…..for all of Don’s exhaustive review of 49 market charts go HERE – A review of 7 key charts below:
Don’s article in the National Post “Should Canadians go shopping for U.S. stocks?” HERE
The TSX Composite Index gained another 25.78 points (0.21%) last week. The Index closed at an 18 month high on Friday. Intermediate trend is up. Short term momentum indicators have stalled at overbought levels. Support is a 10,990.41. Seasonal influences remain positive. Strength relative to the S&P 500 has been negative during the past seven weeks mainly because of strength in the Canadian Dollar. Intermediate downside risk is to its 50 day moving average currently at 11,762.37.
The Dow Jones Industrial Average rose 70.28 points (0.64%) last week. The Average closed at an 18 month high on Friday. Intermediate trend is up. Seasonal influences remain positive. Short term momentum indicators are intermediate overbought, but continue to trend higher. Strength relative to the S&P 500 resumed a negative trend. Intermediate downside risk is to its 50 day moving average currently at 10,510.78.
The U.S. Dollar added 0.23 last week. However, focus was on the 0.60 drop on Friday on anticipation of a deal to bail out Greece. Resistance has formed at 82.24. Short term momentum indicators are overbought and trending down. MACD has established an intermediate downtrend. Short term downside risk is to support at 79.51. ‘Tis the season for the U.S. Dollar to start moving lower!
David Skarica at www.addictedtoprofits.com notes that much of the strength in the U.S. Dollar since December can be attributed mainly to weakness in the Euro. Currencies for major countries outside of the Euro (Canada, Brazil, Australia, non-Euro based countries in Europe) have trended higher. A bailout of Greece and a corresponding recovery in the Euro could trigger significant weakness in the U.S. Dollar relative to all major world currencies.
The Canadian Dollar added another 0.57 last week. It briefly broke “par” to reach a 22 month high. Short term momentum indicators are overbought, but continue to trend higher. ‘Tis the season for the Canadian Dollar to move higher! April is the strongest month in the year for the Canadian Dollar. Intermediate upside potential is to 103.75.
Crude oil slipped $0.75 last week after reaching an 18 month high. MACD is overbought, but continues to trend higher. ‘Tis the season for crude oil to move higher!
The yield on ten year U.S. Treasuries tested resistance at 4.014 last week, but backed off after a successful auction in mid week. Short term momentum indicators are overbought implying that a break above the 11 month trading range is unlikely to occur soon.
Conversely, prices of long term U.S. Treasuries held above long term support. Short term momentum indicators are trying to bottom.
…..for the rest of Don’s exhaustive review of 49 market charts go HERE
…..Don’s article in the Saturday National Post – Charts, fundamentals show solid prospects for Bombardier