Canadian stocks climbed 86 points today, but lost half of their
earlier gains having been up 170 points at five month highs at the
open - testing resistance levels with telecom stocks leading the
way. News that Verizon Communications Inc (
) is probably not entering the Canada market after all generated
tailwinds for telecom shares.
The Telecom sector gained more than 4%. Among individual stocks,
BCE (BCE.TO) was up near 4%, while both Rogers (RCI-B.TO) and Telus
(T.TO) were up around 7%.
Quebecor (QBR-B.TO) was up more than 3%.
But news that Congress may back U.S. President Obama in a
military strike on Syria cast a cloud over sentiment over much of
In economic news, the RBC Canadian Manufacturing Purchasing
Managers' index, a gauge of manufacturing business conditions,
edged up to 52.1 in August from 52.0 in July.
Right at the open Canadian stocks passed through resistance
levels at the recent August highs near 12,812. A close above this
level would likely have seen the index go on to test the May
intra-day highs near 12,889. Support is seen at the 10-day moving
average near 12,673.
The trend in the TSX is higher which is reflected by the 50-day
moving average crossing above the 200-day moving average which is
known in the industry as a "Golden Cross'.
Momentum is pointing to higher prices on the TSX with the MACD
(moving average convergence divergence index) printing in positive
territory with an upward trajectory. The MACD is a momentum
indicator that measures the difference between two moving averages
and compares that difference to a moving average of the difference
to determine the rate of change of prices.
Resverlogix Corp. (RVX.TO) was easily the most active stock up
40% at 95 cents but well off a day high $1.16 with 7.7 million
shares changing hands. The company this morning announced the Full
Analysis Set (
) data from 281 treated patients in its Phase 2b ASSURE clinical
trial evaluating RVX-208 using intravascular ultrasound (IVUS) in
high-risk cardiovascular patients.