K96.3 Kelowna's Classic Rock - Radio Rallies & Reversals

Back on March 8, I told listeners to look for equities to move higher and take out their January highs, and for the CDN$ to push for parity with the US$, and that's exactly what we got. Looking forward, the technicals, with the exception of volume, tell me there is more upside; However, relative strength is in overbought territory so expect periods of consolidation such as last week, with the 50 day MA holding as support. Fundamentally, this rally's days are numbered and perhaps this is reflected in the downward trend in volume and the rounding out in the charts.

For investment opportunities, one theme to follow is mergers and acquisitions; For threats, keep following the sovereign debt story plus the growing spat between the U. S. and China over the value of the yuan. The last thing the global economic recovery needs is a trade war.

That's it for today. Keep tuning into Rallies & Reversals as we explore these issues further. You can also read Rallies & Reversals on Castanet or follow our blog at yourlifeyourplan.ca.

GB