March 26, 2017

On Friday, the S&P 500 was down 0.1% while Toronto was up 0.1%.

About the only large mover on our list was Ceapro up 6.4% But this is a penny stock and so big moves are to be expected. Small companies are allowed more time to release earnings and Ceapro has not yet released its Q4 numbers. I am waiting for the Q4 numbers in order to better understand the impact on costs of their recent large expansion in terms of their facility space and equipment. Unless there is a big increase in sales this expansion seems likely to be quite a drag on earnings in 2017.If that is the case AND if the company still looks good for the long term then we may get a good buying opportunity.

Futures markets, at the moment,  are suggesting that the DOW could open down 100 points. This would likely be a reaction to Trump’s failure to get a healthcare bill passed and what that says about his ability to get other (stock-market-friendly) bills passed. I do think that is a legitimate concern. However, from past experience the futures market is not always a good predictor of how the markets will actually open. The futures market is supposed to be the smart money. In reality it is more so the hot money that trades without taking time to think. In any case if the markets are to open lower there is nothing to be done but to react to that. (Such as by picking up stocks at lower prices) Some subscribers here may have the ability to buy or sell futures or at least to trade in the (oxymoronically-named)  pre-open market in the U.S. I am not set up with the ability to do either. Nor would I want to be.