The Canadian Technician

Canadian Airlines Start To Soar With The US Airlines

Air Canada (AC.TO) has been flying (not good to say an airline is 'on fire'), but the other airlines are starting to get the memo. Looking through all of the Canadian airlines, the group looks ready to push higher. Not just one winner, but five winners. The US Airlines have been breaking out too.

Let's start with Air Canada's leadership (AC.TO).

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Canadian Market In Correction

After months of watching the oil stocks underperform crude, the broader Canadian $TSX was able to withstand some of the selling. Now the breadth of the market has shrunk considerably. All market breadth measures are weak.

The chart below shows the Bullish Percent Index ($BPTSE). This measures the number of stocks on a buy signal. The blue vertical lines on the chart show when the $BPTSE breaks below the 40 Week Moving Average shown in green from a really high level. The correction is usually considerable. This correction has just started.

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Mid Year Update On Canadian Banks

The Canadian banks have underperformed the $SPX so far this year. They have drifted lower since March but they have some interesting traits on the indicators pointing to an interesting time now. Two have yields of 3.65%, two have 3.83% and CIBC has 4.65%.

First of all, BMO. The yield is 3.8% which is very big. I'll come back to the SCTR but the downslope in relative trend was broken this week. While that is hardly a starting point, it coincides with the price breaking back above the 200 DMA. The Friday volume was great and the MACD crossed above the signal line. Looking at the SCTR, I do like when a large cap stock in Canada like a major bank dips below 25 and then starts to climb back up through 30. 

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The Canadian Technician Video Recording 2017-05-30

Here is this week's link to The Canadian Technician Video Recording for Tuesday, May 30th.

The Canadian Technician, Greg Schnell 2017-05-30 from on Vimeo.

Also, here is the chart I spoke of specifically in the video. You can click on it to open up the chart on your workbench. Then click on annotate to alter some small detail before saving. Then click save and store the chart in your own chartlist.

Good trading,
Greg Schnell, CMT, MFTA.


Canadian Utilities Close At New Highs - Higher Prices For Consumers Coming?

Rolling through the various sector charts shows Canada all mixed up. Technology has been holding up but the anchor tenants of the Canadian market have not. A one month view shows the Material Energy and Financials spaces as mediocre, and the other areas driving the bus. While Healthcare is bouncing off huge multi year lows, it looks impressive, but not really. Shopify and a few other names have led the Technology space higher, but the Utilities seem to be holding up. 

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