Insights: Slipping greenback stokes Canadian stock gains

Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Club
$299/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads
JOIN THE CLUB

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

June 24th, 2019

The positive setup for Canadian stocks we observed in last week's letter remains in place as we head towards quarter end. The Fed's dovish policy statement on Wednesday helped shake out some of the bullish positioning in the US dollar which helped boost the prospects for commodities. The mid-cap-oriented INK Canadian Insider (CIN) Index advanced 2.3%, ahead of most major indices including S&P/TSX 60 and the S&P 500.

The move against US blue chips is even more impressive in light of the Canadian dollar's strong week, gaining more than 1 US cent last week. With Canadian and American inflation diverging in favour of Canada, talk of divergent interest rate policies is now tilting back in favour of the loonie.

In addition, Canada's long-suffering oil patch received a boost last week with the carbon-shy Federal government approving the Trans Mountain pipeline expansion. While shovels are not yet in the ground, at least the approval was a small step in the right direction. Meanwhile, we are beginning to have more confidence that Canadian Energy sector insiders are signalling a turn of fortunes for the group. Our Energy Indicator appears to have peaked which signals peak insider buying. Such peaks often coincide with share price lows. At this point, it appears the sector has formed a base this month to take a run at its 200-day moving average. Looking further ahead, we will have to see if there is enough momentum for the group to enter a long-term uptrend.

While stocks still face another test at the end of the month as China and the United States meet to talk tariffs, short of a major breakdown, Canadian stocks could surprise. If markets respond positively to the Trump-Xi summit planned for the G20 meeting in Osaka at the end of the month, Canada should benefit from continued confidence in the US economy. If markets start July off on an edgy footing based on the outlook for China-US trade, Fed chatter should remain dovish, helping to suppress potential US dollar strength.

Last week, resource and defence stocks led the INK CIN Index. Meanwhile, the laggards were Gran Tierra Energy, which dropped -7.6% on June 19th news of operational issues impacting production, along with consumer stocks Alimentation Couche-Tard and Dorel Industries.


Top 3 Gainers Last Week

Company NameStock Symbol1 Week %
Yangarra ResourcesYGR18.0
Ero CopperERO12.7
Heroux-DevtekHRX11.1

Top 3 Losers Last Week

Company NameStock Symbol1 Week %
Gran Tierra EnergyGTE-7.6
Alimentation Couche-TardATD.B-3.7
Dorel IndustriesDII.B-3.4

Returns are as of the last trading day of the previous week.

Featured Broadcast

Insider of the Week

Evertz Tech's Magarelli & DeBruin

This week's insider of the week is a duo from Evertz Technologies (ET). CEO Romolo Magarelli and  Executive Chairman Douglas DeBruin each hold 24,167,000 shares, representing 31.57% of all shares outstanding apiece.

Importantly, the two have led the television and streaming media-focused technology firm to some impressive growth over the past year. We featured the stock in our June 24th morning report. We have produced a short streaming video of own summarizing the report, watch it via YouTube here. The full report is available to Canadian Insider Club members and INK Research subscribers. If you are not a Club member or INK Research subscriber, consider signing up so that you don't miss out on insider opportunities.

INK Canadian Insider Index

1 Year Total Return Performance


Historical Performance

Annualized Total Return as of June 24, 2019 04:49 pm
1 Year -12.64%
3 Years 4.41%
5 Years 1.83%
10 Years 10.75%

5 Year Total Return Performance


The INK Canadian Insider Index is used by the Horizons Cdn Insider Index ETF (HII), a 2017 and 2018 Fundata Fundgrade A+ ® award winner.

To learn more about th ETF please visit:
https://www.horizonsetfs.com/ETF/HII

To learn more about the Index please visit
https://index.inkresearch.com
To start receiving a PDF version of this newsletter by email select it in your alert settings. If you do not have an account, join us here.

Comment On!

140
Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to CanadianInsider.com (via Easy Blurb).