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

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 

The Canadian Technician

Big Swings In Sectors 2018-05-25 Video

by Greg Schnell

This week saw a vicious reversal in the energy sector and a few buy signals in other sectors. Starting with energy, this is a textbook example of an outside reversal bar. The price bar opens the week and moves higher, then reverses mid week and makes a lower low than the previous week, and closes near the lows. The RSI did not make a new bullish signal by touching 70, which is disappointing. In terms of relative strength in red, the energy sector made three month highs in relative strength, but that was about all. It was a short week with the holiday on Monday, and volume may look Read More 

The Canadian Technician

Some Good News On The Canadian Front

by Greg Schnell

The Canadian market has been underperforming for a while. This week some clues of change started to show up. First of all, for the first time since 2016 the Canadian market broke a downtrend compared to the $SPX. Obviously, it is just barely breaking a downtrend, not turning higher yet. However, you can see on the left side of the chart, that when Canada outperformed for the first decade this was a worthy signal to be aware of. It was also a good signal to be in Commodities in early 2016. I discuss this chart at length on the video.  One thing that Read More 

The Canadian Technician

Energy Sector Starts Improving 2018-04-11 Video

by Greg Schnell

This week I am in New York for the annual CMT Association 2018 Symposium. It is always nice to be in a room of chartists talking charts. New York is always great as you see the industry names everywhere. JP Morgan Chase, Bloomberg, Fidelity, Morgan Stanley, and the list goes on. At the meetings this week are John Bollinger of Bollinger Bands, Marc Chaikin of Chaikin Analytics, and Julius de Kempenaer of RRG to name just a few. It is always outstanding to see and hear from these great minds in Technical Analysis. The Canadian charts are really Read More 

The Canadian Technician

Bear Flag On Canadian Financials

by Greg Schnell

This week, the Canadian market internals are messy at best. We have so many things that are sliding so we should be leading off with the banks. They set the Canadian tempo currently. The bear flag on the Canadian banks suggests more moves to the downside. The Tech stocks north and south of the border are struggling. Canada's tech sector has rolled over as well. Here is the Healthcare chart with a big influence from medical marijuana. Parabolic surges don't end well. This chart looks in jeopardy. The $TSX looks firmly broken. This Read More 

The Canadian Technician

When Everything Aligns Technically - Huge Potential

by Greg Schnell

With Gold rising last week, there appears to be a renewed interest in the precious metals theme. Canada is home to lots of precious metals resource companies so its timely to review the setup for $Gold. Intermarket analysis is the examination of different parts of the asset markets to see if there is confirmation in a  trade. There are four asset classes used in Technical Analysis. Equities, Commodities, Currencies and Bonds. Typically a rising US Dollar is correlated with falling commodities, but even that confirmation is not always true. Using a variety of Read More 

The Canadian Technician

Canadian Technology Rocks 2018-03-13 Video

by Greg Schnell

The last two weeks has seen a huge surge in the Canadian Technology sector. These stocks have ripped to the upside. Here is a list of the technology stocks in order of SCTR strength. The Industrials are still doing well. One concern is the break in PPO momentum. At this point it is wait and see. The charts that seems to be lining up for some drama is Gold and the Gold miners. The Full Stochastics is starting to bounce off the 20 level. Price continues to hold at support here. The nice part about considering a position in gold miners here is Read More 

The Canadian Technician

Canada Bounces Into Resistance 2018-02-27 Video

by Greg Schnell

Canada has not been in the big bull market the USA had going earlier this year. After a big pullback in the USA and Canada, we are watching the height of the bounce to see if Canada can get back into the bullish camp. Currently the $TSX has bounced up and stalled at the area of resistance that has been in place for four years. However, there are broader concerns. The RSI indicator shown in the top panel bounced down to 30. A bear market indication occurs when the weekly RSI gets down to 30.  Canadian breadth is poor but above dismal. Breadth is defined as the number of Read More 

The Canadian Technician

Canada Prints Very Weak Sector Charts 2018-02-13 With Video

by Greg Schnell

The Canadian charts have been getting weak for a while. The last two webinars pointed to declining strength in the Canadian market. The breakdown in the last two weeks just accelerated the downward trend, it didn't start it. The financial sector really needs to rebound soon to not break the uptrend in momentum shown on the PPO chart. The energy sector is abysmal. The RSI is in bear market mode. The energy sector is near if not at 2-year lows. That was sudden. The 8-month uptrend on the PPO is breaking down at or near zero. That is just terrible. It is Read More 

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