Scanning the TSX financial sector:

In the last post I claimed the experienced technical analyst (the older guys) will track the asset managers or financial related issuers because they tend to lead the broader equity markets. Last night I ran a stock scan (or filter) of the TSX listed stocks with the filer argument set at a new 10-week high. I have found through back testing that a new 10-week high usually leads to higher prices over the short term – being about 10-weeks – the reverse applies to a new 10-week low. Stocks under $2 and low volume were rejected.

Thirteen stocks were selected and to my surprise – 3 were banks BNS, CM and TD. Our chart today is that of Canadian Imperial Bank Of Commerce (CM) plotted above Toronto-Dominion Bank (The) (TD) (weekly data) clearly displaying the new 10-week highs, another bullish sign for the broader Canadian equity market