Nortel Networks has announced that it will not be emerging from bankruptcy but will be sold off piece by piece. This highlights the risk of stock investing as there is always a possibility that a company’s value on the stock exchange can go to zero. The company will be de-listed from the TSX. It is for this reason, that it is important to not only understand a company fundamentally, but also to look at what price is doing from a technical perspective. While it may seem counterintuitive, it is less risky to buy stocks that are going up in price, showing higher highs and higher lows. Also, fundamentally, if a company if a company’s earnings and revenues do not seem to make sense, caution is warrented. Gold, silver and oil are continuing to pullback. The Canadian Dollar continues to show high volatility, down over a penny this morning.
The World Bank has lowered their global growth forecast for 2009 to -2.9%.
Futures this morning are negative along with the DAX, indicating a down open. The market condition scans are showing a slight bias to the upside but energy remains weak, suggesting that there may not be good follow through. The market bias indicators are showing a few sell signals.
| Index | Change | %Change | Level | Phase |
| TSX | +166.45 | +1.64% | 10287.95 | Bullish |
| DJIA | -15.87 | -0.19% | 8539.73 | Recovery |
| Nasdaq | +19.75 | +1.09% | 1827.47 | Bullish |
| SP 500 | +2.86 | +0.31% | 921.23 | Accumulation |
| Russell 2000 | +3.24 | +0.64% | 512.72 | Accumulation |
| NYSE | +28.04 | +0.47% | 5934.24 | 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
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