The correction may be over, but good news is still hard to come by, notes Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly commentary.
- The TSX continues to move sideways, having traded around the 13,350 level since late August (though the range has been quite large).
- There will be steady stream of news on the state of the economy (both U.S. and Canada) throughout the week; the impending start of earnings season will be of great interest, as we’ll get insight into the consequences of recent commodity, currency and international developments on earnings. This will likely gain more focus as Chinese markets are closed, reducing some of the volatility.
- The TSX is out of correction territory YTD, though all but three sectors have double digit losses from 52 week highs. Further losses cannot be ruled out if earnings do not meet expectations.
- TSX Equal Weight Index is outperforming the TSX Composite so far in October, as some of the large caps have been underperforming and as a result have weighed on the market-cap-weighted TSX Composite.