Railroad Canadian Pacific (CP.TO) drifted down the rankings in the SIA S&P/TSX 60 Index Report over the last eight months of 2023, sliding out of the green zone and falling down into the red zone. In the last month, the stock’s relative strength has started to improve and the shares have climbed back up out of the red zone into the Yellow Neutral Zone.
In the last month, CP.TO has climbed 14 positions to 23rd place. Over that time, the shares have climbed 9.15% while the S&P/TSX Composite Index has fallen 0.75%.
As one of the top two largest market cap stocks in the world, and one of the highest weighted stocks in large cap US and global indices, Apple (AAPL) can be seen as one of primary bellweather stocks for equity markets.
After a relatively slow start to the year, Apple spent most of 2023 in the green zone of the SIA S&P 100 Index Report, particularly from April through to the end of last year. Apple kicked off 2024 by dropping out of the green zone into the Yellow Neutral Zone and it has been steadily sinking back down the rankings since then. This decline suggests that investors may be taking profits in big caps, particularly in Technology and rotating capital down the food chain or out to other sectors. Over the last month, Apple has dropped 17 positions to 38th place.
In this edition of Equity Leaders Weekly, we take out monthly look at Sector Scopes and consider what forces are driving trading in USDCAD along with their wider implications.
Tourmaline Oil (TOU.TO) spent most of this year in the green zone of the SIA S&P/TSX 60 Index Report, but its relative strength started to erode in early November. Over the last month, TOU.TO has dropped 34 spots in the relative strength rankings to 46th place, falling out of the green zone and deep into the Red Unfavored Zone. Since leaving the green zone, TOU.TO has lost 12.5% of its previous value.
Agricultural, forestry, machinery, and heavy equipment manufacturer Deere & Co. (DE) has been steadily sinking since it joined the SIA S&P 100 Index Report in the neutral zone back in September. Since it entered the report, it has declined by 13.8%, including a decline of 2.2% since it fell into the Red Unfavored Zone about a month ago, right about the time that broader markets took off. In comparison the comparable index ETF is up 3.8% in the last month.
Grocer Metro Inc. (MRU.TO) has been out of the green zone of the SIA S&P/TSX 60 Index Report since July of 2022. Over that time, the shares are down 2.5%.
Metro climbed up the rankings and out of the Red Unfavored Zone between March and October, but as North American equities have rallied over the last month, MRU.TO has sunk back into the Red Zone. On Friday, it finished in 33rd place, down 3 spots on the week and down 8 positions in the last month.
In this edition of Equity Leaders Weekly, we look at the current state of the oil price and at capital rotation between large cap and small cap stocks in the US.
With the price of gold breaking out to a new all-time high on Friday, stocks of gold producers continue to attract attention from investors. The top ranked gold stock in the SIA S&P/TSX 60 Index Report is Kinross Gold* (K.TO), which has been in the Green Favored Zone since March and is currently sitting in 4th place. The only other precious metal stock currently in the Green Zone is Wheaton Precious Metals (WPM.TO) which is in 12th spot.
Over the time Kinross Gold* had remained in the Green Zone, K.TO has returned 34.3%, including a gain of 9.2% since we last mentioned Kinross in the October 18, 2023 edition of the Daily Stock Report.
Clawing back some summer slippage, Manulife Financial (MFC.TO) has been working its way back up the rankings in the SIA S&P/TSX Composite Index Report since September. This week, it returned to the Green Favored Zone for the first time since February, joining five other insurance companies in the top tier. In the SIA S&P/TSX 60 Index Report, MFC.TO has jumped seven spots in the last week, moving up toward the top of the Yellow Neutral Zone in that report.
Although the sharp dropoff in US treasury yields has ignited a rally in equity markets in general, it hasn’t necessarily benefitted all individual stocks or sectors equally. Utilities, for example, which one would expect to do well in a falling interest rate environment, have been struggling lately.
Exelon (EXC) the largest utility in the US, dropped 10 spots in the SIA S&P 100 Index Report to 62nd place, dropping back into the Red Unfavored Zone.