The TSX Venture index looks like a short setup, much like the US small caps did a few weeks ago before they broke down. CDNX lost support, bounced to test the breakdown and has held below what is now resistance. It is also near its lows in relation to the TSX index, which we have shown over time to track inflation expectations and by extension a positive or negative backdrop for speculative inflation trades.
This is negative and if I could figure out an effective way to short it I probably would.
