The Canadian Technician

$TSX Sector review


The $TSX had a great quarter. After finally breaking above resistance in October, the market has lifted most boats. Unfortunately for precious metal investors, they took another mixed martial arts beating. Most have tapped out after having the shiny metal move against them.

Here is the sector performance for the last 3 months.

Screen Shot 2013-12-27 at 9.17.29 AM

It feels so good till we compare it with the large cap $SPX. 

Screen Shot 2013-12-27 at 9.18.56 AM

Only two Canadian sectors outperformed the $SPX. The main problem with this is that the $NASDAQ would outperform as well. By even more. Below is a 200 day comparison to the $COMPQ.

Screen Shot 2013-12-27 at 9.21.01 AM

That is a wow. Comparing the Canadian market to the broad $COMPQ over 3 months generates the following chart.

Screen Shot 2013-12-27 at 9.24.09 AM

When we add the $USD outperforming the Canadian dollar, We can add another 3%. You will notice the $USD button is greyed out at the top of the chart, so this shows everything relative to the $USD. The Canadian Loonie is shown in orange with a 3.14% underperformance over the last 60 days.

Screen Shot 2013-12-27 at 9.26.57 AM

We have been talking about the US outperformance even when the Canadian market was trapped under resistance. The bottom line was the US market was even more euphoric in the fourth quarter than our market after we rose above resistance. 

Good trading,

Greg Schnell, CMT.


Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at 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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