View from Toronto: Trade Ideas for US, Canadian Markets


Ziad Jasani Image Ziad Jasani Managing Director and Partner, Independent Investor Institute

Here are a dozen or so trade ideas for the U.S. and Canadian markets and a strategic market outlook summary for the week of August 7-11, in a weekly video report by Ziad Jasani.

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• Implications U.S.: S&P 500 projects downwards to 2,440-35 with better odds of breaking below to end the week and starting a move towards 2,400.

• Growth-based spaces under-perform (Technology, Discretionaries, Industrials), Financials have some “staying” power on Yields popping from August 4 Jobs data. However, Materials/Mining and Energy are likely to face pressure from a rising USD and weaken to the end of the week.

• Defensives (including Bonds, Gold) unfavorable the front end of week on rising USD and yields but may out-perform on August 11 CPI (Inflation) data.

• Trade-able short-term front half of week ↑ (US):

ProShares Short S&P500 ETF (SH)
ProShares Short Russell2000 ETF (RWM)
ProShares Short QQQ ETF (PSQ)
ProShares Short MSCI Emerging Mark ETF (EUM)

• Implications Canada: TSX is tied to Oil which has “overheated.” All short-term technical support a pull-back in Oil and the Commodity-Complex in general.