The outlook for Thursday for the TSX was for stocks to be weak but the index to squeeze out a slightly positive gain. The most surprising aspect of the Toronto Stock Exchange for most investors is why when the larger US indexes plunge, does the Canadian Index not always follow? Well often the TSX does follow the US Indexes lower, particularly in a bear market, but at present this is a bull market and as such the events in the Ukraine and Gaza drove up metals and gold. Gold has been on a decline and when it broke $1300 many analysts turned bearish. Today gold rose $20.00 placing it well above $1300 an ounce again.
Meanwhile with gold stocks climbing today and solid earnings from Canadian Pacific Railway, the Toronto Stock Exchange was down just 21.86 points on the day.
CP Rail Stock (CP)
As explained in my article on July 15 I sold the $185 put strike on CP Stock for August 16 expiry. I will be closing it shortly. Earnings jumped 48% in what is among the best quarters ever for CP Rail. CN Rail (CNR) shares moved up 32 cents on the news in anticipation that CN revenue will be exceptional as well.
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TSX Market Direction Outlook for July 18 2014
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