In a country where everything’s frozen for so many months a year, it is only befitting for its stock market to be a late bloomer. Will the index's spring be as short as Canada's?
Since we pointed to a possible breakout out of a tight situation, index has risen from 8500 to 9500, or 11% in 6 trading days. Not bad, eh?
Volume has expanded every day of the advance. It, however is still below pre-holiday average.
Take a note of the stocks above 50 DMA on the following chart
It has shot up straight, mostly, if not all, because of commodities and materials.
All breadth measures are nicely positive. Please refer to the post of Jan 1, 2009 where we noted that breadth had been steadily improving on all measures. The lesson to be learned for the chartists among us from TSX is that when market internals consistently gather steam, and the index consistently languishes, one gets ready to buy on a breakout (with a stop, of course) and treats all opinions as opinions and nothing more. For me, the econo-heads can duel it out on financial TV till the end of time, I am open to ideas and discussion, but I never ever argue with my charts.
What now?
Well, as in previous posts of today, I won't fight it, I shall pick a profit taking point and and an exit point and wait. If the situation changes dramatically, I will reevaluate my levels.
I have not had time yet to claculate pivots for TSX, I will try to do that soon.
Posts
0 comments:
Post a Comment