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Lower bond yields cause froth in dividend sectors

The S&P/TSX Composite moved less than one tenth of one per cent for the five trading days ending with Thursday’s close and its Relative Strength Index (RSI) reading of 63 remains just below the sell signal of 70.

The list of oversold, technically attractive stocks remains tiny at two; frequent guest Aimia Inc. and newcomer ATS Automation Tooling Systems Inc. The small number of attractive potential buying opportunities goes hand in hand with the high RSI level for the benchmark as a whole and provides further evidence of general market optimism.