest, they’re just duds.

Today, the Canadian and US markets were closed for Good Friday. The volume in the markets was low which is typical before a holiday weekend. People either don’t take on new positions or they sell or reduce their positions because they don’t want to hold them over a long weekend.

I feel lighter with fewer stocks to manage (yet I still own quite a few!) and more cash in my account. I might buy more shares of stocks I already own and am happy with. I’ll see what the market does next week and what my stocks do in relation to the market. Now, back to packing!

The Transparent RRSP: Post #15

Actions taken the week of April 3
  • I deposited $150.00.
  • I bought 25 shares of TransAlta (ticker symbol TA.TO) for $7.63 per share. This cost me $190.75 + 0.25 cents in commission which makes it $191.00 altogether.

This leaves me with $21.90 in cash. Penny stocks, anyone?

I bought shares of TA because the monthly chart caught my eye. The daily chart displays a long consolidation that shows this stock has been trading in this price range since late November. I had been checking this stock out for a few months now. I never took action because I wanted to wait for a better setup on the monthly chart. The weekly chart is a little sloppy, but I’m not as concerned because of its strong monthly chart.

ta

TA price charts on freestockcharts.com


I’ll just mention that for my TFSA, I bought some shares of TransAlta Renewables (a subsidiary of TransAlta, ticker symbol RNW.TO) at $15.73. I feel like I was late to the party for this one. I just kept missing the good entries. Its price moves are around $2 in range (as you can see from the arrows on the chart below). This stock has already moved up $1.30 since its last selloff in early March. If this goes up from here, it’ll probably stall at around $16.50. We shall see.

I’m not thrilled about the monthly chart; however, the daily and weekly charts, volume action, and monthly dividends made me want in. I like subsequent consolidations because it shows a lot of consensus among investors in price areas just below my entry. This is what traders call ‘support’ because if the stock does fall below my entry point, it’ll likely land softly around the $15.00 area where a lot of people have been buying shares at since January. I’m counting on strength in numbers to hold this stock up.

rnw

RNW price charts on freestockcharts.com

The market was positive this week. If nothing out of the ordinary happens (politically/economically), the market will likely trickle up for the rest of the month.