SYNOPSIS
The major market indexes have improved again last week, except for our two Canadian small cap measures… S&P/TSX Small Cap Index and S&P/TSX Venture Index. Nasdaq gained 2.2% last week. That increased it’s trend value enough to bring it to the top of our trend chart. S&P/TSX Composite Index and S&P 500 are in #2 and #3 positions.
ProfiTrend Portfolio… Our PTP annualized growth rate rose to 54% from 19% the previous week. That compares with 3.7% for the S&P 500 and 10.5% for the S&P/TSX Composite Index.
Seasonality… Although we’ve discussed the more common calendar effects for August over the past few weeks, we have now included Thackray’s monthly videos for August.
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Topic of the Week… Topic of the Week… Yellow Flag: More on the Tenuous State of Current Market Conditions
Last week we suggested that we might be in for “rough trading ahead!”. The gist of the argument was that for some large databases of stocks that we maintain, the majority of constituents have shown negative trends. We normally don’t want to spend a lot of time finding a few exceptional situations where individual stocks “buck the trend”, because normally they don’t fight the predominant trend for long.
This week, we find that there has been some improvement in that situation, but other measures of the broader market still suggest that caution is indicated. More on that below.