Despite the Bank of Canada holding interest rates this morning, Canada’s main stock index slumped after a strong opening to end the day down 98 points. Energy was down 2.1%, materials 1.6%, and financials 0.63%. Bombardier was a bright spot, up 22% after Reuters reported it had rejected a Chinese takeover of its rail business.
U.S. stocks closed down more than 1.0%, giving back most of yesterday’s strong gains. Declines in Apple shares and energy stocks led the market lower after a strong opening.
For a complete Market Recap, watch our CA Colour Guard Video – Click Here.
While our Market Timing Indicator (MTI) remains near the 0.60 benchmark signaling we’re near a market bottom, global events such as China’s continued slowdown and the Fed Reserves meetings on interest rates next week continue to keep the market from a steady advance. It’s a news driven market, one where downside risk continues to outweigh upside potential.
In the Strategy section in the Views tonight, VectorVest strengthened its cautionary guidance:
STRATEGY: The Canadian share markets ended in negative territory today as losses in energy stocks offset gains in Bombardier. With three yellow lights and a UpDn situation:
Prudent Investors should not buy stocks at this time.
DISCLAIMER: The information contained in this Blog is for education and information purposes only. Example trades should not be considered as recommendations. There are risks involved in investing and only you know your financial situation, risk tolerance, financial goals and time horizon.
Presented by Stan Heller, Consultant, VectorVest Canada