AM 1150 Kelowna - Radio Rallies & Reversals

From a technical perspective, North American equity markets have so far avoided breaching the 15% correction support level, which when breached has historically lead to a bear market 80% of the time. While the 200 day moving average has proven to be a support line for the TSX composite index, it is proving to be a line of resistance for US and international indices. Should US and international stock market indices fail to break through to the upside once again, consider using this recent bounce as an opportunity to reduce your broad stock market exposure. In the case of the TSX composite index, the 50 day moving average is the line to watch.

If you must remain invested because the rates on cash are so pathetic, consider rotating into seasonal plays such as the 'triple combo' I spoke of yesterday, that being: utilities, gold and oil. For longer-term investors, the recent correction may be an opportunity to add to quality dividend paying stocks, which I talked about this morning. And for 'accredited' investors, consider alternative investment strategies.

As I mentioned this morning, we've recently updated our list of Toronto traded stocks which have increased their dividend since 2008. Contact us at yourlifeyourplan.ca or call 1-800-663-2609 and ask for a copy.

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