Get started

S&P/TSX Composite

Weekly Chart Showing Strength, $ECAEncana Corp has recently broken a resistance line and a year long downtrend line this year. After being up the past few months, it is continuing to look bullish. It has just had a two month consolidation period and is ready for the next leg up. The price has moved above the 20MA (which it respected during the downtrend) and the 50MA. Additionally, the Directional Movement Index is also showing a possible strong uptrend with it nearing a pass above 25, and the Relative Strength Index is about to move above 70. Next resistance is around 13.30 to 13.50 which is 10% above the current price.
ELong
by juniortrader
What's next for the TSX Composite Index? According to investing.com, the average of 27 analysts polled in April shows year end target forecast of 13550. Weekly RSI is approaching 60, with the upper weekly bollinger band starting to level off. Technically the chart appears to indicate the price trend is now towards the upper side of the trading range and offering a less attractive 'risk-reward' ratio after achieving over 18% return from lows earlier this year. Trading at a PE of 17x forward earnings estimates the index certainly isn't undervalued. However, in comparison to the decreasing global yields in our contemporary world of NIRP, the TSX index remains attractive to the 'buy and hold' investor for it's dividend yield of nearly 3%. Yield hungry investors may continue to bid up the price of the TSX, as it offers a substantial 'risk premium' spread over 10 year government bond yields. The TSX generally shows a very high correlation to the price of oil (at about 90% on the 20 day average). The index will likely continue to closely track the price movements of WTI going forward. The latest price drop in WTI shows weakness in a resistance level of near $50. Note latest weakness against upper bollinger band. Also weekly RSI of 64 is the highest in 8 months. The 'round figure' of $50 also likely serves as a kind of 'psychological' level in the mind of traders. The B.H. rig count has not only stopped falling and flattened out, but actually seems to be rising. A year ago when the rig count stopped falling, WTI dropped sharply to reach new lows. Canadian investors can own the TSX composite index using the iShares E.T.F. trading under the symbol XIC. American investors can buy the iShares MSCI Canada E.T.F which trades under the symbol EWC, offering access to 85% of the Canadian stock market and a lower yield of 2%. I'm interested to hear from any interested TSX traders and investors. Let's get a dialog going! Please do share your thoughts and insights!
TSX:TSX
by dime
The main Canadian index showing a nice path for the stock marketThe main Canadian index shows a very nice picture telling us to expect sideways action before another upleg materialize to end the advance from the January low. A very nice rally that is running out of steam pretty much like the US market. A good target is around the 14K mark. We will keep an eye on it and we think the top is in, we will let you know. This index has a strong bias towards Financials, Energy and Gold miners thus even if I think it is a good proxy for the overall direction of all markets, it is an even better indicator for those three sector and especially Energy and miners. We see this rally and the upcoming pullback as part of a bigger rally. In other word, we are bullish long term until further notice
TSX:TSX
by yauger
Bombardier's Government "Bailout" Hurting Shareholders Preface It comes to no surprise that once again the Canadian "too big to fail" manufacturing giant, Bombardier, is suffering against competition due to a low inventory turnover ratio and a CSeries line of Jets that just isn't selling. In their last quarterly report Bombardier made no recognition in the notes to the financial statements of the fact that they were behind on production. A quick inventory turnover ratio analysis suggests otherwise but the highlight this week is the failing CSeries Jets and the Quebec government's so called "Bailout" strategy for the program. Breakdown - The Quebec government invested US$1 billion (CA$1.3) for 49.5% of Bombardier's CSeries and 200m warrants for BBD.B. - The government is not in for the money, but to solve a confidence crisis. The CSeries is not expected to deliver free cash flow until 2020. - Bombardier's CSeries is in a Catch-22. The CSeries program can't survive without orders, and there's won’t be orders unless the CSeries program survives. The Bailout Bombardier Inc. is primarily traded on the Toronto Stock Exchange under the tickers BBD.B and BBD.A. Class A has ten votes per share, and Class B has one vote per share. The Beaudoin-Bombardier family has 54.35% of all the voting rights. BBD.B is the most commonly traded ticker.Investissement Québec, the government's investment arm, announced a partnership with Bombardier that would regroup the asset liabilities of the CSeries project. For US$1 billion (CA$1.3b) and warrants to purchase 200 million shares of BBD.B for $2.21 each, Investissement Québec will own 49.5% of the partnership. The exercise price of the warrants is 58% higher than the current stock price of $1.40, and if exercised, it would make the government the largest owner of Class B shares. In exchange, BBD promised to keep its headquarters in Quebec for the next twenty years and CSeries-related activities. BBD will get US$500m on April 1, 2016 and another US$500m on June 30, 2016. By the way, it's noteworthy to mention that this is not the company's first instance of governmental aid. Different levels of government have backed Bombardier time and again over the decades. How Does This Hurt Shareholders Governmental aid has proven in the past to ruin the overall trust and reputation of share prices persuading investors to think of Bombardier as a unstructured company using taxpayer funds to operate. Shareholders equity margins have decreased substantially over the past couple of months highlighting that Bombardier's return on equity as under performing. By simply reading the Management Discussion section in their annual report investors greatly shy away causing bearish runs and short lived positive divergences. Lastly the 200M warrants held by the Government discourage future investors from going "Long" on the Class B shares (BBD-B.TO) with fear of the warrants being exercised beore expiry and possibly hurting the share price.
TSX:BBD.B
by Machiavelli