Changing sentiment and expectations can be clearly seen in this week’s changes in the SIA Charts Asset Class Rankings. Commodities has jumped up to 1st place, resource-sensitive CAD Equity is steady in 2nd place, while US and International Equity have dropped down in the rankings. In this issue of Equity Leaders Weekly, we look at recent broad-based strength in the Canadian Dollar and at the implications of a breakdown in the Russell 2000.
Tesla Motors (TSLA) shares have turned decisively downward this week. Cracks in the previous uptrend first started to appear back in February then the shares broke below their 50-day moving average, then in an April bounce, they peaked at a lower high. This week, the shares have snapped an uptrend line and then confirmed the start of a new downtrend by falling below the $600 round number and taking out several winter weekly closes to complete a bearish Descending Triangle pattern.
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