Tuesday, September 12, 2006

Telecom hits new highs

After testing its 40-week moving average during the summer months, Telecom HOLDRS (AMEX:TTH) is back on track. It's ralling point was almost two months ago when it surged from $29 to $31, but the current high is breaking as a resistance point. Consumer stocks in general are doing well, but a strong move by telecom stocks should be a very good sign. TTH closed today at $32.40, as its performance continues to best the market.

Thursday, September 07, 2006

Gold stocks champion the market still

The performance of gold stocks in recent weeks shows us that investors have not abandoned their attachment to the commodity's bullish fate. Trading in Goldcorp (G) was again active, although the stock only advanced 1%. Goldcorp's courting of Glamis has been measured by the market, and the verdict is acceptable. Most importantly, the gold sector remains the market leader on the TSX, outperforming the broad market over the last 3-months by 11%. In the context of the ascendancy of this important commodity, it is again worthwhile to review the gold sector's relative performance to the equally important energy sector. Although both sectors are drivers of the TSX, they have a long-term pattern of inverse correlation. The graph above shows us that gold stock's relative performance has wrestled the lead from the formerly ascendant energy sector. This shift dates from about 52-weeks ago. The commodity currency for the two years prior to September 2005 was crude oil, but the pendulum has again shifted back to precious metals. Gold stocks are sparkling because it is their time to sparkle.

Tuesday, September 05, 2006

Rentcash breakout continues

Summer holidays over...back to the market!
After reporting stellar earnings for the fourth quarter, Rentcash Inc. shares (TSX:RCS) surged today by over 7%. RCS advanced 26% last week to the $7 level, bringing it to Stock Trends attention. The breakout coincided with the Bullish Crossover and triggered the stock's inclusion in last week's Picks of the Week report. RCS was also a Stock Trends Portfolio BUY last week at $7. Today's high was $7.80.