-1- This has been a continuous climb from 13,900 to the current close of 14,984.20. There have been some minor pullbacks on the way, but not enough to solidify this uptrend.
-2- This climb to heaven is a search of a resistance. That happens when support is known (currently 13,850) but there is blue sky ahead in terms of no double top to rely on. Since 15,000 is a magic even number, there is a good chance that some selling will provide that pause that refreshes. However, the longer we wait, the harder the correction could be. So keeping our finger on the profit taking button would be a wise move at this stage, at least until a new higher support level is known.
-3- Given that 13,850 was an intermediary low, we should have by now been able to refine our target for the TSX by creating a price objective off that low. But that cannot be done because we do not have a new column of “O” yet. In those conditions, I become rather uncomfortable. If we did, would you believe 17,150?
My “ideal stocks” universe keeps growing every day. However it does lack diversification of ideas as most come from the oil and mines sectors. Such concentration does increase your risk as what goes up will have to come down. So buying from that universe gets more involved every day.
I cannot in good conscience highlight a stock of the week at this time. The current swing is overdue for a correction and good ideas will come during the forthcoming pullback.
I am still bullish, mind you, but many of my valuation indicators are getting over extended:
Let us take the TSX Hi-lo: it is at 84% right now. How much more can it go up to? 100%.
The Bullish % has just crossed the 50% threshold. Look at the chart. When it does that, it typically will take a pause that refreshes before continuing into overbought territory.
Stocks above their 200 days moving average just crossed 50% as well. A pause is due there as well.
Have a great week.
The Word
therealword@gmail.com









