Monday, April 11, 2016

The new 52-week high / low rule:

In my last post – I observed that most of the technical analysts I know have their own style or skill sets they apply to the study of the capital markets. Technical analysis is an art form and differs from the fundamental analysis of profit and loss statements and balance sheets which is a mathematical study of past history      

The technical analyst will also scan the new 52-week high / low list because we know the 52-weekk high / low rule – the first new 52-week high will not be the last and, the first new 52-week low will be the last.

At the close on the TSX April 11, 2016 there were about 32 new 52-week highs (I ignore non common issuers) and of the total population 28 were commodity related. Names like Asanko Gold Inc, Yamana Gold Inc, Kinross Gold Corporation, Barrick Gold Corporation, First Majestic Silver Corp, NovaGold Resources Inc., Detour Gold Corporation and Agnico Eagle Mines Limited were listed.

Most of these names are components of the TSX listed iShares Materials ETF (XMA) and so to avoid stock picking why not just own the XMA?

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