The TSX gained 1.9% last week, its biggest weekly gain since Nov2016 , helping it move above its 200 day moving avg. (technically bullish) and within touching distance of the technical resistance at the ~15,500 mark. Strong momentum has made it technically overbought .
Advances were driven by Energy stocks (+4.8%), sector is outperforming QTD (+9.4%) . While Discretionary, Financials & Industrial stocks also gained +2%.
Gold stocks underperformed, with Staples and REITS also ending slightly in the red.
Gains were made on healthy volumes last week.
Oil +1.5%, offset somewhat by lower precious metals prices.
C$ weakened vs US$ , -1.1%; net short positioning vs US$ increased.
Poloz to give a closely watched speech on Wednesday following the unexpected rate hike earlier in Sept.
Economic data is a little lighter this week - CA GDP headlining on Friday, with payroll and industrial pricing data also due. U.S. GDP will also be released on Thursday and we will see data on housing, consumer and manufacturing as well. Yellen is due to speak on Tuesday AM.
The first half of September saw a sharp covering of shorts amongst the TSX 60 constituents , an avg. decrease of 20%.
Late 3Q17 has seen a distinctive shift from defensive (gold) to pro-cyclical positioning:
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