Martin Pring and Greg Schnell are getting together in Pring Studios in Florida to do a live debate webinar. The setup is compelling as many of the major charts in the world are lining up for a major shift. I've nicknamed the webinar 'Back From The Precipice' as the charts appear to be setting up for a major trend change.
Looking through the Canadian insurance companies, I was not surprised but I think it is worth noting how weak they all are. When an entire industry group makes up a very weak sector, it is good to avoid. But there is always a time to get back in. This article shows a suggested methodology for doing that. The SCTR information can also be used to help us see turnaround situations. We can set an SCTR level as a target for them to break out. When they stop being the weakest stocks as a group, we can start to look at them again. This style of investing with the SCTR is harder, but you are typically buying closer to the lows.
Here is Great-West Lifeco (GWO.TO). The SCTR ranking is now below 10. This is the lowest level in 5 years. At this point, there is no reason to invest in the industry, but we can set an alert when the SCTR starts to improve above 25. We can do that for each stock. The run off the SCTR lows in 2014 was a pretty good rally for a beaten down stock.
The Canadian Stock Exchange ($TSX) had not made new 52-week highs for a couple of years. Finally, in August we started to hit new 52-week highs. Our last 52-week high was in September 2014.
Canopy Growth Corp (CGC.TO) just moved from the Venture to the $TSX exchange. Well, someone noticed. The stock absolutely soared to new highs. This article could be filled with puns about new highs, stimulus, kicking off a weed-end, etc. etc but I shall resist!
With political developments favoring the stock and a method of investing in the cannabis trade on the main exchange, the stock couldn't be contained in old price ranges.
The age old question for energy investors rocks back to the top of the stroke every day. Is this the time to get into or out of Energy stocks? Is the industry ready to speed up?
The market continues to churn higher, continuously pushing away from breakout levels above September 2015 around 14000. The $TSX opened to new 2016 highs this morning even as oil has pulled back over the last two months.
This is the fifth article in a series about a 1700 Kilometre (over 1000 miles) road trip that I did two weeks ago. You can follow these links to the first four articles.
On my road trip through the mountains and into the grain growing region, a massive transition from mining and forestry into grain and livestock takes place. We also travelled through Jasper National Park. Caribou are not found as far south as Calgary, but this bull Caribou was just east of the Jasper townsite.
This is the fourth article in a series about a 1700 Kilometre (over 1000 miles) road trip that I did a week ago. You can follow these links to the first three articles.
Continuing with one of Canada's largest pipeline companies, TransCanada Pipelines (TRP.TO, TRP) has been rocketing higher. Here is a link to their latest investor presentation. They are primarily a Natural Gas transportation company.
The SCTR is holding nicely above 80 and has been really strong since the beginning of the years. We can see the price has soared to new highs and is currently 25% above the 40 WMA. I have shown an area on the left side marked with a red arrow that made a top on TRP.TO. Notice how the volume peaks matched the top and bottom of the stock range. What makes that worrisome is the third highest volume candle on the chart was last week. Perhaps it marks another top?
Getting a pipeline approved these days is a little more difficult than it used to be. In Canada, the debates about Keystone, TransMountain, and Energy East have all been a focal point for national divisiveness. In this article, I have no plan of entering into more debate. I do want to analyze what investors think about pipeline companies right now.
This is the third article in a series about a 1700 Kilometre (over 1000 miles) road trip that I did a week ago. You can follow these links to the first two articles.
This is the second article from my weekend road trip through the mountains between Alberta and BC. The first article can be found here. Canadian Transportation Companies Start My Highway Tour.
After leaving the Windermere area, we drove past many logging trucks. There are multiple lumber sawmills and pulp mills along the route. We drove past Canfor, Norbord, and Weyerhauser that you could see from the road. There were also other mills set back from the highway, so I didn't catch the company names. However, the purpose of this article is to get a current state of the different industries, so let me roll through all the Canadian Forestry charts.
Starting with Canfor Corporation (CFP.TO), we can yell "TIMBER-R-R". This chart has been falling for a while. The SCTR is low, the slope of the 40 WMA is down sloping significantly (just above the red line) and the MACD is very negative and it does not appear ready to start moving higher. There is one small positive and that would be the higher low on the MACD compared to the lower low on price in late June.