The Bottom Line
Technicals, fundamentals and seasonal influences point to another volatile week in equity markets around the world. Preferred strategy is to continue to hold sectors that benefit from favourable seasonal influences (gold, gold equities, biotech, fertilizers) and to continue to hold a “healthy” position in cash equivalents.
The TSX Composite Index improved 195.09 points (1.47%) last week. Intermediate trend is down. The Index moved nicely above its 50 and 200 day moving averages last week. Short term resistance at 13,474.89 was broken on Friday. Intermediate resistance exists at 13,901.56 and 14,329.49. Strength relative to the S&P 500 Index remains negative. Short term momentum indicators turned higher last week and have returned to overbought levels.
The Canadian Dollar gained 0.59 cents U.S. last week. Its intermediate uptrend was confirmed on a break above resistance at 105.49 cents U.S. Short term momentum indicators are overbought, but have yet to show signs of peaking.
Silver gained $1.03 per ounce (2.64%) last week. It broke resistance at $39.35. Short term momentum indicators are overbought, but have yet to show signs of peaking. Strength relative to gold has turned positive, an encouraging sign for both.
Crude Oil gained $2.49 per barrel (2.56%) last week. Short term momentum indicators are overbought, but continue to trend higher. Crude moved above its 50 day moving average last week.
….read and view more of Don’s last Report with 40+ Charts analysed and links to his EquityClock seasonal charts HERE