The Canadian equity market continues to conspire against this weekly column, remaining prohibitively expensive in technical terms while offering up a minimal number of oversold trading opportunities.
The S&P/TSX Composite climbed a decent 0.82 per cent Thursday to Thursday, and its Relative Strength Index reading of 66.2 hovers close to the overbought sell signal of 70. While not officially in danger territory, the benchmark is sufficiently extended to keep sane index investors on the sidelines.
CIBC is now the most overbought, technically extended stock in the S&P/TSX Composite with an RSI of 78. The current management team has done an excellent job de-risking operations, but there will likely be better times to add to holdings of the stock.
Maple Leaf Foods is also overbought which at first glance is a bit of a mystery given the forward price-to-earnings of 143 times.
The usual caveats apply. Technical tools like RSI are effective as part of an overall stock selection process that involves fundamental analysis – they’re not enough on their own.
Follow Scott Barlow on Twitter at @SBarlow_ROB.
|Name||Ticker||RSI||1W Return %||PE Ratio TTM||PE Ratio Fwd|
|Dundee Corp -Cl A||DC.A||23.05||-2.37||N/A||N/A|
|Westjet Airlines Ltd||WJA||24.95||-4.11||11.52||11.23|
|Thompson Creek Metals Co Inc||TCM||28.34||-10.90||N/A||N/A|
|Dundee Real Estate Investm-A||D.UN||30.06||-0.74||6.80||10.32|
|Great-West Lifeco Inc||GWO||30.88||-1.71||13.80||12.14|
|Can Imperial Bk Of Commerce||CM||78.06||1.32||10.93||11.10|
|Black Diamond Group Ltd||BDI||76.28||5.24||26.91||18.82|
|Canadian Energy Services & T||CEU||74.55||12.30||52.00||29.71|
|Canadian Utilities Ltd-A||CU||74.00||2.54||17.41||16.88|
|Badger Daylighting Ltd||BAD||73.66||9.79||34.08||27.76|
|Raging River Exploration Inc||RRX||73.00||7.32||31.19||20.24|
|Bankers Petroleum Ltd||BNK||72.85||3.76||20.37||14.88|
|Maple Leaf Foods Inc||MFI||72.53||4.16||141.75||123.26|
|Hudson'S Bay Co||HBC||72.25||4.55||15.57||27.13|
|Vermilion Energy Inc||VET||72.05||5.45||24.35||20.08|
|Precision Drilling Corp||PD||71.63||9.75||18.99||13.99|
|H&R Real Estate Inv-Reit Uts||HR-UN||71.11||1.29||16.21||13.27|
|Baytex Energy Corp||BTE||70.50||4.99||33.81||18.37|
|Algonquin Power & Utilities||AQN||69.84||1.69||27.96||23.66|
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