Benjamin Borden's "Best Canadian Stocks"

Well we’re a couple of weeks out since I assembled my “team” for the first stage of the new bull run. How are the boys doing?

Well right now Jimmy Stewart (VT.TO) is sleeping peacefully. But hopefully he’ll wake up soon and go on a 38 hour non-stop rant in front of congress. Brad Pitt (COS.TO) is weighing his options – it looks like he is thinking about having another baby while simultaneously releasing 5 new movies but hasn’t quite committed to it yet. And my mystery homeless man (BIM.TO) is still trying to communicate something to me but just ends up babbling incoherently and getting spittle on my shirt.

So am I going to bench any of these guys yet? Nope. I’ve got one word for you: Bollinger Bands (yes I know that’s actually two words). You see, all three of their charts are showing the bollinger bands getting very tight. This usually means that a change in price level is close at hand. Could go up and could go down, but now that all three are trading above their 200 day moving averages tends to favor moves to the upside.

Old Jimmy’s (VT.TO’s) chart is especially hinting at an upside move – tightening Bollinger Bands, a curving upward 200 day moving average becoming support, and noticable bump in average volume in the past 3 months.

Now here is a graph you love to see. Wake up Jimmy – the nation needs you!