The Canadian Technician

Canadian Sector Strength

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Here are the Canadian Sector charts.

Cdn Dashboard 1


Here is the second group.

Cdn Dashboards 2

Very interesting checking out the charts together.

What do I see here?

I see Rim heavily influencing the Tech chart for Canada at the top. Might be a trade, but its not for holding as the downtrend on the chart suggests.

Energy seems to be basing here, but the pillaging of Natural gas pricing should put a limit on banks financing the energy sector. Probably the oil plays are ok, but this gas pricing problem could create a few wounded companies.

The Bullish wedge forming on the materials. A downward wedge usually breaks to the upside. An upward wedge usually breaks to the downside.

The metals and mining is trading in the centre of the range for the last two years. Isn't it odd how we watched the big bull run from the 2009 lows and we have lost 1/2 of the move from late 2010. The 1200 level was a ceiling before the late run up in the fall of 2010. That level has provided resistance here as well.Pretty amazing considering what sector we are talking about.

I see gold stocks trading in a broad range for the last 18 months and we are near the lows of the range. That is hard to profit from when gold has had such a delirous run at times to see the gold stocks not enjoying the move.

I find the Canadian Industrials chart very bullish.

The FInancial services index has put in a big bounce here. It looks to me like it needs to pull back to the 50 day, find support there and roar forward. It just looks like a bear market rally to me.

The consumer staples and the consumer discretionary are trading sideways. LLL.TO has surprised me. Their chart structure was very weak, but Christmas obviously worked out better. Nice bullet higher there.

The Telecoms and REITs are still in an upward trajectory.

Interestingly, our Utility sector is lower than where it started 2010. After all the Talking Heads showing their love for the sector, it has been a flat trade at best. Obviously that is better than the declines in the commodities, But it is not rising to new highs.

Lastly, I talked about a gold trade late last week. I said that you could buy the goldminers using HUG.TO.  That is wrong. That is a Comex ETF not the gold miners. Sorry about that. Thanks to Kent for pointing that out.

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Good Trading,

 

Greg Schnell, CMT

 

 

 

 

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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