It was quite a week for the TSX. The week started with a plunge at the open on Monday and then a rally which saw the TSX struggle to stay above 12900. The goal for the bulls was 13,000 to reclaim some semblance of a rally. The bulls tried for two days but the high was set on Monday at 12,954.89 in the mid-afternoon. By the close of the week, the TSX was down 509 points for a loss of 3.93% on the week. It wasn’t among the worst of weeks for the TSX (unlike US markets) but it certainly is reaching unbearable losses for many investors.
Many of the ETFs and Mutual Funds that deal with Canadian Securities are cringing at what their returns are coming in at. 2015 saw the market open at 14,637.34. Friday’s close marked a total loss in the TSX of 2,191.89 points for a 14.97% loss since Jan 2 2015. If we take the high from 2015 of 15,524.75 the TSX is no down 19.83%. This is the worst year since 2008.
TSX First Week of Jan 2016
The first week saw Monday and Tuesday try to regain its footing. Since April 2015, the TSX has been unable to establish a stable bottom or even an interim bottom. This week was no different. Many analysts thought the TSX could hold the lows of August 24, the day investors panicked when China devalued its currency. That low was 12,705.17. The TSX is now well below that “bottom”.
You can see that Wednesday took the index down to try to hold the weak 12,750 support level. That failed on Thursday and the market hit 12,500. This is better support and the index spent Thursday and Friday trying to hold this support level.
You can see in the 15 minute chart below that by the final day momentum to the downside was drying up. Is this a sign of sellers tiring, or just a lull until the TSX moves still lower?
The TSX – Where To Next
It would be great to know where the TSX could end up next in order for investors to have some idea as to a possible timeline and some guiding valuations.
Here is the outlook for the Toronto Stock Exchange for the second week of Jan 2016 along with a review of last week’s market, and trade ideas and strategies for the upcoming week…… the rest of TSX The Week Ahead article is for FullyInformed Members.
TSX – The Week Ahead – 2nd Week Of Jan 2016
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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