Comments on: Tech Talk for Monday November 9th 2009

By: DJ

DJ — Tue, 10 Nov 2009 03:13:53 +0000

Mr. Vialoux
I have a question about the declining volume on the TSX and as well the American Indices. Does the volume from ETF’s get added to the indexes? For example if HOU has a volume of 10 million will that volume be added to the TSX volume? Today I caught just the tail end of a guest on BNN and if I heard correctly he attributed the declining volume to more and more investors using ETF’s rather than stocks. That statement led me to believe that the volume is not added to the TSX. Your comments are greatly appreciated.
Donna

By: Don Vialoux

Don Vialoux — Tue, 10 Nov 2009 02:47:26 +0000

Hi Mills. The charts will let us know. Short term technicals and seasonality currently are favourable, but chances of a deterioration in short term technicals for at least a short period of time between now and year end are high.

By: Don Vialoux

Don Vialoux — Tue, 10 Nov 2009 02:43:04 +0000

Hi Ken. My trend line for the Transportation Average in today’s Tech Talk is slightly misleading. Actual trend for the Average is neutral (i.e. a break to a 2009 high but a recent break below support. Short term technicals have turned positive (i.e. uptrending Stochastics and RSI as well as a move today above its 50 day moving average.

By: Don Vialoux

Don Vialoux — Tue, 10 Nov 2009 02:36:29 +0000

Hi Jeff. Investing in U.S. equity ETFs includes significant downside currency risk for the average investor. A possible solution will be revealed by Bay Street shortly.

By: Don Vialoux

Don Vialoux — Tue, 10 Nov 2009 02:34:18 +0000

Hi Huy. A head and shoulders pattern by the S&P 500 is not clearly defined yet. A move by the S&P 500 to a new 2009 high (possibly as soon as tomorrow)would eliminate the possibility of the pattern.

By: Don Vialoux

Don Vialoux — Tue, 10 Nov 2009 02:31:54 +0000

Hi Roy. AAPL currently has a more positive intermediate technical profile than RIMM. However, don’t give up on RIMM. Short term technical indicators (Stochastics, RSI)turned positive today. Seasonal influences are positive for both.

By: Don Vialoux

Don Vialoux — Tue, 10 Nov 2009 02:29:26 +0000

Hi Chrispycrunch. The comment in Saturday’s Financial Post and on this site today was far from a ringing endorsement. Looking for a relatively short term trade as analyst come out with favourable comments and as short term technicals recover from oversold levels. The National Bank analyst was the first to offer comments on fourth quarter expectations in a report released today. His comments were one of the reasons for the spike in the Canadian Financial Services sector today. Short term technicals continue to improve.

By: Don Vialoux

Don Vialoux — Tue, 10 Nov 2009 02:23:00 +0000

Hi Andrea. A seasonality study on uranium has not been possible to date because a public index showing data for at least 10 years is not available. Closest we have is seasonality on Cameco. Its period of seasonal strength is from the end of October to the end of May with a sweet spot between the end of January to the end of May.

By: Mills

Mills — Mon, 09 Nov 2009 19:21:46 +0000

Hi Don,

do you see a pullback between now and end of year ??

Thanks

By: Ken

Ken — Mon, 09 Nov 2009 14:48:09 +0000

Good morning Don,

Can you please explain your intermediate trend analysis? I have noticed similar comments on the different charts but I am going to use the Transports as an example. There was a lower closing low and the trend line drawn from the Mar low through July low and early Oct low broken. Chart reading is so different to different people and I would just like to know how you interpret them in your analysis?

Thanks,

Ken