This is the video recording of our November 1, 2021 Monthly Charts Live Strategy Session
From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
Is the US Dollar Index $DXY on the brink of completing a massive reversal pattern to the downside?
As more evidence comes into the picture, it’s looking increasingly dire for the dollar. In fact, we’re seeing it trend lower across all timeframes against almost all of its peers.
And this action has only gained steam over the last week as DXY has plunged to fresh multi-month lows.
Dollar weakness has been a nice tailwind for risk assets since its peak in March of last year. Any additional downside pressure in the coming weeks, months, and even quarters would not surprise us… especially if this daunting double-top pattern breaks lower. If and when this happens, further weakness from both a tactical and structural standpoint is exactly the bet we’ll be making.
Let’s dig deeper and look at what actually drives the DXY. By looking at the various crosses that make up the index, we gain insight in terms of building a directional bias for DXY. This process also provides a weight of the evidence framework we can use to build a much bigger picture view of the greenback and its overall health.
This is the video recording of the April 2021 Conference Call.
In a market environment where Financials and Natural Resources have become leadership groups, how do we not have a conversation about Canada? Taking that one step further, we need to talk about how any investor, whether living in Canada or not, can take advantage of a potential structural swing in the trend for Canadian Equities.
David Cox is someone who I’ve discussed markets with for many years. We usually hook up every Spring in New York City at the annual CMT Symposium. It’s only fair that I let the rest of the world eavesdrop on our chats. He’s a bright guy with good perspective on all things stocks, interest rates, forex markets and even Bitcoin.
David is a Portfolio Managers at CIBC and is a true trend follower. He tells it like it is. I really enjoy that about him. I was looking forward to having this conversation, and he exceeded all expectations. David really brings it in this episode!!
I hope you enjoy. And make sure to give him a follow on Twitter @DavidCoxWG
Value stocks, Financials, Energy, Industrials and Materials.
If that doesn’t scream Canada, then I don’t know what does!
Here’s what the breakdown looks like: [Read more…]
The Canadian economy is dominated by Financials and has a diverse and abundant exposure to natural resources. Despite the close proximity, the composition of the country’s stock market couldn’t be more different from that of the US.
They have a much higher relative exposure to areas like Financials, Energy, and Materials… Basically, all the things that are working.
On the other hand, they have significantly lower exposure to areas like Technology, Health Care, and Discretionary… Basically, all the areas that are NOT currently working.
Long story short, considering the current backdrop of global economic growth and reflation, rising rates and commodity prices, and rotation into cyclical areas and value stocks… the environment is as ripe as ever for Canadian Equities.
In this post, we’ll discuss the emerging strength we’re seeing from Canada and outline a variety of ideas to take advantage of it.
I was away from the office last week with the team, but I was still able to pop into BNN Bloomberg for a quick hit.
We discussed the fact that fear among investors is off the charts, stocks are in uptrends and breadth is expanding. I think the beginning of the new Commodities Supercycle is bullish for stocks and just another tailwind to take them higher.
If the tv anchors think I’m making a bold call by suggesting that stocks in uptrends will go higher, then we’re probably not near a top.
Here’s the interview in full:
This is the video recording of the November 2020 Conference Call.