The Canadian Vanguard Stock Market Report At Close – Monday, February 26, 2024
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Data Driven Market Analysis And Report For Tomorrow’s Winning Trades
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The Toronto Market
The TSX gave back today pretty well all the points gained at Friday’s session. The index declined -88.84 points or -0.41% to close today’s market session at 21,324.31. The index is getting in to a range bound. This should not be a cause for concern, should possibly be seen as good as long as the duration is relatively short and the index remains sitting comfortably above the 21,000 points level during the period. The TSX, unlike the US indexes does not have a large number of stocks with very extended price.
The market session today, was negative but in a sense it was a day to buy that stock that you have been keeping an eye on which today suddenly decline to within your buy range. One certainly must be cautious buying or just totally avoid buying those stocks where price is quite extended.
Only three sectors closed with gains today: Durable Consumer Goods & Services gained 0.23%; Industrials gained 0.20% and Energy gained 0.06%. The price of Oil looks like it is staying put in the seventy five to seventy seven US dollar a barrel price range. That helped the energy sector to eke out a gain today. Technology, down -0.09% was the best performer of today’s decliners. Healthcare was down -0.58%; Financials declined -0.59% and basic Materials declined -0.93% while Utilities declined -1.59%
Computer Hardware, up an unbelievable 72.89%, was the top industry performer on the TSX today. Insurance – Multiline gained a more usual 4.8%; Coal gained 2.96%; Aluminum gained 2.78% and Electrical Components & Equipment was up 2.73% today. Textiles & Leather Goods, the leading industry on Friday declined -10.71% today.
Today’s Statistics: The declined issues (decliners) outnumbered the gaining issues (advancers) today. The ratio of advancers to decliners was 1.16-to-1.0 or in practical terms, for every eleven advancers there were five decliners. In real numbers, 991 decliners to 503 advancers to with 116 Unchanged. The total volume of shares traded for gaining stocks was 104,385,884 or 30.1%; the total volume for declined stocks was 232,882,593 or 67.2% and 9,511,220 or 2.7% for “Unchanged”.
There were 261 new 52-Week Highs and 30 new 52-Week Lows.
The total volume of stocks traded at the TSX today was 346,779,697 compared with 326,176,902 yesterday, a 6% increase. Today’s volume of 346,779,697 was two percent higher than the average of the ten most recent market sessions.
The US Markets
All three US indexes were down today. The Dow Jones Industrial Average was down -62.30 points, or -0.16%, to close at 39,069.23. The S&P 500 declined -19.27 points, or -0.38%, to close at 5,069.53. The Nasdaq Composite declined -20.57 points or -0.13%, to close at 15,976.25. The indexes were down but volume was up. Volume was up 6.69% on the Nasdaq and 0.30% on the NYSE. That trend of volume being up on days when the indexes are down has been ongoing for a few weeks now but it has not really had much big effect on the rally. The AI mania is affecting the markets, influencing the markets and of course the indexes to deviate from the “normal or usual” expected behavior given certain data patterns.
Discretionary Consumer Good & Services sector, up 0.325, was the top performer today and Energy, up a mere 0.03%, was the only other sector at the US market to end the day’s market session with a gain. Technology declined -0.15%; Healthcare declined -0.22%; Financials declined -0.32% while Industrials was down -0.36% and Basic Materials declined -0.80% and Utilities was down -1.85%. The sectors reflected the indexes’ decline but the good news is that there were no major declines. The market needed to take a breather in the form of an orderly decline and we got it from the market today.
Advertising / Marketing industry gained 4.14%; Paper Products gained 3.08%; Auto & Truck Manufacturers was up 2.99% while Heavy Electrical Equipment industry gained 1.85% and Semiconductor Equipment & Testing gained 1.85%. Consumer Electronics declined -1.98% while Tire & Rubber Products was down -3.36%.
Today’s Market Statistics: Today, the declined issues (decliners) prevailed and outnumbered the gaining issues (advancers) on the NYSE in spite of the rally, by a ratio of 1.55-to-1. There were roughly three decliners for every two advancers. In real numbers, there were 2,405 decliners to 1,547 advancers and 294 “Unchanged”. The total volume of volume-gaining stocks was 362,303,260 or 38.7%; the total volume of declined-volume stocks was 558,943,030 or 59.7%; and 14,511,843 or 1.6% “Unchanged”.
There were 375 new 52-Week Highs and 69 new 52-Week Lows.
The total volume of stocks traded at the NYSE today was 935,758,133 compared to 1,020,761,949 yesterday, an 8.5% decrease. Today’s volume of 935,758,133 is about the average of the ten most recent market sessions.
On the NASDAQ, the advancers continue to prevail and outnumbered the decliners by a ratio of 1.16-to-1 or roughly for every eleven advancers there were ten decliners. In real numbers, there were 2,330 decliners to 1,997 advancers with 302 unchanged. The total volume of volume-gaining stocks was 3,425,115,087 or 61.7%; the total volume of declined-volume stocks was 2,002,132,218 or 36.1% and 123,480,074 or 2.2% for “Unchanged”.
There were 230 new 52-Week Highs and 92 new 52-Week Lows. The current rally remains very much alive.
The total volume of stocks traded at the NASDAQ today was 5,550,727,379 compared to 5,732,566,309 yesterday, a 5% increase. Today’s volume of 5,550,727,379 is just one percent higher than the average of the last ten market sessions.
The market outlook is Market remains bullish
10 –year Treasury Yield: The 10-year U.S. Treasury yield rose to 4.29% today.
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Stocks In The News/Stocks To Watch
The US Market
Coinbase Global Inc. (COIN) was the top performer today. The stock was in an uptrend until the market decline of mid-last week but it looks like the stock is now ready to resume the climb. Talking about digital coin stocks, Marathon Digital Holdings (MARA) is another stock to keep an eye on. It is still quite volatile as most stocks in the price range $20 to $35 tend to be. It is getting good volume traded daily. Be warned, the stock remains quite volatile but it is worth keeping an eye on.
On the electric vehicle manufacturer’s list, two stocks to keep an eye on in the short term are Li Auto Inc. (LI) and Tesla Inc. (TSLA). Tesla is currently in a flat base but showing signs of readiness to move up, of course depending on the market. Li Auto turned back from $41 the last time it got there but it looks, given recent volumes traded, that it is likely to climbing above that price level now. Our view though remains that Electric Vehicle manufacturers are long term investments. Remember that the market will do what it wishes to do regardless of what you and I, or the tools driving our analysis think – pure, “impure” or applied mathematics! With due respect to the IBD founder, the late Bill O’Neal, Li Auto may be forming a “cup with a handle” but yet to trace the handle.
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Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
The Canadian Vanguard Chinese Stocks Watchlist
EV, Energy and Resource Stocks Watchlist
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