Sid Mokhtari spoke in the afternoon session on "Using Systematic Processes for Investment Decisions". Sid Mokhtari is a Chartered Market Technician and Executive Director of CIBC World Markets. Their site is www.CIBC.ca.
Basically he talked about only buying when a stock has momentum. Momentum can drag your stock up. He said with analysts there are momentum guys, value guys and growth guys. He said that using momentum stocks do the best with value next and growth further behind. What he suggests is to buy value stocks when they have momentum.
He likes quantitative guys and their strategies. He looks at 9 monthly trend strategies. He said to be on the right side of a trend and buy with the momentum. He said to buy stocks that break out to the upside. He uses 180 day moving averages. This is a simple way to measure a trend. That is using a moving average.
He says to pick stocks that are trending. This is carpe momentum that is "seize the moment" in Latin. Funds use momentum, value and growth. The best returns are tied to momentum methodology. However, things that go up fast can fall fast also.
CIBC came up with 10 stocks to buy this month and sell at the end of the month. This is First Asset U.S. TrendLeaders Index ETF (CAD Hedged) with a symbol of SID on the TSX. See information this this ETF here. CIBC customers have done well with this system.
You can do different momentum tests and trend tests to pick stocks. Always make stock picking a system and a process.
On my other blog I wrote today about Linamar Corporation (TSX-LNR, OTC-LIMAF)... learn more. Next, I will write about Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF)... learn more on Wednesday, October 11, 2017 around 5 pm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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