Sectors and equity markets, that benefit from seasonal influences during the February to May period, have recorded exceptional returns since early February including investments in platinum, silver, mines & metals, energy, oil services, consumer discretionary, industrials and materials. Opportunities to enter or to add to these sectors and markets have passed. On the other hand, they continue to have time to move higher during their current period of seasonal strength. Preferred strategy is to hold for now and to watch for technical signs for an exit.
Crude oil gained $4.87 U.S. per barrel (6.09%) last week. On Friday Crude broke above resistance at $83.87 to reach an 18 month high. Short term momentum indicators are overbought, but have resumed an uptrend.
The TSX Energy Index gained 7.02% last week. Nice breakout on Thursday above resistance at 292.79! Nice bounce from its 200 day moving average! Next resistance is at 308.99. ‘Tis the season for the sector to move higher!
The TSX Composite Index gained 193.69 points (1.62%) last week. The Index closed at an 18 month high on Friday. Intermediate trend remains up. Short term momentum indicators are overbought, but not showing signs of rolling over yet. Seasonal influences are positive. Strength relative to the S&P 500 Index has been mixed recently, but showed signs last week of turning positive.
The U.S. Dollar Index fell 0.89 last week. Short term momentum indicators rolled over from overbought levels. MACD also established an intermediate downtrend. A test of its recent low at 79.51 is likely.
The Canadian Dollar gained 1.77 cents U.S. last week and tested its recent high at 99.37. Short term momentum indicators are moving higher. Intermediate upside potential is to 103.75.
…..for the rest of Don’s exhaustive review of 48 market charts go HERE
…..Don’s article in the Saturday National Post – Charts, fundamentals show solid prospects for Bombardier