From the desk of Tom Bruni @BruniCharting

New Mystery Chart!

For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it's a custom index or inverted, who knows!

We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.

You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?

From the desk of Tom Bruni @BruniCharting

The TSX Composite Index is attempting to hold above its 2018 highs after breaking out earlier this month.

In early August we wrote a Canada Update for Premium Members outlining ideas (and another post 2 weeks ago), many of which are working well, however, we're following up on this post today with a stock on our watchlist that's become actionable.

From the desk of Tom Bruni @BruniCharting

This post is a follow-up to today's Chart of The Week, so if you've not read that I'd recommend doing so before continuing with this deep dive.

From the desk of Tom Bruni @BruniCharting

Technology is the largest sector of the market from an indexing perspective, but it's also pervasive because it finds its ways into other sectors/industries and often plays a big role.

With that as our backdrop, it's clear why Technology's relative performance is an important barometer for the health of the market...and it's been quite good since breaking out to new highs in 2016.

So can it continue, or are we due for some TECHnical difficulties in the weeks and months ahead?

The mean reversion we outlined a few weeks ago has been playing out, but now the major indices are running into sellers at very logical levels.

With that said, one area looks particularly vulnerable at current levels, Pharma.

Tuesday's Mystery Chart received similar responses, with most people looking to get long if prices were able to hold above support.

Now, let's look at the chart and levels.

From the desk of Tom Bruni @BruniCharting

Tuesday's Mystery Chart is one of my favorite charts right now, so thank you all for your feedback and participation.

It seems almost everyone was on the same page here, getting involved in some way, shape, or form on the long side.

With that as our backdrop, let's get into it.

From the desk of Tom Bruni @BruniCharting

We look at a lot of charts every week, so it's not surprising that we often come across charts that look "too simple."

A setup we've seen thousands of times or a trend that's reaffirmed itself time and time again, yet I always find myself being skeptical of a chart that looks textbook in nature.

Today I want to take a look at one of those charts.

From the desk of Tom Bruni @BruniCharting

New Mystery Chart!

For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it's a custom index or inverted, who knows!

We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.

You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?

We continue to see prices in the major indices bounce as breadth and momentum divergences remain intact, however, many of the trades we've outlined have moved away from their optimal reward/risk level.

Today we're outlining stocks we can be buying today, or in the near-term.

New Mystery Chart!

For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it's a custom index or inverted, who knows!

We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.

You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?

From the desk of Tom Bruni @BruniCharting

The TSX Composite is peaking its head out above resistance and into the fresh air of all-time highs, but can the recent strength continue?

Today we're looking for answers in two sectors that matter, Financials and Energy, which account for roughly 50% of the index's weighting.

First off, here's the TSX Composite Index breaking to new all-time highs, slightly exceeding its former highs of 16,650. Momentum has yet to get overbought, but if prices are above that level then we need to be erring on the long side with an upside objective of 18,300 over the next 6-12 months.

Click on chart to enlarge view.