Bill Carrigan is the founder of GettingTechnical.com [GT], an independent financial analysis tool used by financial advisers and professional investors. He uses technical and quantitative data to create index timing and stock filtering models.
|Rotation portfolio||S&P/TSX||S&P 500|
*=Audited returns for period ended March 31
Horizon 60 BEAR ETF (HXD-TSX) $21.06
Stop loss at $20
The Horizon 60 Bear ETF operates inversely to the TSX 60. Mr. Carrigan say's "this product is used predominantly as a tool to reduce exposure to the long side of the market and offset any corrective period."
Nortel Networks Corp. (NT-TSX) $26.75
Stop loss at $25
Nortel is Mr. Carrigan's defensive play. He says it's "a good place to park some money."
Magna International (MG.A-TSX) $96.80
Stop loss at $90
Mr. Carrigan likes Magna for its potential exposure to the Russian economy should their pending auto parts deal firm up.
PAST PICKS Aug. 11, 2006
Cott Corp. (BCB-TSX)
Then: $16.73 Now: $15.96, -4.6%
Stop loss at $14.50
Patheon Inc. (PTI-TSX)
Then: $5.95 Now: $4.02, -32.4%
Stop loss $5.20
CAE Inc. (CAE-TSX)
Then: $9.07 Now: $14.37 Up: 58.4%
Stop loss at $8.20
* Still long, new stop loss $12.50
Mr. Carrigan sees the rising U.S. interest rates and the Canadian 10-year note pushing up to 5.5% as a "big problem that could plausibly ignite selling across all sectors". With this in mind he believes the "best strategy is to reduce equity exposure through to the end of the third quarter of 2007. "
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