A Comment -- General Comments From an Expert (A Commentary)

Stochastic. When to Sell? Uses Relative strength Indicator (RSI), Moving Average Convergance/Divergance (MACD) with the stochastic. All 3 indicators moving in the same direction has more impact. Also likes Volume Reversal, which is important when entering into a seasonal trade. Caution, once a chart has established a trend, don’t use stochastics.

Silver. Seasonally you are just in the sweet spot. Price of silver goes higher from October right through to the middle of February. Has a lot to do with trending gold but also silver is an industrial commodity. Word of caution. Some silver stocks are giving short-term Sell signals so you want to Buy on weakness.

Natural Gas. Prices are low and anticipated to stay low by most observers because of US overproduction in shale gas. Expects low prices will persist for most of 2011 with a little recovery at the end of 2011. Bullish on gas prices long but couldn’t say when. Have 20 years at most counting proof reserves. Once people start to realize it is a finite resource, there will be a price recovery.

Natural Gas. He is very much long. Expects market to become aware of limited gas in the latter part of 2011. Prices will start picking up. His portfolios are marginally more gas weighted versus oil and that is likely to increase going in to 2011.

Oil. Expected to return to higher prices. No supply problem yet but there is a production problem. World doesn’t seem to be able to produce more than 90 million barrels a day. Demand is growing globally and projections indicate a scarcity in North America in the next couple of years.

Canadian Financial ETFs? He is Holding and writing covered calls against them to generate income and to operate as a hedge. He prefers Equal Weight Bank ETF (ZEB-T) as he is not interested in the insurance companies.

Maximum time for optioning to maximize premiums? He normally uses 6 to 7 months, which is not as profitable as 3 months but gives him better downside protection.

Is waiting for a pull back or correction before buying more mining stocks right now.

US economy is getting better. The only thing we are not seeing is more jobs. Jobs always lag the economy. Job openings in October were the highest they ever have been. By the end of 2011 he predicts it will get back to 8%. For people with College degrees, the outlook is not too bad. Corporate profits are at record levels. Commodity prices are going to stay high and possibly go higher because there isn’t enough to supply China. He is mostly staying away from commodities. Until interest rates go up, he will not buy bonds for clients.

Tonight's program is a repeat of December 1st so there will be no comments. Presumably they lost a guest so I get tonight off! See you Monday. Bill

Please note. A Top Pick of Mike Newton's yesterday, Magna International (MGA-N) had an incorrect symbol MGA-T so e-mails sent out in last night's mail were incorrect. My apologies to Mike. Also my thanks to Infojoe for drawing this to my attention. Bill

Natural Gas. 2 types, wet and dry. Dry is without associated liquids and wet will include propane, butane or ethane, which are priced off of oil and help offset natural gas prices.

Stop Losses. These are always very controversial. He doesn’t place Stop/Losses into the market but holds them out to the side. If you have a line in the sand on which you want to get out, have your own reminder. You can always get back in.

Uranium has finally has some pretty sharp movement. Ontario’s new statement on energy policy going forward has to bode well on uranium in the long term. There is such a long lead time on having facilities built it could be 10 years before there is a plant up and running.

Cdn Bank Preferred Shares? Looking very attractive. You can find a lot of bank preferreds with yields between 5.5% and 6% and relatively safe. Would be cautious on some of the more recent issues such as Step-Ups.