View from Toronto: Triple Bottom or the Bottom Falls Out of TSX?

12/13/2018 2:16 pm EST

Focus: MARKETS

Ziad Jasani

Managing Director and Partner, Independent Investor Institute

If the TSX can hold > 14,655 and bounce back > 14,926, a higher probability of a move to re-test the 50-day average (15,284) initiates wherein the index, Financials, Energy, Industrials, Tech & Cannabis would be playable for a swing-low trade, says Ziad Jasani Monday.

video

View my weekly strategy session video here.
Recorded: Dec. 10, 2018.
Duration: 1:37:07.

However, if the TSX breaks 14,655 and remains below, longer-term investors would be raising cash, while short-term traders would use inverse ETFs to capitalize on the downside (HXD-T).
The configuration of a bullish scenario would likely include a steeper yield curve, out-performance from Financials, weaker bonds (XBB-T), under-performance from defensive equity sectors, a breakout on Oil and Energy Equities leading, as Precious Metal Miners and Gold fade.

• TSX Index (XIC-T, XIU-T, EWC, EWC v ACWI)
• XIC-T: Hold > $23.26| Hold-To-Buy > $23.71| Sell-Line $23.26
• XIU-T: Hold > $21.97 | Hold-To-Buy > $22.39 | Sell-Line $21.97
• EWC: Hold > $25.56| Hold-To-Buy > $25.99 | Sell-Line $25.56

• Financials (XFN-T, ZEB-T, ZWB-T)
• XFN-T: Hold > $34.78 | Hold-To-Buy > $35.35 | Sell-Line $34.78
• ZEB-T: Hold > $27.21 | Hold-To-Buy > $27.58| Sell-Line $26.99
• ZWB-T: Hold > $17.60 | Hold-To-Buy > $18.01 | Sell-Line $17.60

chart 1

TSX sector positioning this week
• Materials (XMA-T, XGD-T)
• XMA-T: Hold > $11.67 | Hold-To-Buy > $11.80| Sell-Line $11.50
• XGD-T: Hold > $10.61 | Hold-To-Buy > $11.05| Sell-Line $10.49

• Cannabis
• HMMJ-T: Hold > $16.35 | Hold-To-Buy > $17.75 | Sell-Line $15.95
• MJ: Hold > $29.82 | Hold-To-Buy > $30.28 | Sell-Line $28.12
• WEED-T: Hold > $42.52 | Hold-To-Buy > $42.52 | Sell-Line $41.18
• CGC: Hold-To-Buy > $32.80 | Sell-Line $30.16
• ACB-T: Hold-To-Buy > $7.85 | Sell-Line $7.10
• APHA-T: Hold-To-Buy > $7.25| Sell-Line $7.25
• CRON-T: Hold-To-Buy > $16.53 | Sell-Line $15.81
• TGOD-T: Hold-To-Buy > $3.50 | Sell-Line $2.59 • OGI-V: Hold-To-Buy > $4.99 | Sell-Line $4.19
• TLRY: Hold > $96.25 | Hold-To-Buy > $105.49 | Sell-Line $96.25
• FIRE-V: Hold-To-Buy > $1.55| Sell-Line $1.42
• GENE-V: Hold-To-Buy > $1.15 | Sell-Line $1.05
• HEXO-T: Hold-To-Buy > $5.53 | Sell-Line $4.92

• Industrials (ZIN-T)
• ZIN-T: Hold-To-Buy > $25.46 | Sell-Line $25.46

• Utilities (ZUT-T, ZWU-T)
• ZUT-T: Hold > $16.57| Sell-Line $16.35
• ZWU-T: Hold > $12.64 | Hold-To-Buy > $12.84 | Sell-Line $12.53

chart 2

TSX sector weights for the week
Staples (XST-T)
• XST-T: Hold-To-Buy > $55.94| Sell-Line $54.99

• Telecom (Telecom Equal Weight, BCE-T, RCI.B, T, SJR.B)
• BCE-T: Hold > $56.65 | Hold-To-Buy > $57.07 | Sell-Line $56.65
• RCI.B: Hold > $70.31 | Hold-To-Buy > $70.31| Sell-Line $69.24
• T: Hold > $47.25 | Hold-To-Buy > $47.66 | Sell-Line $46.67
• SJR.B: Hold-To-Buy > $24.80 | Sell-Line $24.80 & $24.52

• REITs (XRE-T, ZRE-T)
• ZRE-T: Hold > $21.67 | Hold-To-Buy: $21.67 | Sell-Line $21.30
• XRE-T: Hold > $17.54 | Hold-To-Buy: $17.54 | Sell-Line $17.07

• Technology (XIT-T) • XIT-T: Hold-To-Buy > $18.56 | Sell-Line $17.95

• Energy (XEG-T, ZEO-T)
• ZEO-T: Hold > $8.20 | Hold-To-Buy > $8.40 | Sell-Line $8.20
• XEG-T: Hold-To-Buy > $9.75 | Sell-Line $9.45 & $9.21.

Enjoy a complimentary no-strings attached 30-day subscription to Ziad Jasani’s Daily Insights. Simply send Ziad an email with FREE TRIAL in the subject: ziad.jasani@educatedtrader.com

Related Articles on MARKETS

Keyword Image
3 Plays on e-Commerce
12 hours ago

I don’t know how you could have missed it, but in case you did, Amazon (AMZN) blew earnings ou...

Keyword Image
Two Plays on Climate Change
12 hours ago

There is little good news to report about climate change. The greenhouse gases that most scientists ...

Keyword Image
Visa Keeps Charging Ahead
02/20/2020 5:00 am EST

Visa (V) is trading near record heights; in the last year, the stock is up 47%. This is even more im...