Since peaking back in April near $180.00, accumulation in Canadian National Railway (CNR.TO) shares has shifted from accumulation to distribution. A new downtrend of lower highs has emerged and two weeks ago, the shares completed a bearish Double Bottom pattern in a jump in volume, signaling an increase in selling pressure.
Magna International (MG.TO) has been trending downward since peaking back in May of 2021, but in recent weeks, distribution has intensified as former support levels near $70.00 and then $60.00 have failed while volumes have increased, a sign of increasing selling pressure.
Moderna (MRNA) spent most of 2023 under distribution, then a six-month period from November to May under accumulation. Last month, the shares peaked and started to fall back in what looked like a normal correction. It now appears that the recent uptrend is over and a new downtrend has started.
Canadian engineering stocks started the year off strong but recently stalled out for a few weeks. Unlike some of its competitors, which saw their relative strength weaken considerably, AtkinsRéalis* (ATRL.TO) remained highly ranked through this period, staying in the upper half of the Green Favored Zone in the SIA S&P/TSX 60 Index Report, while its SMAX score remained above 7.
ATRL.TO has consistently been in the Green Favored Zone of the SIA S&P 60 Index Report since March of 2023. Over that time it has gained 93.5%, while the S&P/TSX Composite Index has climbed 4.5%.
CargoJet Inc. (CJT.TO) returned to the Green Favored Zone in the SIA S&P/TSX Composite Index Report yesterday for the first time since October of 2020. Cargojet shares have moved up 75 spots in the last week, including a rise of 11 positions yesterday leaving the red zone and quickly driving up through the yellow zone and in doing so prices have broken out to the upside, confirming renewed accumulation and the start of a new uptrend.
A significant relative strength event happened yesterday when the iShares S&P 100 Index ETF (OEF) climbed up into the Green Favored Zone of the SIA S&P 100 Index Report by moving up two spots to 26th place. This is the highest rank the Index ETF has achieved, topping previous peaks at 27, the top of the yellow zone. OEX reaching the Green Favored Zone means that 75% of the stocks in the SIA S&P 100 Index Report are losing in head to head battles with the Index.
Waste management company GFL Environmental (GFL.TO) has reversed a downtrend this month. After spending much of this year drifting downward within the SIA S&P/TSX Composite Index Report, GFL.TO has popped back up into the Green Favored Zone for the first time since March, up from the red zone.
ZFN.TO ETF units are up 22.6% Year to Date, compared with a gain of 13.92% for the S&P 500 Index and a gain of 3.53% for the S&P/TSX Composite Index so far in 2024.
At the end of May, the largest weighted sectors within the fund were Information Technology, Industrials, Consumer Discretionary and Energy.
Today’s featured holding, Broadcom* Ltd. (AVGO) has been consistently held in the fund since January of 2023. It has been in the news this week around the announcements of quarterly earnings and a 10 for 1 stock split.
Yesterday Oracle (ORCL) shares staged a major breakout to a new high as it punched through $125.00 and rallied toward $140.00 together with a jump in volume, indicating renewed interest and the start of a new advance.
Apple (AAPL) shares have staged a classic breakout pattern over the last few weeks. From August through May, Apple trended sideways in a range between $165.00 and $195.00 consolidating previous gains. Last month, the shares broke down through the bottom of this range by one row on the Point & Figure chart in what looks like a shakeout. Then AAPL shares reversed sharply upward to complete a rare and textbook Bear Trap pattern.
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