Broad correction on TSX

The TSX suffered considerably this week as the fear of a commodity blowout sent many investors to the exit. As a sample of this broad selling the Stock Trends distribution of Bullish stocks shifted considerably toward Weak Bullish. The S&P/TSX Composite, the big cap S&P/TSX 60 Index, as well as the S&P/TSX Midcap and Smallcap Indexes all lit up us Weak Bullish this week. Most telling of the breadth of the selloff is that 28% of trending stocks are now Weak Bullish. This is an important moment for the TSX as investors will look for a signal that the commodity cycle, while partially deflated, is still in swing.

 

 

Bulls & Bears graph

http://www.stocktrends.ca/?page=stbvb

 

May begins TSX symbol changes

Yes, the Toronto Stock Exchange has begun its about-face on the symbol extensions it introduced in 2004 - the ones that denoted specific subordinate, non-voting, restricted-voting, and multiple voting stocks. Stock Trends must endeavour to manage these changes again. The schedule for these symbol changes is published by the TSX at http://www.tsx.com/en/pdf/SymbolChangeList.pdf

BlackRock jackpot

It has been a long and joyful ride for BlackRock Ventures (TSX:BVI) shareholders, but today caps off the bullish trend with a cherry. Shell Canada has made an offer of $24 share for BVI, putting the buyout at $2.4-billion. The stock jumped on the news today and is now trading at $23.75, up 26% from Friday's close. Stock Trends followers will remember BVI's breakout in early 2005 as the stock was a Pick of the Week and a Stock Trends Portfolio buy on January 13, 2005 (at $8.80). That trade was stopped out at $9.22 on some volatility, but BVI has remained bullish through the stocks rallies and retreats. For those that stuck with BlackRock there is good reason to celebrate today.

 

http://www.stocktrends.ca/?page=streport&symbol=BVI-T

Potash Corp turns bullish

Although Potash Corp. (TSX:POT) was playing with a trading range as it recovered from its bearish trend in the later half of 2005, the stock is showing signs of moving past resistance at $115. The secondary trend line for POT has moved above the long-term trend line, an event signalled by the Stock Trends Bullish Crossover. The newly Bullish stock is currently out-performing the S&P/TSX Composite by 9% over the last quarter and could be poised for a summer move.

 

http://www.stocktrends.ca/?page=streport&symbol=POT-T