Category: Equity Leaders Weekly

Charles Dow, the creator of Point and Figure Charting, would undoubtedly be proud of how SIA Charts has advanced his methods. By leveraging cutting-edge computing and relative strength analysis, SIA Charts enhances Dow’s focus on price action, offering investors real-time, data-driven insights. This modern approach stays true to Dow’s principles while embracing new technologies, providing deeper, more precise market analysis. In this report, we examine the current state of the DJIA, identifying key resistance levels, evaluating the internal strength of its components, and assessing the influence of its highest-priced stocks. In this report, we examine the current state of the DJIA, identifying key resistance levels, evaluating the internal strength of its components, and assessing the influence of its highest-priced stocks. Our findings highlight important price levels, leaders and laggards, and potential future movements for 2025.

China is making significant strides in AI and semiconductor technology, with startups like DeepSeek and companies like Hygon advancing their capabilities. This growing self-sufficiency is creating ripple effects in the global tech landscape. In this analysis, we examine the performance of the Invesco China Technology ETF (CQQQ) alongside the Magnificent Seven stocks to explore potential market shifts in 2025.

This week, SIA’s analysis of the Equal Weight Indices (EQIs) highlighted significant gains and declines across various sectors. The SIA Energy Equal Weight Index (EWI) emerged as a strong performer, climbing 7 positions, signaling growing strength. The SIA Health Services EWI also gained 5 positions, though both remain in the SIA Unfavored zones. In contrast, the SIA Computer Hardware EWI was the largest decliner, falling 9 positions and moving into the SIA Neutral zone, signaling a shift in risk. Other decliners include the SIA Automotive and SIA Tobacco EWIs, showing continued weakness in these sectors.

The Canadian stock market has shown mixed performance in early 2025, with the S&P/TSX 60 large-cap index leading the way, while smaller-cap stocks saw modest gains. The SIA S&P/TSX Index Report highlights Kinross Gold and Agnico Eagle Mines as top performers, while Barrick Gold lags behind, reflecting significant underperformance over the past three months.

In today’s Equity Leaders Weekly, the SIA platform highlights early relative strength moves, including gains in Central Europe, Germany, and Poland ETFs. Natural gas prices have surged 53.37% over the past six months, with the NATGAS contract showing strong relative strength and a perfect SMAX score of 10/10. Meanwhile, the iShares MSCI Poland ETF (EPOL) and other Central European ETFs also display bullish signs. Could these trends signal improving market conditions in Europe and, potentially, peace in Ukraine?

The market shows a mixed performance with Energy leading gains, while Real Estate and Technology face slight declines. Both the S&P 500 and NASDAQ are testing key support and resistance levels, signaling potential for market movement depending on future breaks or reversals. Volatility remains in focus, with recent fluctuations reflecting potential market adjustments.

In 2024, the S&P 500 gained 23.31%, slightly behind 2023’s performance, while the S&P 100 and NASDAQ saw returns of 29.25% and 28.64%, respectively. Sector performance favored technology and financial services, with SIA Telecommunications and Computer Software posting significant gains. Heading into 2025, sectors like Computer Software and Aerospace show strong relative strength, while Metals and Mining, along with Energy, remain Unfavored.

As 2024 comes to a close, this analysis reviews the performance of key benchmarks, including the S&P/TSX Composite, Russell 2000, and other major indexes. Using SIA’s point-and-figure prowess, the document highlights significant trading ranges, support and resistance levels, and market trends, providing insights for advisors as they evaluate the market’s outlook for the year ahead.

2024 has been a strong year for equity markets, with major indices like the S&P 500 and NASDAQ showing significant gains, while smaller cap stocks have caught up later in the year. Sector performance has been equally notable, with areas such as telecommunications and financial services delivering impressive returns, especially in the final quarter. Globally, South American markets have stood out, while China, supported by fiscal and monetary interventions, made a strong comeback in the latter part of the year, though India’s performance remained relatively subdued compared to other regions.

In light of recent geopolitical developments, including Trump’s threats of tariffs on BRICS nations and South Korea’s market instability following the declaration and lifting of martial law, the global investment landscape remains volatile. The SIA Heatmap analysis highlights Argentina’s strong performance, while South Korea’s market continues to struggle with poor relative strength. As tensions persist, the SIA platform provides valuable tools for identifying both risks and opportunities across international markets, with specific attention needed on regions such as China and Singapore.