Author: Geoff Pieroway

Despite recent market volatility, the BMO Japan ETF (ZJPN) has demonstrated resilience, rising 23 positions in just a week. Technical indicators show breakouts in its point-and-figure chart and an improvement in relative strength, reflecting its performance in the current market.

SIA’s methodology in dividend income investing focuses on relative strength first rather than yield. Using tools like the SIA Combined Canadian Dividend Report, advisors can assess stocks based on their overall performance, helping to avoid the risks of unsustainable high yields. For example, BCE’s weak performance in the report influences its overall dividend ranking, showing how relative strength affects dividend stock positioning. To enhance dividend strategies, consider exploring the full list of stocks in the report, where advisors can identify top performers with strong relative strength and efficient-market approved yields.

DocuSign is transforming agreement management with AI-driven solutions that unlock hidden value within corporate agreements. From a technical perspective, DOCU now shows strong relative strength and is positioned favorably within the SIA Russell 1000 Index, reflecting improved market positioning.

Pfizer’s stock has been a relative underperformer within the SIA reports, with a well-developed long-term Head and Shoulders pattern that many advisors may witness in real time. The chart reveals a steady decline following a significant surge, with the price now testing critical support near the neckline at $23.91. This pattern, combined with the stock’s consistent underperformance relative to its peers, makes this setup particularly notable for advisors tracking its movements on the SIA platform.

Relative strength plays a key role in portfolio management by helping avoid underperformers before significant declines occur, while enabling advisors to capitalize on outperformers. SIA Matrix Position charts for Walmart (WMT) show consistent relative outperformance, resulting in a 76.56% gain in 2024, while Target (TGT) continues to underperform, as indicated by its weak relative readings in the SIA S&P 100 Index Report. Target’s low rankings across multiple SIA reports, combined with resistance at key levels, highlight the importance of respecting underperformance in portfolio decisions.

Enerflex has emerged as a top performer in the SIA S&P TSX Small Cap Index Report, posting impressive returns of 44.31% over the past month, 69.55% for the past quarter, and 113.98% year-to-date, significantly outperforming the broader energy sector. The company’s SIA Rank of 99.6% highlights its strong technical position and supports its #1 ranking among 235 names in the report. Despite the broader energy sector’s underperformance, Enerflex continues to buck the trend, as evidenced by its perfect SMAX score of 10 out of 10.

Having alerted advisors earlier this year to GM’s move into the favored zone of the SIA S&P 100 Index Report, the stock has surged 68.96% year-to-date, significantly outperforming major benchmarks. However, GM now faces significant resistance at the $60 level, where long-term price pressures from previous highs in 2021 and 2022 may cause the stock to consolidate. Despite this resistance, GM remains highly ranked in the SIA reports, supported by a perfect SMAX score of 10/10, indicating strong potential for outperformance in the future, even though the automotive sector remains in the Unfavored zone.

DBS Bank Limited (DBS), the largest bank in Southeast Asia, plays a key role in the Singapore market, which has shown strong relative strength over the past year. As part of the SIA Favored Sector: Financial Services, DBS has also benefitted from a multi-year breakout in the Singapore market, evident in the iShares MSCI Singapore ETF (EWS) chart. With DBS’s recent breakout from $98.11 to $124.97, DBS Bank has moved into the SIA favored green zone of the SIA International ADR Index Report. Current support levels are at $117.25 and $110.49, with resistance at $132.04 and $142.92. DBS also holds a perfect SMAX score of 10/10, underscoring its outperformance against other asset classes.