The S&P/TSX Composite climbed another 2.9 per cent for the trading week ending with Thursday’s close and the year to date total return is now surprisingly close to flat at -4.3 per cent. The domestic equity benchmark is approaching technically vulnerable territory with a Relative Strength Index (RSI) reading of 63 that is far closer to the overbought RSI sell signal of 70 than the oversold buy signal of 30.
There are no oversold, technically attractive index constituents this week as we’d expect given the strong markets. Corus Entertainment Inc. (B) is closest to the buy range with an RSI of 34.
I expected more than 11 overbought, technically vulnerable benchmark stocks, but that’s what we have this week. TFI International Inc. is the most overbought company in the index, followed by a host of paper and forest stocks – Canfor Corp., Interfor Corp., and West Fraser Timber Co. Ltd. and Norbord Inc.
There are five S&P/TSX Composite stocks showing strong price momentum by hitting new 52-week highs and they are sorted by market capitalization below. The major railways – Canadian National Railway Co. and Canadian Pacific Railway Ltd – top the list. They are joined by TFI International, Richelieu Hardware Ltd., and Cascades Inc.
There are no benchmark stocks making new 52-week lows.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.