The Canadian Technician

Canadian Pipeline Companies Under The Microscope

Getting a pipeline approved these days is a little more difficult than it used to be. In Canada, the debates about Keystone, TransMountain, and Energy East have all been a focal point for national divisiveness. In this article, I have no plan of entering into more debate. I do want to analyze what investors think about pipeline companies right now.

This is the third article in a series about a 1700 Kilometre (over 1000 miles) road trip that I did a week ago. You can follow these links to the first two articles. 

Canadian Transportation Companies Start My Tour

Canadian Forestry Companies Under Review

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Canadian Forestry Companies Under Review

This is the second article from my weekend road trip through the mountains between Alberta and BC. The first article can be found here. Canadian Transportation Companies Start My Highway Tour.

After leaving the Windermere area, we drove past many logging trucks. There are multiple lumber sawmills and pulp mills along the route. We drove past Canfor, Norbord,  and Weyerhauser that you could see from the road. There were also other mills set back from the highway, so I didn't catch the company names. However, the purpose of this article is to get a current state of the different industries, so let me roll through all the Canadian Forestry charts.

Starting with Canfor Corporation (CFP.TO), we can yell "TIMBER-R-R".  This chart has been falling for a while. The SCTR is low, the slope of the 40 WMA is down sloping significantly (just above the red line) and the MACD is very negative and it does not appear ready to start moving higher. There is one small positive and that would be the higher low on the MACD compared to the lower low on price in late June.

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Canadian Transportation Companies Start My Highway Tour

On the weekend, our family went on a long drive through some of the most beautiful places on earth. Starting near the headwaters of the Columbia River system in British Columbia, we wound through Lake Louise, turned north through the Icefields Parkway and headed to Jasper, AB. From there, we went on to Grande Cache and Grande Prairie outside the mountain ranges. We stayed at a farm for 2 days and then rolled through Fox Creek, Whitecourt, Mayerthorpe, Edmonton, Red Deer and ultimately parked in Calgary.

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Canadian Stock Love Stories That Could Be Breaking Up - Do You Own These?

One of the most difficult decisions in investing is selling the gift that keeps on giving. Stocks that have performed well for a number of months or years start to feel bulletproof. I scrolled through the $TSX components and noticed a couple of long-term charts that have generated zero over the last year after being a major outperformer.

The first is Constellation Software (CSU.TO). The stock chart looks like a long, long love story.  Earlier this year, the SCTR broke down below 75 and stayed there. The stock is ripe for a long term investor to make a decision.

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Silver Goes Ballistic

Since Brexit, Silver has rallied significantly and Monday, July 4th is no exception.

While the US markets are on vacation, the Canadians are jumping on the precious metals bandwagon. 

Here is a chart of Silver Wheaton (SLW.TO). It has soared more than 30% since Brexit.

A quick look at the top % movers today shows a clear love for metals and miners.

For those looking to the hot area of the market, the precious metals are on fire. Short-term traders will be loving this move. For long-term investors, it is very difficult to get a new position started after this ballistic move.

The commodities related trades have been on fire. The Commodities Countdown webinar 2016-06-30 looked across a broad spectrum of trading ideas related to commodities. I would encourage you to take a look at some other areas that might not have started moving ballistically. 

Commodities Countdown LIVE! with Greg Schnell - 2016-06-30 17:00 from on Vimeo.

One area of the market that I believe should be constantly monitored over the near-term is the global banking structure. I penned two articles on this after the Brexit results and I continue to think that Brexit might actually be a catalyst for some serious impairment in the banks. You can click on the charts in the following articles to keep updated on the global picture.

When Should You Start Thinking About Protecting Your Portfolio.

When Should You Start Thinking About Protecting Your Portfolio, Part 2

As we head into the second half of the year, the market is really working hard to maintain an upward trend. With 7 quarters of declining earnings, the fundamental picture almost seems irrelevant if the market can not reflect a major lag of this size. However, the technicals continue to define where to be positioned in this volatile sector rotation. Commodities started the year dismally, and have rallied for five months. Can this trend continue? It appears that the commodity rallies are broadening into other types of materials and investors should look a little wider as there appears to be some nice opportunities shaping up. We'll continue to share ideas on this blog and through the webinars. I would encourage you to add webinar viewing to your market information stream. was recently awarded the Top Technical analysis Team for 2016 and we continue to try making the website one of the best spots on the internet for new idea dissemination. 

Good trading,
Greg Schnell, CMT, MFTA Wins Multiple Awards From The CSTA

After a rough couple of days globally, the energy sector looks under attack. The oil producers, service companies, midstream companies and pipelines are all getting crushed in the carnage. 

Some of the charts have had dramatic breakdowns. Some are already moving to two-month support levels and others have already broken down below support. The energy ETF for Canada is still holding an uptrend but just barely.

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Why Was Canada's Exchange The Least Damaged In Friday's Carnage?

Well, if it wasn't a Black Friday, it was sure a grey Friday. Canada's Exchange ($TSX) was the least damaged on a global selloff. Friday's carnage amounted to 1.7% for the $TSX, but the US Markets sold off by 3-4% and some global markets were down by more than 10%. Italy ($MIB) was clocked falling 12.48%. The centre of the storm, England was down 3.15% but the daily candle was down 8% at one point. I find it interesting that the British market fared better than the American indexes.

Canada's $TSX has a large contingent of Gold mining stocks and they gapped up on the open and sold off a little over the course of the day. But this was a marginal ballast to an otherwise messy day globally.

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Canadian Technology Stock Review

Canada has 24 software stocks in the Technology Sector. That makes it a little on the small side compared to some of the other sectors. I will roll through the top 6 in this article to point out a few that could be interesting for investors.

Intertain Group (IT.TO) seems to have broken back above the 200 DMA after a three wave correction. Intertain continues to make higher highs and higher lows after a major December low. The MACD looks ready to turn up above the zero line. The SCTR has moved above 75 and looks strong here.

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Canada's Top Utility Companies Are Accelerating

With the concern about the Brexit vote, this could be a wild week. There are lots of moving parts with the Vix Options Expiration on Wednesday, the quad witching for options on Friday, the Fed, the breakdown in European financials, the breakdown in the Asian charts this morning, and crude oil stalling around the $50 level. With all of that, its not a surprise that the Utilities and Consumer Staples continue to perform well.

Boralex (BLX.TO) leads the Utilities sector right now.

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