TSX-V has been a negative divergence to the inflation trades, but…
You see, da ‘V’ has a bunch of cow pastures and barren holes along with a few nice prospects up there to the great white north. It has been negatively diverging the inflation trades for over a year now, but was an important indicator that we used in 2020 to confirm the inflation trades.
What do you suppose the divergence could mean? The obvious, that’s it’s a bad omen? Or the possibly less obvious, that there could be an ‘ending stages’ situation with some hysterical profit making opportunities? This is a speculative playground and commodity cycles often end in a speculative frenzy.
Eh? CDNX is an important global market as an indicator unto itself, and it is creeping the SMA 50 today.
I’ve left comments open since making that Podcast post last week (thank you so much for your responses, BTW, they were helpful to Scott and myself). So if you’d like to weigh on da V and its potential to indicate a coming late stage bubble (or whatever else you may read into it) feel free to do so. As yet though, it’s very tentative.
Here is the big picture view.
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed market updates and NFTRH+ dynamic updates and chart/trade setup ideas. Subscribe by PayPal or credit card using a button on the right sidebar (if using a mobile device you may need to scroll down) or see other options. Keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.