Several gold names at oversold levels, says Nasdaq analyst

As of last week, seven stocks were sitting in technically oversold levels, with gold being the dominant sector affected, says Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly market commentary.

The seven stocks are: NovaGold Resources, Eldorado Gold, Yamana Gold, Concordia International Corp. (a pharmaceutical company), First Majestic Silver Corp., Alaris Royalty and Avigilon Corp.

Read: Looking to precious metals? Watch these trends

More highlights

• The TSX ended last week with very slight losses, but it remains at +12% year to date. Small Caps suffered outsized losses, while Large Caps were almost flat.
• Gold stocks underperformed last week, losing about 9% and adding on to the 4% decline the week prior. The slowing momentum in this standout TSX performer this year is holding back any further gains.
• Losses in both oil and gold last week hindered the Canadian dollar vs the greenback, which weakened just over 1%.
• Consider that the MSCI Indices rebalances on August 31^st, which will result in the possibility of higher volatility and volumes.
• On the domestic economic front, we have industrial data out on Tuesday. But the headline will be Canadian GDP data on Wednesday—recent readings have shown sputtering growth as manufacturing fails to take off as the BoC expected. Read: Business investment hasn’t been this crummy in 40 years
• The U.S. will see monthly nonfarm payrolls released on Friday. The employment situation in the U.S. continues to show robust gains, in contrast to some of the recent data out of Canada. Read: Yellen cautious, but says case for rate hike stronger

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.