Futures this morning are negative and the DAX is marginally negative. This suggests a negative to flat open. Markets remain insipid and weak which is typical for late August. This environment is not ideal for swing trading but provides a good opportunity to build watch lists. We are in the last stretch of summer as Labour Day and back to school season approaches. September is seasonally one of the weakest months of the year in the markets, but often provides some good buying opportunities. Also, seasonal analysis has shown that the October to April time period tends to be the most bullish. Hopefully this tendency will continue for this year. We have however seen some major shifts in stock market cycles, so there are no guarantees. The credit crisis distorted the cycles for the real estate and financial services sectors.
The market bias indicators are neutral. The market condition scans continue to have a slightly positive bias, but energy is weak.
The Royal Bank (RY.TO) reported record profits and the Toronto Dominion Bank (TD.TO) reported a small drop in profit due to higher loan loss provisions and the National Bank (NA.TO) reported record profits, suggesting that the Canadian banks remain healthy.
| Index | Change | %Change | Level | Phase |
| TSX | -8.36 | -0.08% | 10912.17 | Bullish |
| DJIA | +4.23 | +0.04% | 9543.52 | Bullish |
| Nasdaq | +0.20 | +0.01% | 2024.43 | Bullish |
| SP 500 | +0.12 | +0.01% | 1028.12 | Bullish |
| Russell 2000 | +0.80 | +0.14% | 584.02 | Bullish |
| NYSE | -9.28 | -0.14% | 6687.94 | Bullish |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a positive bias
Energy: weak
Primary Trend: sideways
| Sector | Phase |
| Consumer Staples | Bullish |
| Healthcare | Bullish |
| Technology | Bullish |
| Utilities | Bullish |
| Energy | Bullish |
| Financials | Bullish |
| Industrials | Bullish |
| Materials | Bullish |
| Consumer Discretionary | Bullish |
Source: Telechart
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