The Canadian Technician

February 2016

The Canadian Technician

If You Trade Retests Of Lows, Check Out $NATGAS

by Greg Schnell

Natural Gas ($NATGAS) has been oil's partner trending down as they continue to get rejected at higher levels. Today Natural Gas ($NATGAS) is testing the lows it made in December. If you like trading tests of prior lows, today is your day to look at the retest. This will be important for $NATGAS as it will be the lowest monthly close in 16 years. This is only for the quickest of traders. I am not so sure that the lows in Natural Gas are in, but this is an important retest. We might also get a spike down like we did in December taking out the lows in a big way, only to reverse Read More 

The Canadian Technician

Markets Could Move Meaningfully Lower From Here, Gold Looks Higher!

by Greg Schnell

Markets worldwide are testing important levels. Today was a very important step back. It really marks an important place on global charts.  The markets could also move meaningfully higher from here as well, but the SCTR rankings currently do not show any change in trending sectors so it would appear to me that the bears are in control. Let me show two charts. The $TSX has already broken below support, whereas the $SPX continues to oscillate around support. I'll work through what I mean. Starting with the $TSX, I published a PnF chart showing how important the 13000 level is last Read More 

The Canadian Technician

The Mining Sector Starts To Make Higher Highs ($SPTMN)

by Greg Schnell

It has been a long time since we could say anything positive about the mining sector. After a 5 year beat down which saw a meaningful top in 2011, the sector has bounced off the January lows. Let's not get too excited, but a potential trend change nevertheless.   Walking through the chart, the Relative Strength in purple broke out to 3-month highs today. That is important. If the sector can start to outperform, this will attract inflows. Looking at the price panel for the index, we still have room for a 20% move just to get to the 200 DMA. It is unbelievable how far down these Read More 

The Canadian Technician

The Canadian Index Is At An Important PnF Resistance Level

by Greg Schnell

While we often get caught up in the day-to-day swings of the market, sometimes a broader view is important. The Canadian Stock Exchange Index ($TSX) tested the bear market resistance line on the PnF Chart this week. As one of the earliest charting methodologies, this is a well-respected charting system. Currently, it has broken out to a buy signal by creating a higher column of x's. It also broke above the columns that stopped at 12800. Click on this link to see the current version. As we approach 13000, this is an important test point. If the market can push through here, this Read More 

The Canadian Technician

Basic Material ETF's And Stocks Start To Rally

by Greg Schnell

While the XLB in the US is dominated by the likes of Dow and Dupont, the Canadian materials index is a lot more focused on raw materials. However, it is still heavily weighted towards gold. Here is the iShares Capped Materials Index ETF (XMA.TO) in Canada. Recently, there have been some nice breakouts in the basic materials stocks. This is the strongest SCTR ranking for Teck in 4 years. I saw a steel consumption chart for China on my twitter feed, and it looks similar to this Teck chart. The 3-month price breakout looks good, lots of volume coming Read More 

The Canadian Technician

The Utility Index Gets Slammed - Find Out Why At 5 EST Today

by Greg Schnell

I'll be hosting a Canadian Technician Webinar at 5 PM EST on Tuesday, February 9th. Click on the link to register. The Canadian Technician Live 20160209. The Utility Sector has been a safe haven in this storm until today. The Canadian Utility Sector ($SPTUT) got slammed so is this the end of the Utility rally? I'll cover off a lot more than the utility sector today. There are lots of fast moving pieces. Below is a chart of the Canadian Financial Sector. $SPTFS. There are numerous problems with this chart. One specific piece to Read More 

The Canadian Technician

I'll Be On Trading Places With Tom Bowley Today at 12 Noon EST

by Greg Schnell

Tom Bowley and I are teaming up to do the Trading Places Webinar at 12 Noon EST. Click here to register. Trading Places 20160205. There are some trend changes to talk about with some new industry rotation showing up on the charts. As an example, how about a break above a trend line going back to 2012? See you there! Good trading, Greg Schnell, CMT   Read More 

The Canadian Technician

Are The Banks WorldWide Suffering Another Meltdown?

by Greg Schnell

Globally, Bank charts are messed up US Banks Canadian Banks Japanese Banks Chinese Banks European Banks Lately, some of the banks have been behaving very poorly. This can actually be widened out to include some of the insurers as well. In a webinar on Tuesday, Martin Pring on Tuesday, February 2, 2016 (Market RoundUp Live With Martin Pring and Greg Schnell), Martin and I presented two different views from the financial sphere that indicated stress within the financial sector. I wanted to take the time and add some of these charts to the blog article commentary as I feel Read More 

The Canadian Technician

Hunting For Winners In The Canadian Utility Sector

by Greg Schnell

Last week the Utilities Sector in Canada stormed to new 9-month highs. Today I went through to find some of the top performing Utility plays in Canada. Here is an ETF for the sector. XUT.TO soared last week on good volume and pushed the SCTR above 90 on Friday. In no particular order, I'll list a few of the Utilities here. Algonquin Power (AQN.TO) has been hitting new highs for a while now. But last week registered the second largest volume candle in 4 years. Northland Power (NPI.TO) has been hitting new highs since October. Read More