The following is the
opinion of Canadian technical analyst Leon Tuey...I’m not one who necessarily
likes to get into predictions but there are always exceptions. Take the
following comments with a grain of salt. They are the opinion of a very good,
seasoned technical analyst who has a good track record and is not an ego-maniac
like so many in the industry.
Technical analyst Leon Tuey identified the start of the
current North American equity bull market many years ago. He continues to
believe that there is much more upside left. He noted on Dec. 5 noted that in
May, gold broke out of a six-year base and that it appears headed significantly
higher. U.S. WTI oil has traded above US$60 and from a technical analysis
perspective looks to be headed 55 per cent higher to US$93. The price of lumber
bottomed in May 2019 and also appears to be headed higher. The forecast rise in
all of these commodities would be very positive for the TSX in 2020.
Mark Deriet, quantitative and technical analyst at Cormark
Securities, recently recommended continuing selling defense stocks in favour of
cyclicals. His breadth measures bottomed in December 2018 and the last time it
happened before that on February 2016, cyclicals outperformed defensives by 33
per cent. We expect this rotation will benefit the relative performance of TSX
stocks In the coming year. After a potential intermediate correction in the
first quarter, we expect North American equities will continue to move higher
over the coming year.
Resources,
Robert Mcwhirter,
Robert Mcwhirter,
BNN-Bloomberg
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