StockCharts.com - Blogs

Very interesting quarter, let's do a review.

While watching the US markets powering higher to the tune of 12%, the $TSX is up 1%. If you were in the strong stocks the pullbacks have been jarring like 20% in a week in WPT.TO. If you were in the banks you have found a bit of a safe harbour.

Let's look at the $TSX over multiple time frames.

FIrst of all...here is the TSX - 7 year picture.

Here are two lumber/paper stock dashboards. Pretty mixed bag.

The Canadian banks are very interesting here. 

Well, here is the dashboard.

If you have been reading the blog for a while, you know that I find comparing sectors and stocks to the SPX a valuable tool.

Well, here are the Canadian sectors compared to the $SPX. 

With all our cycle work over the last week, I took a look to find buying cycle lows.

The more you speak to the veterans in the industry, the more they talk about cycles and intervals. Recently, Tom McClellan of McClellan Oscillator was in Calgary to speak. He spoke of cycles and time shifted intervals.  Cycles indicate a repetitive low - low pattern. Time interval theory suggests that time interval (eg 15 months) is important, but it may be a meaningful high or low. George Lindsay use time intervals that ended up spotting an exact date where multiple time intervals would converge and create a strong decision point on the charts. I spoke with Martin Pring this week and his use of cycles is very detailed. Ron Miesels is a Canadian chartist who uses phases and cycles. Lets go check some intervals out on an $SPX chart.

Here is the $SPX.

As a follow up to the article on utilities, here is the relative strength in purple, starting to move higher.

Looks like the love of stability is starting to return.

Good Trading,

Greg Schnell, CMT

One of the benefits of being a stockcharts member is the multiple ways to display data and save it for future looks.

On the weekend I was scanning through my various chartlists.  This chart popped up in my "Canadian Technician" chart list. So using the search field on the stockcharts website, I put in CDNX. It shows everything on CDNX that is on a stockcharts blog, chartschool etc. Magically, the first time I posted the CDNX chart was on September 22. 2011.

I got a comment back on the Long Term $TSX chart from earlier in the week. One of our fellow CSTA members from Ontario, Bob Hunziker, sent in this great chart. Why is it great? When we spend too much time on short term charts we fail to see the big picture. Stepping back can be really helpful.  Martin Pring told me that the longest trend is always dominant. That makes sense but I usually use 3 year weekly or daily in my daily reviews. So a regular trip to the 10 year view helps.

These charts rolling over here are spectacularly troubling! At the bottom of the list is a 13 year chart of the TSX. It is never good when the MACD resides below zero. So, maybe it's a one day deal, but be aware. In 2008 the SPX spent the entire year under the 200 dma. For Canada, having copper, energy stocks, material stocks and the TSX below the 200 dma is a strong caution. I am transcribing what I see in the charts. Maybe you can see a more optimistic upside.

XEG and TSX 

Both of these charts made 2011 highs and lows the same week. It would appear that the support in June at the black support /resistance line on the XEG  chart also caused a bounce on the $TSX. I have denoted this point with green arrows. The two vertical lines are slightly offset from the actual high and low week so viewers can see the limits of the move.

Continue reading "XEG correlated to the TSX" »