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
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