Market Call

Keith Richards' Top Picks: December 18, 2023

Keith Richards, president and chief portfolio manager, ValueTrend Wealth Management

FOCUS: Technical analysis 


MARKET OUTLOOK:

We’re holding a bit of cash (seven per cent), but we are forced to continue legging in so long as the uptrend stays intact. We’re focusing on value plays that are coming off of a solid support base rather than chasing the hot sectors.

Our risk/reward indicator, known as the bear-o-meter, reads three out of a potential eight points. That’s a low-neutral score. But there’s a reason why the bear-o-meter reads only a three, even though we are in a seasonably good time of the year and the trend is up. Underlying all of that good news of late are some warnings.

Specifically, we are looking at various breadth indicators showing weakness, some sentiment indicators suggesting investor complacency, and momentum studies suggesting a stretched price. I think what this means is that we’d better be prepared to sell if the trend starts to reverse. The underlying structure isn’t there to support anything but a perfect environment.

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TOP PICKS:

Keith Richards' Top Picks

Keith Richards, president and chief portfolio manager at ValueTrend Wealth Management, discusses his top picks: VanEck Oil Services ETF, CDN Western Bank, and SNC.

VanEck Oil Services ETF (OIH NYSEARCA)

CDN WESTERN BANK (CWB TSX)

CDN WESTERN BANK (CWB TSX)

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
VanEck Oil Services ETF (OIH NYSEARCA) Y Y Y
CWB TSX Y Y Y
CDN WESTERN BANK (CWB TSX) Y Y Y

 

PAST PICKS: November 10, 2023

Keith Richards' Past Picks

Keith Richards, president and chief portfolio manager at ValueTrend Wealth Management, discusses his past picks: Consumer Staples Select Sector SPDR Fund, Physical Platinum Shares ETF, and Enbridge.

Consumer Staples Select Sector SPDR Fund (XLP NYSEARCA)

  • Then: US$68.96
  • Now: US$70.97
  • Return: 3%
  • Total Return: 4%

Physical Platinum Shares ETF (PPLT NYSEARCA)

  • Then: US$78.01
  • Now: US$87.79
  • Return: 12%
  • Total Return: 12%

Enbridge (ENB TSX)

  • Then: $46.10
  • Now: $47.71
  • Return: 3%
  • Total Return: 5%

Total Return Average: 7%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
XLP NYSEARCA Y Y Y
PPLT NYSEARCA Y Y Y
ENB TSX Y Y Y