The S&P/TSX Composite leapt another 1.9 per cent for the trading week ending with Thursday’s close and is now butting up against double figures for 2021 at 9.7 per cent.
The benchmark is hovering at the high end of technically neutral territory according to Relative Strength Index (RSI) with a 64 reading that is far closer to the overbought sell signal of 70 than the oversold, RSI buy signal of 30.
There are no companies trading in the technically attractive sub-30 range this week and nothing really close. Blackberry Ltd and Cineplex Inc. have the lowest RSIs, tied at 36.
There are fewer overbought names trading above the sell signal this week than I expected at 13. Dollarama Inc. is the most overbought company in the index, Bombardier Inc., Stantec Inc. and Premium Brands Holdings Corp. are next.
There are a surprising number of defensive, non-cyclical stocks trading at overbought levels including Emera Inc., George Weston Ltd., and Waste Connections Inc.
Once again there are no stocks hitting new 52-week highs or lows. The lack of new highs is surprising in light of strong benchmark returns.
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Scott Barlow