After hitting record highs in recent days, the TSX was down
close to 3 points on Friday, despite recent buying of mum and dad
investor favourite Blackberry (BB.TO, BBRY) following the release
of a positive report on the telco. Most sectors were up, but -
perhaps, ironically, given Blackberry's gains - it was the Telecom
sector that was under the most significant pressure.
The S&P/TSX capped Telecom index - which has enjoyed some
strong buying spells of its own in recent months - was down 0.6%
today, and lower by close to 1.5% for the week. On Friday, the
Telecom index sliced through support levels near the 50-day moving
average at 122.22, and is poised to test target support near the
200-day moving average at 118.44. This comes despite the broader
index hitting all-time highs on both Wednesday and Thursday in the
wake of the U.S. Federal Reserve's dovish statement.
Momentum on the sector is negative with the MACD (moving average
convergence divergence) index printing at its lowest level in the
past 6-month, and the negative trajectory on the MACD points to
lower prices for the index.
Of commodities, gold futures rose slightly Friday, for a weekly
gain of 3.3%, on some safe haven buying given geopolitical concerns
about Iraq and Ukraine, and the prospect of low U.S. interest rates
for a while longer.
Energy producers were up with
. Copper advanced a sixth day, for its longest rally in six
Adding to the positive sentiment, Canada inflation Friday topped
the Bank of Canada's 2% target for the first time since 2012 and
retail sales also came in better than expected.
Among individual stocks, dual listed Blackberry (BBRY, BB.TO)
was up another 6.81% on the TSX Friday afternoon - adding to the
gains made yesterday following its Q1 result - with most of today's
gains and an increase in trading volumes in the stock appearing to
come following the release of bullish report by Citron Research, a
known and typical short-seller that has reiterated its bullishness
on the embattled telco.
According to BNN TV, Citron back in January said Blackberry was
a US$15 stock, but today says it is a US$20 stock. Citron
reportedly described it as the biggest teck opportunity of the year
- based on the potential of Blackberry's 'Internet of Things'
program. A Blackberry blog in May said this is where the customer
is at the center of a connected 'Internet of Things' experience
that offers tools and resources to securely connect millions of
devices and distill information for real-time decisions.
It should be noted, BNN spoke to the man behind Citron and he is
an owner of Blackberry stock.
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