The Canadian Technician

February 2019

The Canadian Technician

Industrial Metals & The Weekly Market Roundup 2019-02-23

by Greg Schnell

This week saw some big surges in Copper, Steel, Rare Earth Metals and Lithium stocks. Although Copper had been unable to make new three-month highs for almost a year, the copper chart surged up to a new seven-month high this week, as seen below. Above the copper panel is the US Dollar, which is generally a pretty good mirror image of the copper price. If copper is rising, then perhaps the US dollar is about to break down? Does this mean the commodities are finally going to run and copper-related stocks can have their day in the sun? The Copper chart is flashing some Read More 

The Canadian Technician

Canadian Market Surges 2019-02-16 Video

by Greg Schnell

The Canadian market has been slowly underperforming the US markets over the last two weeks. Friday had a nice surge in Technology, Financials, Oils, and metal miners as the chart for the TSX 60 broke above the 200-day moving average. Notice the change in the purple area of the chart. You should always be cautious any time the $TSX starts to underperform.  Here is a long term view of the $TSX 60's underperformance. The vertical orange dotted lines reflect relative strength blue trend line breaks shown on the area chart. Technology continues Read More 

The Canadian Technician

Oil Takes A Turn Higher - Weekly Market Roundup 2019-02-16

by Greg Schnell

The markets have been working there way through indecision the last two weeks. Most of my indicators broke above the indecision levels this week including Bullish Percent Indexes, Percentage of Stocks above the 200 Day Moving Average, Net New Highs, Advance/Decline lines, and Summation indexes. That's a solid list pushing out of indecision. For Bullish Percent Indexes and 'percentage of stocks above the 200 day moving average', the two broad composites are in full rally mode. Bullish percentage indexes calculate how many stocks in a group are on a buy signal. The Read More 

The Canadian Technician

Give Your Charts A Shake? Weekend Market Roundup 2019-02-09

by Greg Schnell

To begin, let's start with sentiment. The bullish percent index for the $SPX is sitting at 61.8%, which is where it was during the rebound in 2008. The percentage of stocks above the 200-day moving average is 50%, which is also where it was on the 2008 rebound. What I'm trying to say is that bounces of this magnitude have happened before and rolled over. I'm not trying to be pessimistic, but this is where the going gets tough. Last week, I mentioned that this level would probably be a hurdle. The $SPX broke even this week as we closed right where we opened. More concerning is the Read More 

The Canadian Technician

Who's Going To Win? The Bulls And Bears Show Down Sunday

by Greg Schnell

This week, the markets unilaterally moved in one direction. Some of the underlying indicators are very supportive of additional rally strength to the upside; the $NYHL, for example surged to a level that is usually indicative of a bull market breakout. I am having a deja-vu moment as I write that sentence, though, because I remember saying the same thing in 2016. I think I promised myself that, when the next time came, I would just get on the bull train and avoid the news. Yet here I sit at a station, waiting for the next train respecting the 200-DMA friction above. Courage Read More