The TSX is lagging New York

Now what? The Dow and the S&P 500 keep going to new highs but not the TSX. The reason we are behind of course, is some trouble in the commodity sectors. Gold is up but black gold is down; nickel is up but copper has fallen apart. We have two comments to make.

The first one is that it is very risky to try and figure what these commodity prices are going to be 3 months from now. We prefer to stick with the charts; there has been an upside breakout in nickel; gold is right at the breakout point; crude oil has broken down.

Our second point is that the heaviest weighted single sector on the TSX is the financial sector, and there is little or no trouble with the banks. As far as we are concerned the big two insurance stocks; Manulife and Sunlife; are excessively undervalued and technically in the right position, right now. For more on this get our latest Report (number 6); free and no obligation: fraserratings@yahoo.ca