Modern Investing Techniques — Episode 2

Modern Investing Techniques

Date: March 23, 2026

💰 Modern Investing Techniques — AI-Powered Daily Market Intelligence

Stocks jump and oil eases after Trump says Iran is talking with the U.S., despite Tehran’s denials.

Market Pulse: Markets are rallying on de-escalation hopes in the Middle East. The S&P 500 closed at 6,623 (+1.8%), the NASDAQ Composite at 22,087 (+2.0%), and the TSX Composite at 31,809 (+1.6%). Relief over a five-day pause on potential strikes against Iranian energy infrastructure is easing oil prices and lifting equities broadly. Canadian investors should watch how this affects energy-exposed names in the TSX while monitoring any shift in the USD and commodity-sensitive sectors.

Strategy Spotlight

Catalyst-Driven Sector Rotation on Geopolitical Relief

This strategy involves rapidly reallocating portfolio weightings toward sectors that benefit from reduced geopolitical risk once a major catalyst materializes. In today’s environment, Trump’s announcement of talks with Iran and the five-day hold on strikes against power plants triggered immediate relief in equities and a pullback in oil prices. The approach requires monitoring headline risk, then shifting exposure from defensive commodity plays into broader market or consumer-facing sectors that thrive when uncertainty drops.

Implementation example: Use a brokerage screener on Questrade or Wealthsimple to flag energy-heavy holdings, then rotate a 10-15% sleeve into broad-market or technology ETFs when oil prices ease more than 2% on de-escalation news. Historically this works best in the 24-72 hours following major geopolitical pauses, but carries the risk of rapid reversal if talks collapse. Always size positions to no more than 5% portfolio risk per rotation and use tight trailing stops.

Source: bnnbloomberg.ca

Investor Education: Order Flow and Temporary Liquidity Shocks

Imagine you placed a market order for an energy ETF last week when Middle East tensions spiked and the bid-ask spread widened from 3 cents to 18 cents in the opening 30 minutes of trading. Your fill came 0.4% worse than the last quoted price because buy-side liquidity evaporated as market makers pulled quotes amid headline risk.

What actually happens is that during geopolitical shocks, automated market makers and high-frequency participants temporarily reduce size or widen spreads to protect themselves, creating adverse selection for retail market orders. In the provided data, the U.S. dollar also lurched lower on the pause news, showing how macro flows can compound intraday liquidity effects.

Pro tip: Professionals always check the Level 2 order book or use a “limit order only” rule during the first 15 minutes after major headlines. The biggest mistake with order execution is using market orders into headline-driven volatility. Instead, always set a limit order at or better than the 20-period volume-weighted average price and be prepared to walk away if liquidity is thin.

Practice Investment of the Day

Disclaimer: This is a SIMULATED trade for educational purposes only. No real money is involved. This is NOT financial advice.

Trade Type: Weekly Hold

Today's Pick: LGD — Liberty Gold Corp. (TSX)

Market: TSX

Strategy: Asset monetization play following non-core project sale to fund flagship development.

Hold Period: Monday-Friday

AI Analysis:

• Catalyst: Announced sale of the Goldstrike Project for US$72.5 million in total consideration, providing capital to advance the flagship Black Pine Oxide Gold Project in Idaho.
• Technical Setup: Using daily timeframe, the stock sits near its 200-day moving average with volume expected to exceed the 20-day average on the news; nearest support at recent swing low, resistance at the 50-day moving average.
• Risk Assessment: Deal risk if financing or regulatory approvals falter; suggested stop-loss 8% below entry to limit maximum acceptable loss.
• Target: +4% to +9% by Friday close.
• Confidence Level: Medium — two factors aligned (clear monetization catalyst + fresh capital for higher-priority project) but offset by typical junior-mining execution uncertainty and lack of volume confirmation yet.

Why This Teaches: This simulated trade demonstrates how to evaluate corporate capital-recycling events rather than chasing raw commodity price moves. Listeners should learn to read press releases for “use of proceeds” language and compare the size of the cash infusion against the company’s market capitalization. Whether the position wins or loses, the discipline of waiting for a concrete balance-sheet catalyst instead of vague sector momentum is a repeatable edge.

Source: bnnbloomberg.ca

Tools & Techniques

Glass Lewis Proxy Voting Research:

Leading independent proxy advisory firm Glass Lewis has endorsed Aptose’s plan of arrangement. Canadian investors holding shares in companies undergoing mergers or acquisitions can access Glass Lewis reports (often summarized in company filings or through certain brokerage research portals) to inform their vote. This gives retail shareholders the same analytical framework institutional investors use when deciding whether to approve takeovers. Check your brokerage’s corporate actions section or SEDAR+ for the full circular when similar situations arise.

Source: bnnbloomberg.ca

NowVertical AI-Powered Delivery Acceleration Tracking:

NowVertical announced expansion of a cloud data migration engagement after using AI to accelerate delivery. While the specific platform is enterprise-focused, retail investors can track similar small-cap AI services companies by monitoring contract expansion announcements and using free tools like TradingView to set alerts on TSXV:NOW. This illustrates how AI is moving from hype to measurable productivity gains that can drive revenue for smaller technology names.

Source: bnnbloomberg.ca

Quick Hits

Bombardier Completes Consent Solicitation

Bombardier received the requisite written consents to amend the indenture governing its 7.450% Notes due 2034. Fixed-income investors in Canadian corporates should note that successful consent solicitations often reduce near-term refinancing risk and can support the issuer’s credit spreads.

Source: bnnbloomberg.ca

Arbutus Strong Cash Position

Arbutus reported cash, cash equivalents and marketable securities of $91.5M as of December 2025. Biotech investors can use this as a benchmark when screening for names with multi-year runways; a strong balance sheet reduces dilution risk in the current higher-interest-rate environment.

Source: bnnbloomberg.ca

BlackRock CEO on Staying Invested

BlackRock CEO Larry Fink urged clients to stay invested amid volatility while flagging AI as a major reshaping force. This reinforces a core rule for TFSA and RRSP portfolios: avoid reactive de-risking during geopolitical noise and instead maintain core equity exposure while selectively adding to secular themes like AI.

Source: bnnbloomberg.ca

DoorDash Emergency Relief Program

DoorDash is launching an emergency relief program to help U.S. gig workers offset surging fuel costs. Investors in gig-economy or consumer-discretionary names should watch how input-cost volatility flows through to margins and whether similar programs become a competitive moat or just a temporary expense.

Source: bnnbloomberg.ca

Financial Disclaimer: This podcast is for EDUCATIONAL and ENTERTAINMENT purposes only. Nothing discussed constitutes financial advice, investment recommendations, or solicitations to buy or sell securities. The "Practice Investment of the Day" uses SIMULATED trades with NO real money — it is a learning exercise to demonstrate analytical techniques. Past performance does not predict future results. Markets involve risk of loss. Always do your own research and consult a licensed financial advisor before making investment decisions. The host and Nerra Network have no fiduciary relationship with listeners.

Sources

bnnbloomberg.ca