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00:00:00Good morning and welcome to the Canadian edition of Stock Market Timing Television for Tuesday, January 17, 2023.
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00:00:09With the US markets closed on Monday for the Martin Luther King holiday, the Canadian market was very thinly traded.
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00:00:16In the pre market this morning we have stock index futures trading slightly below fair value. Commodities
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00:00:23are mixed with crude oil and natural gas trading higher, while gold is trading down $10.
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00:00:30Looking at the Canadian stock market by market cap
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00:00:33.
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00:00:34We have the TSX Composite trading up towards the late November highs. No early warning signals so far.
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00:00:42The TSX 60 looks very similar.
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00:00:46And then looking at the mid-cap stocks, we've already broken out above the late November highs.
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00:00:51That is also true for the small cap stocks.
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00:00:55And even the microcap sector has already broken out above the recent highs. The gains
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00:01:01for Small, Mid and Micro cap stocks are mostly from gains in the mining sector.
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00:01:06Moving back to look at the TSX 60. All looks clear at the moment. The
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00:01:12first sign that something new is happening will be a close below last Friday's low.
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00:01:18If we can keep moving higher from here, our next target on both the daily and weekly charts is 1250.
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00:01:25In percentage terms, marijuana stocks have been the big winner over the last week.
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00:01:30Aurora Cannabis
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00:01:32Tilray
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00:01:34And Canopy Growth.
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00:01:36Of course the cannabis stocks have very little impact on the overall Canadian market.
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00:01:41The Canadian Financials Sector makes up approximately 31.7% of the Canadian stock market.
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00:01:48And right now the financials and the banking sector are doing okay.
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00:01:53A couple of current examples. Fairfax Financial put in a new closing high on Monday.
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00:02:00CI Financial also put in a new high.
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00:02:03One stock that the market will be watching closely, is the Royal Bank, which is now trading back
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00:02:09at the November highs. Is this the end, or can we break out and make higher highs?
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00:02:15Let's finish off this morning's presentation looking at the commodity sectors.
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00:02:20Both base metals and precious metals stocks are extremely overbought at
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00:02:24the moment and may need to take a breather this week.
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00:02:27At the same time, energy stocks have been oversold and are starting to make a comeback.
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00:02:33If the market pulls back here we may not see money leave
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00:02:36the commodity sector, but just move from the metals to the liquids.
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00:02:40That's all we wanted to talk about this morning. It's still dark out there and stock
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00:02:45index futures are still trading below fair value. So so far it looks like we are
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00:02:50going to see a little bit of selling at the opening on Tuesday morning.
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00:02:55Enjoy the rest your day, the next time you'll hear from us will be on Wednesday morning.