Benjamin Borden's "Best Canadian Stocks"

A nasty dive in the TSX this morning stopped me out of everything except good ol’ Swiss Water Decaf. I am now about 80% cash. This has been a rough year so far, but I will wait for another chance to get back into this market. Things could go either way from here. In the bullish argument, the 200 DMA of the TSX index is still pointing up, and today’s action might be indicative of a washout – with the VIX up around 20% and the selling to buying volume being around 10 to 1. However, in the bearish camp, the price action of many stocks is now decisively below the 200 DMA and as per my previous post, the long term direction is toward lower P/E ratios. So a downward grind might continue for a while longer still.

Personally, since I am mostly in cash now, I am hoping for a good bearish scenario to develop so that it provides an absolute washout buying opportunity at some point in the near future for some of my best Canadian stocks.

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