Bio: Ken is an officer and director and chief investment strategist of CastleMoore Inc., a portfolio management company.
Ken is a graduate of McMaster University in Hamilton Ontario and has qualified as a Chartered Market Technician as well as attaining a number of industry specific qualifications in the trading of Futures and Options.
After serving three years in the Canadian Armed Forces, he entered the financial services industry as a mortgage officer with a large Canadian trust company. Ken entered the investment business and became the manager of the Hamilton and St. Catherines offices of Merrill Lynch Canada before becoming a founding partner and major shareholder of Market Street Investment House, a retail investment dealer. He sold his firm in the first quarter of 2000, realizing his life goal of selling at the top. Ken then became a director of Quest Capital Group, a day trading investment dealer. He subsequently established The Glen Nova Division of The Glen Ardith Company Ltd., an investment counseling firm.
Ken served as the chairman of the Hamilton Investment Dealer's Association and member of the IDA's Ontario District Council, in the late 1970's. He also served on the Board of Directors of the Canadian Society of Technical Analysts and as its President in the early 1990's.
Q: Mr. Norquay, in the face of the recent volatility in the stock market, a number of elliot wave practitioners are calling the recent rally from the lows a bear market rally and that we are now in a secular downtrend, does your analysis concur with this view?
A. Almost. My heart tells me the Elliott Wavers are right. But my best technical model has not yet given a sell signal for the stock market.
Q: What is your near and long term outlook for the Canadian Dollar and the US Dollar? While the general viewpoint of most market commentators calls for a decline in the US Dollar, I have heard a few technical analysts (primarily the elliot wave practitioners again) call for a secular uptrend in the UD Dollar, once again is do you or do you not concur with this view and why?
A: Our view is: CD$ down, US$ up. This time our models agree with the Elliot Wavers.
Q: What are your thoughts on the energy sector that is crude oil and natural gas in the next few months?
A: I have no opinion. Since the big wash out in crude from July 08 to Feb 09, this year’s action looks like a base and a break out. Oil looks higher. But I don’t trust it. Gas is crazy. Wild and volatile. I do not feel confident in the energy sector.
Q: Given that cyclical stocks have outperformed defensives in this rally since March 2009, can you please highlight one sector among Canadian stocks (e.g. can be financials, energy stocks, technology, resources etc.) that you believe to be overbought and due for a correction and one sector that you believe to be oversold and due for a bounce and why?
A: Overbought = Financials, Oversold = Nil
Q: Lastly, can you please highlight 1 stock that you think offers the best technicals moving forward and your reasons for liking it?
A: Deere & Company, usually known by its brand name John Deere (NYSE: DE) looks like a massive head and shoulders bottom.
Thank You Mr. Norquay!
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