St. Patrick’ s day is as good a day as any to review the TSX. Many banker types downtown and elsewhere pretend to be Irish on this day simple to have a good excuse to have one too many. For those that watched Yellen’ s complete presentation and Q&A yesterday, one too many might not be enough. Each time there is another reason why the Fed will not do what it promised to do the previous meeting and collectively we simple cannot get it through our heads that the Fed is not at all interested in either employment or inflation. It’s raison d’etre always was, and always will be, to help out the banking system, period.
So now that things are so bad that we cannot move forward with “normalizing” the funds rate, oil and gold shoot up which used to be very bad but is now very good. The TSX shoots up in sympathy despite some lingering doubts with regard to our erstwhile favorite stock, VRX. The banks, at least TD and RY have or are about to make new highs so where are we??
Short-term we are completing a wedge, today, to be precise. There is no more room! We have done 2000 points in an equal number of months, about as good as it gets. At this very point overlap might occur depending on whether or not you use intra-day or closing prices, essentially this should not go any higher (there is an exception but we will not go into that). We are above the 50% and just below the 62% retracement levels, close to the wave 4 of previous degree level and both the RSI and MACD are ready to turn.
As an aside, for those that care, I must point out that the bear market in Canada started very close to the date predicted by Martin Armstrong, that is the year 2015.75 or October 1, 2015. Apart from his predictions, the story of his involvement with the Republic Bank of NY and the Safra family of Monaco, is fascinating and very real to me.
The TSX is not alone at being at a critical or interesting point. The Dow Industrials as well as the Transports , among many others including light crude oil and gold, are all approaching or at a major trend line;