February 6, 2018

U.S markets were once again not boring today, opening down then bouncing around considerably and then closely strongly higher.

The S&P 500 finished up 1.7%, the DOW was up 2.3% and Toronto was up 0.2%.

Boston Pizza was a notable winner today, up 5.3%.

Fortis Inc. was down 2.2% and despite the fact that high yield stocks could certainly decline with higher rates, it seems attractive for the dividend and may be worth accumulating. Simply be prepared to hold for a very long time and/or to accumulate more on further declines.

I bought back, at $46.08, some of the Toll Brothers shares that I had sold in the past few months at $50 and $51.50. It closed at $46.75 so that trade looks okay so far. But I should have employed a strategy I talked about before. Toll Closed on Monday at $44.82. It opened this morning at $43.70. But I was not watching the market at the open. If I had placed an order last evening at any price higher than $43.70 (say I placed it at $45) I would have got it at the opening price of $43.70. I have used the strategy before of a limit order placed after the close. If you place a limit order just under the market during the trading day you are not going to get a fill much if any below your order price. But a limit order placed before the opening could be filled far lower if the market happens to open low. Now, you do take the risk that while you buy somewhat low, the market then heads even lower. Overall the strategy of entering an order around or not much lower than close in highly volatile times could result in a low fill at the opening. Of course you could also simply place an order during the trading day well below the market. The method I describe is applicable to be used when a stock has already closed at what you consider an attractive price so you place your order there but all the better if it opens lower.

It’s sad to see the escalating trade war between Alberta and B.C. I have always thought that the B.C. government has no jurisdiction over the federally-approved TransMountain pipeline. The B.C. government gave its input in the federal proceedings but then the federal government made its decision. I would like to see Trudeau swiftly assert federal powers and do so just as forcefully as necessary. (How far should he go? Well hopefully, just watch him!) I am a long-time resident of Alberta and was born and raised in Nova Scotia. But I have never considered myself a citizen of anything other than Canada. Inter-provincial trade barriers are an outrage.