Don Vialoux.
Don Vialoux is research analyst at Horizons ETF Management Canada. His focus is on technical analysis and seasonal investing.
Top Picks:
Technology Select Sector SPDR ETF (XLK NYSEARCA)
Seasonal influences turn positive in mid-October and continue until January. Technical parameters already are positive. The sector benefits from increasing demand for consumer electronic products during the Christmas buying season. Demand for new smart phones and smart pads are expected to be exceptional this Christmas.
iShares Trust Shares DJ Transportation Average Index Fund (IYT NYSEARCA)
Seasonal influences turn positive in mid-October and continue until early January. Technical parameters already are positive. The sector benefits from rising demand for transportation in the fourth quarter.
Consumer Discret Select Sector SPDR ETF (XLY NYSEARCA)
Seasonal influences turn positive in mid-October and continue until early January. Technical parameters currently are mixed. Demand for retail and entertainment services surges in the fourth quarter.
Past Picks: August 22, 2014
Global X Uranium ETF (URA NYSEARCA)
Then: $14.93; Now: $12.64 -15.34%; Total return: -15.34%
Global X Fertilizers/Potash ETF (SOIL NYSEARCA)
Then: $11.64; Now: $10.75 -7.73%; Total return: -7.73%
First Trust ISE - Revere Natural Gas Index Fund (FCG NYSEARCA)
Then: $20.38; Now: $17.30 -15.11%; Total return: -5.04%
Total return average: -9.37%
Market outlook:
Seasonal influences for North American equity markets between now and the end of October are negative. Technical parameters for North American equity markets currently are negative and have yet to show signs of bottoming. This October, a difficult third-quarter earnings report season will contribute to weakness partially due to strength in the U.S. dollar. Beyond October, seasonal influences turn positive. Indeed, the bottom of the stock market based on the U.S. four-year presidential cycle historically has occurred in October of a mid-term election year. The trigger for extra strength this year could be a change of control in the U.S. Senate from Democrats to Republicans during mid-term elections on November 4.