The Canadian Technician

From The 3-Month To The 30-Year! Yikes! - Market Roundup

by Greg Schnell

Across my macro bundle of charts, which includes equities, commodities, bonds and currencies, many, many charts are trying to hold trend lines. I recently tweeted on Twitter that I currently have 40 or 50 charts that are positioned for a major breakdown.  Canadian Grizzlies - May 22, 2019, Photo by Greg Schnell In equities, the $SPX sits just above 2800, with less than 57% of the stocks on a buy signal, down from 79% in mid-April. Perhaps the real problem is not the breadth, but the stickiness of the breadth. When 80% of the $SPX are on a buy signal, that is undeniably Read More 

The Canadian Technician

Canada Pauses, Energy Drops - Market Review

by Greg Schnell

Following its high on April 23 (just a few days after Options Expiration), the Canadian market endured a failed breakout. A month later, the market is still below the breakout level. The Canadian index chart looks a little bit stronger, as two pieces of good news - the surge in Westjet on buyout news and a surge in Air Transat on a proposed buyout by Air Canada - helped to bounce a flat market and push it higher last week. As the market consolidates here, the momentum shown on the PPO is near zero. This will mark a pivotal spot if we can't rally back above the Read More 

The Canadian Technician

Lower Highs, Lower Lows

by Greg Schnell

After opening with a sharply down Monday, the market spent the rest of last week trying to make up lost ground. On Friday, the morning started off weak, rallied through the morning and then fell, finishing near the day's lows into the close. Friday's reversing price action is not an optimistic finish for the week, as the market clearly lost some of its enthusiasm. We ultimately closed below the 50-day moving average on the week. Looking at the bigger picture, we can see that breadth is still constrained. Strong breadth can be seen Read More 

The Canadian Technician

Trade Talks Wear On The Market - Market Roundup

by Greg Schnell

After a rough week of market action, hiding was difficult as the trade brush painted everything with the same colour - red. Every sector was in trouble, but the growth sectors were the weakest. While the market weakness may have surprised a few, this is now the third straight week that the defensive sectors drove the leadership. The chart below shows the sector performance over the last three weeks. The right side of the chart hosts the defensive sectors and the left side of the chart has the growth sectors. In the bottom right hand corner, you can see the 15-day date Read More 

The Canadian Technician

Working Through Prior Highs

by Greg Schnell

After the Fed meeting last two weeks, the market pulled back on Thursday with a big rally on Friday, which, despite having significantly less volume, managed to close above the September high. One of the concerns as we test a prior high is breadth. So far, we have had strong breadth readings in both Net New Highs and the Advance/Decline line. Other breadth readings, such as the percentage of stocks above the 200-DMA, are good; additionally, the Bullish Percent Indexes for the $SPX and $NDX are fine. That does not mean the Read More 

The Canadian Technician

The Canadian Market Breakout Fails

by Greg Schnell

Ouch! The Canadian market failed to hold the highs, as $TSX rolled over and dipped back below the breakout level of 16500. While the market has moved higher and higher, there have been fewer and fewer individual stocks making new highs. Three weeks ago, the market made new highs above the October 2018 top. Last week, the market went to higher highs, but only 25 individual stocks did the same. This week, the stock market already has more stocks making new 52-week lows than new 52-week highs. This is typical at a market top. Working through the Read More