Editor Note: Money Talks highly recommends that you make a regular trip to this monday morning site to this Don Vailoux monday report where he analyses an astonishing 40 to 50 Stocks, Commodities and Index charts and, provides a “Bottom Line” and some very interesting comment.
– a few of the 40+ charts and commentary below. Full site HERE
The TSX Composite Index added another 171.65 points last week. Its intermediate trend changed from down to up when the Index broke above resistance at 11,648.55 to reach a 13 month high. The Index remains above its 50 and 200 day moving averages. Support is at 10,745.25. MACD and RSI are short term overbought. Stochastics are short term overbought and showing early signs of rolling over. Strength relative to the S&P 500 Index remains negative, but may be showing early signs of changing. Seasonal influences currently are positive.
The Dow Jones Industrial Average added 41.68 points (0.46%) last week. Intermediate trend remains up. The Average remains above its 50 and 200 day moving averages. Strength relative to the S&P 500 Index is positive. Short term momentum indicators (MACD, RSI and Stochastics) are overbought. Stochastics are significantly overbought and showing early signs of rolling over. Seasonal influences currently are positive.
The Shanghai Composite Index added 120.70 points (3.79%). Intermediate trend remains up. The Index remains above its 50 and 200 day moving averages. Resistance is at 3,478.01. Short term momentum indicators (MACD, RSI and Stochastics) are overbought, but continue to trend higher. Strength relative to the S&P 500 Index remains positive.
The U.S. Dollar added 0.38 last week. Intermediate trend remains down. Once again, the Dollar is testing its 50 day moving average where resistance has consistently appeared during the past eight months. MACD, RSI and Stochastics are recovering from short term oversold levels. A move above its 50 day moving average currently at 76.00 likely will trigger a significant short covering rally. Next resistance is at 76.82. Should be a very interesting week!
The Canadian Dollar fell 1.61 last week. Intermediate trend remains up. Short term momentum indicators are trending lower from overbought levels. The Canuck Buck fell below its 50 day moving average last week. Support is indicated at 92.16
Silver resumed its intermediate trend last week on a break above resistance at $18.08. Strength relative to gold remains negative.
The Bottom Line
Equity markets continue to trend higher. Stick with the trend (particularly in sectors that benefit from favourable seasonal influences).
Ed Note: much much more at Don Vialoux’s Monday Site HERE.
Don Vialoux has 37 years of experience in the Investment Industry. He is a past president of the Canadian Society of Technical Analysts (www.csta.org) and a former technical analyst at RBC Investments. Now he is the author of a daily letter on equity markets available free on the internet. The reports can be accessed daily right here at www.dvtechtalk.com.
Impossible! That’s what institutional investors say about “Timing the Market”. Mr. Vialoux will explain that, indeed, it can be done with the appropriate analysis. He also will explain why timing the market will be important during the next decade. Buy and Hold strategies are not working anymore; Investors are looking for alternatives. Mr. Vialoux will demonstrate four techniques that can be used to time intermediate stock market swings lasting 5-15 months. The preferred investment vehicles for investing in intermediate stock market swings are Exchange Traded Funds.
Comments in Tech Talk reports are the opinion of Mr. Vialoux. They are based on technical, fundamental and/or seasonal data that is believed to be accurate. The comments are free. Mr. Vialoux receives no remuneration from any source for these services. Comments should not be considered as advice to buy or to sell a security. Investors, who respond to comments in Tech Talk, are financially responsible for their own transactions.