Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Colin Cieszynski commented about whether DOL-T, GM-N, AAPL-Q, ATS-T, ENB-T, HBM-T, JNJ-N, BNS-T, CJT-T, AC-T, NTR-T, BBD.B-T, CVNA-N, LLY-N, ATH-T, NVDA-Q, TLT-Q, CP-T, C-N, ATD-T, CSU-T, CLS-T, NVDA-Q, MU-Q, TM-N, ARE-T are stocks to buy or sell.
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Pace of lows has slowed a bit, narrowing to what's called a "falling wedge". It it can break out to the upside, that would be really bullish, say a close above $80. If it continues to carry downwards, the $75 round number is coming up, looks like a bit of support around $72.50, and then larger support around Oct/Nov lows in high $60s.
Important thing is we're also still keeping an eye on the transports going into the summer and what do they mean for the economy. Seeing signs of stagflation -- economy slowing in US and Canada, but inflation remains high.
Tends to go in the opposite direction of interest rates. As treasury yields go up it tends to go down, and vice versa. When Fed started to talk about pivoting, had a nice run. Since January, Fed's been walking all that back with its "higher for longer" and reducing rate cuts to one, so TLT's come off a bit.
Encouraging that it's started to pick up in last few weeks. Looking around the world, seems that rates are not going higher anytime soon. Another factor is how aggressively will Fed cut? Cut once or twice and stop, or keep going?
Correction over the past 2 months in price of oil and stocks. Price of oil has bounced back, but not the stocks. Now in a holding pattern, with support around $5.25 and resistance $5.75. He sold as he saw the correction unfold. In his universe, other energy stocks are more highly ranked right now.
The drug sector in RSI rankings has actually weakened, but this one has completely broken away from its sector. That's why it's good to look at RSI not only within groups and groups against each other, but also within the broader universe.
Moving up in a step pattern -- rallies, consolidates at the higher level, rallies, consolidates. A fantastic accumulation pattern, extremely well supported. Now consolidating. As long as it holds above $100 support, it's still being accumulated.
The 5-year chart is very interesting. Massive selloff, huge multi-year base, and now it's broken out. Looking at where it was, looks like it's just getting started longer term.
Looking at comparison charts, it's not unusual to see the S&P 500 outperforming the TSX. It has to do with the sector composition of the markets, rather than a country's economy. In the US, you have a huge number of big-growth companies. Tech, healthcare, consumer discretionary are the biggest sectors. In Canada, the biggest sectors are materials, energy, and financials, with industrial cyclicals being a smaller part of the market.
So when you end up in these big bull runs where people are into growth, there's just more of it in the US and the US tends to outperform. When things go back the other way, or during periods when commodities are rallying, then the TSX tends to do better.
We're seeing this across the globe. While the S&P is reaching new highs Europe, in particular, has really rolled down. Big selloff after recent European Parliament elections, with turmoil ramping up. And China struggled for some time, just starting to bounce back.
Yes, TSX has underperformed, but the US has been this unstoppable train that has run over and demolished everything.
Two ways to make money on bonds. One is the coupon that you collect. The other is your movement in price upward or downward from when you purchased it to whenever it expires, at which point it's redeemed out at par.
So if interest rates go up, and because the coupon is fixed, to get a higher rate from when you buy it to the end, the price has to be lower. If you're paying up, then you're willing to take a bit of a loss on the price in exchange for a higher coupon rate. Part of your return comes from the coupon, and part comes from the increase in price.
If interest rates go down, then investors are willing to take a lower rate because they're paying up.
Correction since March. Now in a holding pattern between $74 and $82, consolidating, digesting previous gains. Would be a concern if it took out $74 support.