TSX INDICES (Chappy’s Stock Picks)

The TSX Composite fell 3.5 per cent this past week as most sub-indices were down on the week. The only exception was gold, which managed to eke out a small gain and maintain its up trend. Energy stocks fell, which was a bit of a surprise, although gas prices fell from their recent highs and oil closed off its highs. Elsewhere it is getting ugly, with fresh get-out signals coming from consumer discretionary, industrials and telecommunications. Health care and real estate are starting to look downright ugly. Financials look like they may well go into a free fall.

Officially neither the TSX Composite nor the TSX 60 has given a sell signal. As long as golds and energy hold up, it may not. But even the formerly good metals and mining chart is suggesting a topping pattern and materials of course would follow, but could be held back by gold stocks as long as they can remain up. But even gold stocks may be vulnerable to a correction, though not enough to send them into the kind of tank we are seeing elsewhere.

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