On the rare occasions when Canadian bank stocks reach oversold levels, the lesson appears to be, Hold your nose and just buy them. I was hoping National Bank and Bank of Montreal would get a little bit cheaper this week. Instead, they bounced hard and the buying opportunity slipped away.
The S&P/TSX Composite finished flat over the past five sessions despite considerable volatility. In terms of Relative Strength Index, my preferred technical indicator, the benchmark is almost exactly neutral, at the mid-range between the 30 buy target and 70 sell signal.