TSX Trading Cycle Remains Positive


Author Larry Berman

Posted: 19 July 2012 re-posted from etfcm

The trading cycle for the TSX remains positive, which means traders should be in a buy dips mode. However, the relative cycle confirms that the TSX is still one of the weaker markets in the world. All will know that for the TSX to perform well it needs energy, golds, and base metals to perform well. Over the past few months, these stocks have been decimated.

There is little doubt that the TSX is quite oversold relative to other markets in the world, but in the very short run, it continues to lack a material bullish catalyst. Even the recent strength in WTI crude oil bouncing from $78 to $89, and nat gas from a dip below $2 to coming close to $3, has not managed to excite investors. Seasonals for gold stocks turn up for the next six months, which should help significantly, but there is little clarity in energy where the fundamentals remain soft at best.

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