The Canadian Technician

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is also the author of Stock Charts for Dummies (Wiley, 2018).

Latest Posts

The Canadian Technician

Canada's $TSX Sits On The Edge

by Greg Schnell

The $TSX is negative for the year. The monthly chart of the $TSX made a lower high and a lower low in August. 1/3 of the way through September, we have lower highs and lower lows than August. A series of lower highs and lower lows is the definition of a downtrend. This can be seen in the zoom panel. We have been flirting with this long uptrend line shown in blue. This month it looks like we are breaking below the line again. The line shows the Canadian stock market unable to accelerate above the line like it used to do.  In the zoom box, the PPO looks to be giving a sell Read More 

The Canadian Technician

Marijuana Names Soar 2018-08-27 Video

by Greg Schnell

Marijuana names absolutely soared the last two weeks as Canadian legalization approaches. With the rumour of partnership deals in beverages and snacks, the euphoria couldn't be much higher. That might be the problem.  Who doesn't own the stocks that wanted to? The ETF is up 50% in 2 weeks! Individual stocks are approaching 50% to 140% gains in the same period. Here is the Medical Marijuana related ETF. With the volume doubling between Thursday and Friday and now Friday to Monday, this looks pretty significant. The volume today was 5 times average volume!  Read More 

The Canadian Technician

Canadian Markets Follow Through On Weak Breadth Conditions

by Greg Schnell

 Don't forget Chartcon 2018. You can still get access to watch all the recordings of the presenters and the question period. I would suggest taking the time to watch the ChartCon 2018 presentations. The diversity of ideas filled the spectrum of investing styles. The Canadian market has been making lower highs for 5 weeks. Breadth has been decelerating as discussed in the July 31 Canadian Technician video. Here is the link to the 2018-07-31 recording of The Canadian Technician Video. Read More 

The Canadian Technician

Canada's Breadth Starts To Slip 2018-07-31 Video

by Greg Schnell

Canada continues to move higher on lower breadth. This is the Bullish Percent Index in the top panel. The chart shows the percentage of stocks that are on a buy signal. Notice the drop each time the market rallies. Each time we move below the moving average the market retracts.  The number of stocks making new 52 week highs is currently less than the number of stocks making new 52 week lows. At the recent high, we had fewer stocks making new highs compared to January highs. The chart below is the same as the chart above, but you can see how a Read More 

The Canadian Technician

Canada Makes A New High 2018-07-17 Video

by Greg Schnell

The Canadian stock market continues to inch its way to new highs. Amazingly, the oil stocks are holding up while oil falls. The Natural Gas stocks are holding up while Natural Gas falls. The gold stocks are holding up while Gold falls. The miners are holding up while industrial metals fall. So there is a lot of optimism trying to hold the stocks up, while waiting for the commodities to rally. Banks have ticked modestly higher. Defensive sectors have definitely caught a bid. In the very bullish list is the Canadian Technology sector. There are some great looking charts in there. Read More 

The Canadian Technician

Can The $TSX Kick It Up Rodeo Style? 2018-07-03 Video

by Greg Schnell

The first half of the year, saw the $TSX do nothing. After 120 trading days, we ended up 0.3% above the year-end level. The $SPX wasn't much better but it quadrupled the $TSX with a 1.3% gain. That sounds like a lot of trading days to end up within a day of being flat. So with that as a backdrop, we need a little rodeo style to kick this market higher. Unfortunately, the current level of momentum is rolling over after being below zero. One of the key traits I have noticed in indexes is that a large percentage of the time when an index dips into negative territory Read More 

The Canadian Technician

Trading On Both Sides Of A Barbed Wire Fence

by Greg Schnell

With two days left in the quarter, we have some important data points coming out. Friday June 29th will produce an End of Day, End of Week, End of Month, End of Quarter data point. My charts are set up with the tension of a guitar string. Whether it sets off the next Queen - Another One Bites The Dust or the Queen - Don't Stop Me Now is the question.  So here are ten charts that make me very concerned. $BPNYA and $NYA200R.  The first is the bullish percent index for the broader NYSE Index and the second in black histograms is the percentage of stocks above Read More 

The Canadian Technician

Are Utilities Next? 2018-06-19 Video

by Greg Schnell

The $TSX was breaking out to new highs this morning on the back of the marijuana legislation passing both the house and the senate.  While that looks pretty good, it is an important time to watch the market for other clues. I presented a global chart review at the CSTA Annual General Meeting last week that showed a number of weak charts. Since then they have all broken meaningfully. Shanghai to new two year lows is an example. As China is one of the biggest producers of steel and cement, as well as one of the biggest buyers of commodities, this chart induces a Read More 

The Canadian Technician

Canadian Banks - Trouble In Paradise?

by Greg Schnell

The Canadian Banks are pretty much jammed into every portfolio or ETF that tracks any part of the $TSX broad index. A person invested in Canada through an index tracking ETF would find it impossible to own Canadian stuff without the big banks. So that leads me to today's article. The Canadian banks are set up for a big move higher or a fail at major resistance. Let's take a look and then review. I'll do them alphabetically by ticker symbol, but notice where the SCTR is on each one. BMO. (BMO.TO) We can see that BMO fell out of the 75 range in April of 2017 and has not Read More 

The Canadian Technician

Technology Leads In Canada 2018-06-05 Video

by Greg Schnell

The Canadian market has stalled recently at an important resistance level.  A breakout on the momentum line would be a big help to see Canada start to outperform. Zooming in on a weekly chart, the Canadian market has traded inside a 500 point range for a month. Getting to a daily chart, we are almost back at unchanged for the year. In the last two weeks the USA went from near unchanged to up 3%. It will be important to watch the US market as it approaches the February and March highs. I mentioned on the video that crude is struggling Read More 

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