It was a wild week on the markets. In fact, the Dow put in its worst weekly performance, a 4.2% loss, since June 2010. For the month of July, the Dow was off 2.2%, the Nasdaq declined just over one-half of 1%, the TSX dropped 2.7%, but…the star performer for July was the TSX Venture Exchange (CDNX) which enjoyed its second-best month of the year, climbing 3.9% or 75 points to 1979. That also slightly beat the TSX Gold Index which moved up 3% this month.
While the Venture certainly got a boost from Gold’s sharp increase in July, there’s no way this speculative market would have performed the way it did this month if some sort of disaster was looming for the broader markets and the financial world as a whole. The CDNX is an incredibly accurate leading indicator. Speculative money is the first to flee on any hint of major trouble ahead, so what this market seems to be saying is that we can all enjoy our weekend (Canadians have a long weekend with Monday being a holiday) as the United States will somehow manage to avoid economic “Armageddon” next week.
Bullish action in the Copper market is also problematic for the bears and fear mongers.
The CDNX ended a long correction June 28, jumped 199 points or nearly 11% in just 18 sessions, and today completed a 50% retracement of that advance. Very normal technical behavior in the early stages of a powerful new uptrend which we maintain the CDNX is in.
John updates the CDNX chart below:
GBB is getting close to 37 cents …. buying time….. and will rebound to 42-45 cents range. My 10 % profit theory will work again…. I put my lot at 37.5 cents and is very likely to get it. SD – I am still waiting for the crazy dump at 3 cents …. I put a large buy lot there. SFF was surprisingly 2 cents up on Friday but it will not stay long… Tuesday will be a losing day. BER should approach 10 – 10.5 cents range soon… you may want to buy if you want to gamble a little bite. Not many players there and people are cutting loss with those purchases at 20 -25 cents level.
Comment by Theodore — July 30, 2011 @ 11:14 am