If you have been reading the blog for a while, you know that I find comparing sectors and stocks to the SPX a valuable tool.
Well, here are the Canadian sectors compared to the $SPX.
As you can see, all of these sectors continue to underperform the $SPX. they are all tilted down. If they outperformed the $SPX, you would see them rising. In order, Technology, Energy, Materials, miners, global gold miners, industrials. Tough crowd. Nothing is outperforming the SPX. Lets look at the rest of the sectors.
The finance sector hasn't even outperformed, You can see everything is tilted down or underperforming the $SPX. In order, Finance, Consumer staples, Consumer discretionary, Telecom, real estate, and utilities. they all are underperforming the SPX since October 2011.
So I don't have an explanation for it, but we are dramatically underperforming in every sector. It is no wonder, when you look at the $TSX that we are not anywhere near the same slope up as the $SPX which has gained huge from the October 4th low. You'll notice the $TSX weekly below just can't break away from the 40 week MA whereas the SPX is way above.
Notice the difference in the $TSX compared to the Euphoria of the $SPX.
We really need the money coming out of bonds to fuel a rally in commodities to get some uplift on the Canadian exchange.
Good trading,
Greg Schnell, CMT
