Author: Geoff Pieroway

Royal Bank (RY.TO) has recently surged into the Favored Green Zone of the SIA S&P/TSX 60 Index Report, breaking through the $150 resistance level to reach $164.08. This significant turnaround, marked by a 41.15% gain over the past year, reflects a broader market shift favoring traditional banks amid expectations of lower interest rates. The Point and Figure chart indicates strong support at $133 and $149.78, with resistance at $182.58 and $201.58, while the bank’s SMAX score has improved to a perfect 10 out of 10.

Stantec Inc, which has been a solid contributor to the SIA 5-Stock Equity Income model’s returns, is now being replaced due to its recent drop to the Neutral Yellow Zone and a declining SMAX score. Although it provided steady performance with a 60% return since purchase, its recent underperformance suggests a shift is necessary. We are replacing Stantec with Agnico Eagle Mines, ranked #3 in the SIA Combined Dividend Index Report, to enhance the overall portfolio’s returns and maintain its high performance.

Canadian Imperial Bank of Commerce (CM.TO) has recently moved into the Favored Green Zone of the SIA S&P/TSX 60, reflecting a strong 28.16% YTD gain and a perfect SMAX score of 10. The stock has broken out of a two-year consolidation range, with support levels at $57, $66.54, and $73.47, and resistance at $89.56 and $100.86. It is noteworthy that major Canadian banks had been absent from the SIA S&P/TSX 60 Index Report for some time, so CM.TO’s inclusion is significant, aligning with earlier movements observed in other banking names in the SIA S&P 100 Index Report.

Bank of Nova Scotia (BNS) continues to languish in the Unfavored Red Zone of the SIA S&P/TSX 60 Index, where it has been for 804 days. Despite a 10.37% year-to-date rally, its 3-year return is only 1.75% and its 5-year return is 5.43%. Especially on a relative basis, compared to National Bank of Canada (NA.TO), which is in the Favored Green Zone with a YTD return of 24.99%, BNS’s performance highlights a significant disparity.

In today’s report, we highlight GE Aerospace’s impressive performance, with its share price surging 92.50% over the past year. Currently holding the #2 position in the Favored Green Zone of the SIA S&P 100 Index Report and boasting an SMAX score of 9 out of 10, GE Aerospace is well-positioned for another breakout. This update offers a detailed look at GE’s recent gains, its significant impact on portfolio performance, and its potential for continued growth.

Dollarama, a top pick in the SIACharts Hypothetical Canadian 5-Stock Model, has surged 67% since being purchased at $80.67. Its continued presence in the Favored Green Zone of the SIA S&P TSX 60 Index Report underscores its exceptional performance. The model itself has delivered a YTD return of 36.58%, significantly outperforming the TSX 60’s 14.48%, highlighting Dollarama’s critical role in driving these returns.

Brookfield Corporation (BN.TO) is showing strong recovery, with its shares climbing to new highs and a year-to-date return of 25.97%, significantly outperforming the Equal Weight S&P/TSX 60 Index Fund. The stock is breaking out of a consolidation phase, setting up for a potential catapult formation on the Point and Figure chart, which suggests a sustained price advance. As it approaches key resistance levels, BN.TO is poised for further gains, supported by a perfect SMAX score and strong relative strength.

Nvidia Corp. has consistently led the market, maintaining its top position despite fluctuations following its stock split in May. The stock faced some volatility during the summer but has demonstrated notable resilience. As we approach the pivotal binary earnings event, Nvidia’s enduring strength and performance remain crucial for investors navigating this key moment.