Farwell Wealth Management - ScotiaMcLeod Toronto

While we absolutely believe in the long term that stocks are a solid investment, we currently feel that the stock market is in a buy, hold for a few days, and sell pattern. It is with this "buy quickly and sell even quicker" mentality that we have decided to introduce the Farwell Focus Five…stocks that we want to hold for a very quick profit.

This list can include any stock but will likely lean to high beta fast moving stocks. Research in Motion, Suncor Energy, Apple Computer, Barrick Gold and Potash would be five examples of stocks we might decide to add to the Farwell Focus Five. Market sentiment, market volume, technical analysis and movement in the VIX Index (volatility index of the overall option market) and the general direction of the S&P500 Futures will be very important.

The intention is to have a list of five stocks we want to buy, hold for one, two or three days and then sell for a possible profit. Holding over a weekend is currently not an option as there is simply too much "breaking" news happening over the weekend that takes the ability to sell out of our hands.

It is important to remember that the Farwell Focus Five list will at most times include very volatile stocks and that substantial loss can occur. Even though we will have a very disciplined sell approach (current down 5% and out) there will be times when the stock we own actually falls much further than 5% before we can sell.

We are tailoring the Farwell Focus Five to high net worth clients (minimum $500,000 liquid assets) and we will be investing no more than 10% of a client account in the Farwell Focus Five.