Go to the Globe and Mail homepage

Jump to main navigationJump to main content

AdChoices

In broad rally, most sectors of TSX overheating Add to ...

Subscribers Only

Virtually every sector of the Canadian equity market is dangerously extended. While conditions can change very quickly, technical indicators suggest a low probability of success for most traders and short term investors.

Professional traders depend heavily on technical analysis precisely because market conditions change rapidly. Sectors and stocks that are hugely oversold and poised for a rebound can move to a dramatically overbought danger zone in a matter of days, though the opposite is also true – the technical environment described here could be completely outdated by Thursday. Investors with a longer time horizon generally don’t have to bother with the technicals; the exceptions are cases where longer term investors are looking to add a new positions or sell an existing investment.

Report Typo/Error

Follow on Twitter: @SBarlow_ROB

Next story

loading

Trending

loading

Most popular videos »

More from The Globe and Mail

Most popular