Category: Daily Stock Report

The SIA Hypothetical 5 Mutual Fund Model exemplifies the power of relative strength in fund selection, leveraging machine learning to identify top performers from the SIA Mutual Fund library. The model’s focus on the top five relative strength sectors ensures that only the leading funds within these sectors are included. This approach has driven exceptional performance, with the model achieving a Compound Annual Growth Rate (CAGR) of 13.21% and an Alpha of 2.81 since inception. By continuously rebalancing to favor funds with superior relative strength, the model effectively navigates market fluctuations and consistently outperforms its benchmark.

AECON Group Inc. (ARE.TO) has recently been added to the SIA Hypothetical Equity Income model portfolios, with its stock showing renewed strength and fresh highs. After years of underperformance, SIA’s relative strength analysis indicates a new growth phase is underway, positioning AECON favorably against its peers.

GoEasy (GSY.TO) has recently shown a decline in relative strength (RS), leading to its removal from the SIA Hypothetical CAD Equity Income 5-Stock Model. The model previously enjoyed a substantial 235% gain from GoEasy shares; however, this latest bout resulted in only a modest gain before its RS deteriorated. Over the past week, GoEasy’s position fell into the Neutral Yellow Zone and toggled to a RED SMAX, prompting this adjustment. The proceeds from this sale will now be redirected to AECON Group Inc. (ARE.TO), which is the highest-ranked stock in the SIA Combined Dividend Report. This adjustment reflects the model’s commitment to maintaining strong performance and effective risk management.

Procter & Gamble, a leader in consumer goods with products like Tide and Pampers, is experiencing renewed attention as it emerges from a long period of underperformance. The stock has recently entered the Favored Green Zone and shows strong momentum on both the Candlestick and 1% Point and Figure Charts. With solid support at $154.14 and resistance at $184.38 and $199.66, Procter & Gamble boasts an SMAX score of 9 out of 10.

Today’s report on Dollar Tree serves as a valuable case study, offering insights that could mirror future trends for our current favorite, Dollarama. We commend both our new students and seasoned practitioners for their dedication to mastering the SIA Relative Strength Methodology, which is crucial for navigating market challenges. For further guidance on using the SIA Market Intelligence Platform to optimize your portfolio, please contact your SIA Agents.

With AVGO sold, the SIA Hypothetical NASDAQ 5-Stock Model is adding Intuitive Surgical, Inc. (ISRG) to the lineup. ISRG’s strong position at #2 in the SIA matrix reflects its top-tier performance and high relative strength, making it a perfect fit for our rules-based approach that focuses on the best SIA-ranked stocks. This update supports this SIA model’s impressive performance, with a 29.21% CAGR compared to the NASDAQ Composite Index’s 15.60%.

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.