Markets Lack Energy; Following Seasonal Tendency

Markets remained insipid yesterday, with the US Exchanges moving in a tight range. Rumours that China’s recovery may not be as quick as initially expected added fuel to the selling of energy and mining stocks, which negatively impacted the TSX. Agriculture stocks also suffered substantially yesterday, with the Saskatchewan Potash Corporation (POT, POT.TO) being one of the biggest draggers on the Canadian Exchange. A stock to watch today is Research in Motion (RIMM, RIM.TO) will be reporting earnings after market close today. The expectation is 94 cents a share, with a whisper number of 95 cents a share. This represents a 12% growth rate, and this is a stock that has a tendency to gap both up and down. It will be interesting to see how the stock reacts after market and Friday morning.

The Canadian inflation rate fell to 0.1% in May, while core prices rose 2% year over year. The Canadian CPI rose .7% in May over April. The World Bank has boosted China’s GDP growth to 7% in 2009. While jobless claims continue to be high in the United States, they are starting to lessen, which suggests that job losses are slowing.

Futures this morning are marginally positive while the DAX is negative, indicating a neutral open. The market bias indicators continue to show a statistical bias for a bounce. The market condition scans continue to show a weak market lacking energy, which could continue to slide or slip sideways, with no conviction in either direction.

Index	Change	%Change	Level	Phase
TSX	-241.29	-2.34%	10066.11	Bullish
DJIA	-7.49	-0.09%	8497.18	Recovery
Nasdaq	+11.88	+0.66%	1808.06	Bullish
SP 500	-1.26	-0.14%	910.71	Accumulation
Russell 2000	+3.29	+0.65%	507.03	Accumulation
NYSE	-22.21	-0.38%	5864.55	Accumulation

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

Primary Trend: sideways

Sector	Phase
Consumer Staples	Recovery
Healthcare	Recovery
Technology	Bullish
Utilities	Recovery
Energy	Accumulation
Financials	Recovery
Industrials	Recovery
Materials	Recovery
Consumer Discretionary	Recovery

Source: Telechart