The outlook for Thursday was for the TSX to sell lower. While the bounce on Wednesday seemed to support those analysts who believe oil has bottomed, the collapse today in stocks shows that yesterday was simply a bounce. It was a big bounce, but a bounce nonetheless.
Overall the TSX is being literally pummeled by the decline in energy and commodity prices. The continued strength of the US dollar is wreaking havoc with commodity prices and subsequently Canadian commodity stocks. Today’s plunge was the worst in 18 months but as explained in numerous outlooks there have been many signals warning that the TSX was going to pullback.
TSX Intraday For Dec 4 2014
The day started off down but a small rally within the first few minutes, allowed me to short the XIU which is what I had outlined I would be doing in last night’s TSX Market Direction Outlook.
After that short rally, the morning saw the TSX drop steadily until by 10:40 the market began to drift sideways. The sideways action continued right through 3:00 PM. The TSX had not managed any kind of rally during this sideways movement. That, coupled with a decline in oil prices in the afternoon after news Saudi Arabia was selling oil at reduced prices, hammered stocks into the close. The drop brought in a few bargain hunters which resulted in a slight rally. Overall though the TSX has one of the worst days in a year and a half losing 284.11 points.
The rest of this TSX market direction outlook and trade ideas is for Canada Members.
TSX Market Direction Outlook and 5 Trade Ideas for Dec 5 2014
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