ERO Copper (ERO.TO) has dropped from over $32 to around $19, now in the SIA Unfavored zone with a low SMAX score of 0, signaling near-term weakness. The copper sector is facing challenges, with several leaders, including ERO.TO and III.TO, showing declines, and YTD returns for the subsector under pressure. Hudbay Minerals (HBM.TO) continues to lead in the SIA Copper Matrix with strong YTD gains, though it faces resistance at $12.95 and support at $11.96 to $9.14.
Shopify Inc. (SHOP.TO) has emerged as a top performer in the Canadian market, with a 59.14% YTD return, nearly recovering losses from the 2022 pullback. This rally has propelled SHOP.TO to the #1 position on the SIA S&P/TSX 60 Index, driven in part by strong performance in the SIA Computer Software sector. As shares approach key resistance levels, SIA technical analysis, including point-and-figure charts and relative strength tools, offers insight into potential price movements. With significant resistance ahead and a perfect SMAX score, the challenge of overcoming these levels is being closely watched.
The SIA Aerospace and Defence sector showed strong performance in 2024, driven by geopolitical tensions, but signs of slowing momentum are now emerging, with key stocks like Leidos Holdings (LDOS) facing resistance and negative quarterly performance. While speculation around factors like potential geopolitical de-escalation may exist, at SIA, the focus remains on rules-based analysis, and the relative performance of the sector is raising red flags. Leidos, in particular, is showing signs of weakness, with its recent pullback from resistance and a shift to the ‘Unfavored’ zone in SIA reports.
Newell Brands Inc. (NWL), with a market capitalization of $4.81 billion, has experienced a remarkable turnaround, posting a 65.47% rally in the past quarter. Once positioned in the Unfavored zone of the SIA Russell 1000 Index Report, the stock has surged 151 places in the past month, reaching position #14. This resurgence underscores the company’s strengthening momentum and technical strength, reflected in its perfect SMAX score and strong performance relative to its peers and broader market.
Alcoa, once an underperformer, is now showing improved relative strength and has entered the “Favored” zone in the SIA Russell 1000 report. Its shares have broken through key resistance levels and are supported by strong technical indicators, with an SMAX score of 10, indicating near-term outperformance.
Core & Main (CNM), a leading distributor of water, wastewater, storm drainage, and fire protection products, has seen notable performance shifts in 2024. After a period of underperformance, the company’s shares have surged following strong third-quarter results, with impressive returns of 14.30% for the month and 41.55% for the quarter. CNM is now ranked in the Favored Zone across SIA reports, with an overall SIA rank of 91.7%, reflecting its strong market position.
In today’s SIA Daily Stock Report, we examine the relative strength of TD and CIBC. TD has experienced ongoing underperformance, moving down the SIA relative strength ranks since January 2022, making it less favorable for investment candidacy based on SIA’s methodology. Its shares have struggled from a relative strength perspective, which is always our primary focus. In contrast, CIBC has shown strong upward momentum, moving through key resistance levels and currently sitting in the SIA Favored zone of the SIA S&P/TSX 60 Index Report. The stock’s performance has been exceptional, with a solid SMAX score, indicating stronger relative strength compared to its peers.
The SIA International Equity ETF Report has revealed notable relative strength movements in China and Hong Kong, despite remaining in the neutral zone. While geopolitical tensions rise, particularly with Trump’s threats on BRICS nations, China’s performance continues to climb, with Kingsoft Cloud Holdings (KC) standing out as a strong performer in the SIA Hypothetical Model. KC’s technical rebound from a significant decline and its perfect SMAX score of 10 highlight its continued strength, making it an intriguing stock for investors looking at China-focused opportunities.
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.
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