The Canadian Technician

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is also the author of Stock Charts for Dummies (Wiley, 2018).

Latest Posts

The Canadian Technician

Canada Pauses, Energy Drops - Market Review

by Greg Schnell

Following its high on April 23 (just a few days after Options Expiration), the Canadian market endured a failed breakout. A month later, the market is still below the breakout level. The Canadian index chart looks a little bit stronger, as two pieces of good news - the surge in Westjet on buyout news and a surge in Air Transat on a proposed buyout by Air Canada - helped to bounce a flat market and push it higher last week. As the market consolidates here, the momentum shown on the PPO is near zero. This will mark a pivotal spot if we can't rally back above the Read More 

The Canadian Technician

Lower Highs, Lower Lows

by Greg Schnell

After opening with a sharply down Monday, the market spent the rest of last week trying to make up lost ground. On Friday, the morning started off weak, rallied through the morning and then fell, finishing near the day's lows into the close. Friday's reversing price action is not an optimistic finish for the week, as the market clearly lost some of its enthusiasm. We ultimately closed below the 50-day moving average on the week. Looking at the bigger picture, we can see that breadth is still constrained. Strong breadth can be seen Read More 

The Canadian Technician

Trade Talks Wear On The Market - Market Roundup

by Greg Schnell

After a rough week of market action, hiding was difficult as the trade brush painted everything with the same colour - red. Every sector was in trouble, but the growth sectors were the weakest. While the market weakness may have surprised a few, this is now the third straight week that the defensive sectors drove the leadership. The chart below shows the sector performance over the last three weeks. The right side of the chart hosts the defensive sectors and the left side of the chart has the growth sectors. In the bottom right hand corner, you can see the 15-day date Read More 

The Canadian Technician

Working Through Prior Highs

by Greg Schnell

After the Fed meeting last two weeks, the market pulled back on Thursday with a big rally on Friday, which, despite having significantly less volume, managed to close above the September high. One of the concerns as we test a prior high is breadth. So far, we have had strong breadth readings in both Net New Highs and the Advance/Decline line. Other breadth readings, such as the percentage of stocks above the 200-DMA, are good; additionally, the Bullish Percent Indexes for the $SPX and $NDX are fine. That does not mean the Read More 

The Canadian Technician

The Canadian Market Breakout Fails

by Greg Schnell

Ouch! The Canadian market failed to hold the highs, as $TSX rolled over and dipped back below the breakout level of 16500. While the market has moved higher and higher, there have been fewer and fewer individual stocks making new highs. Three weeks ago, the market made new highs above the October 2018 top. Last week, the market went to higher highs, but only 25 individual stocks did the same. This week, the stock market already has more stocks making new 52-week lows than new 52-week highs. This is typical at a market top. Working through the Read More 

The Canadian Technician

The Weekly Outlook

by Greg Schnell

After an exciting week where the market made new closing highs, Monday morning saw a push to new intraday all-time highs on the $COMPQ and the $SPX.  A few things about last week got my attention. Firstly, there was a rotation into some of the defensives. Even with the big tech earnings last week, Technology slipped a bit. Facebook and Disney are in Communication Services and that sector was hot. I think the broad strength in defensives is relatively new after a big selloff. While Communications and Healthcare were the top performers, let's take a look at what sectors Read More 

The Canadian Technician

Weekly Outlook - Financials Surge, Commodities Don't

by Greg Schnell

As we kick off the week, we must begin by noting that railroads are the hottest wheels around. They were rolling! CSX, CNI, UNP, NSC and KSU all hit new highs this month, while CP is just moments away. The fact that the industry group is just starting to surge above resistance suggests there are more gains coming into the space. So, with good things rolling in for the transports, it looks like the Industrials are also going onto higher highs. Financials broke a year-long downtrend this week, so it is an important time to check in on the industries. Read More 

The Canadian Technician

Banks And Brokers Weekly Roundup

by Greg Schnell

JPM kicked into high gear Friday with some great numbers. It continues to be the best chart in the US bank space. Goldman Sachs and Morgan Stanley also had nice moves. We'll see if they hold up as they release their earnings today. Morgan Stanley is the same way. However, Wells Fargo saw a lack of love. The important thing to watch this week is the follow-through. Can the KBE and KRE charts make higher highs and close the week at them? This will be a major inflection point on those charts should they break out here. Read More 

The Canadian Technician

Weekly Market Roundup: Big Changes in the Big Picture Charts

by Greg Schnell

This week, I had the pleasure of attending the annual CMT Association symposium in NYC, where I was reminded of how many superb people there are in the industry. With that all wrapped up, this article will be a combination of a meeting review and market analysis. This conference is one where everyone can talk about the crude oil chart without anyone needing to see one. They all know it; the shape, the peaks and valleys, the retracement levels, the main moving averages and the long-term perspective. The $USD, while hotly debated as regarding its future direction, is the same. As presenters Read More 

The Canadian Technician

Lower Lows, Lower Highs 2019-03-30 Weekend Market Review

by Greg Schnell

Most of the markets around the world were up marginally from the February close. Lots of the price bars were the equivalent of a candlestick doji, which is a topic you can learn more about in this Chartschool article. The short version is that dojis are defined as a balance between buyers and sellers. Worldwide, that seems to be the story at the end of the month. Here is the New York Composite ($NYA). The price action ended the month at almost the same point as where it started the month.  While it did make a higher high and a higher low, as seen on the Read More 

The Canadian Technician

Canadian Market Review 2019-03-29

by Greg Schnell

This week marked the sixth consecutive one in which the Canadian market traded sideways. Personally, I find it hard to get excited about a market going sideways. More concerning is the fact that the main areas of the Canadian market are not showing improvement. On the chart below, you can see that the $TSX has traded between 16000 and 16200 for six weeks. Only two days closed above 16000; both dropped back into the channel by the next day. At the top of the chart is a relative strength chart, wherein we can compare the $TSX trading relative to the USA Read More 

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