The Canadian market continues to move up

Image Souce: Krish Capital Pty Ltd

Index Update: The Canadian market climbed to a new record high on Friday, rising for a third straight day, thanks to strong gains in materials stocks as metal prices surged to record highs. The benchmark S&P/TSX Composite Index, which marched to a new intra-day high at 24,850.15, settled with a gain of 132.06 points or 0.53% at 24,822.54, a new closing high.

Macro Update: In U.S. economic news, the Commerce Department released a report showing a modest pullback by housing starts in the month of September.

The Commerce Department said housing starts fell by 0.5 percent to an annual rate of 1.354 million in September after spiking by 7.8 percent to a revised rate of 1.361 million in August.

Top Movers: The Materials Capped Index climbed 3.18%. Iamgold Corp (IMG.TO), the biggest gainer in the section, soared 16.6%. First Majestic Silver Corp (AG.TO) zoomed 15.3%, while Pan American Silver Corp (PAAS.TO) and Fortuna Silver Mines (FVI.TO) gained 10.5% and 10.3%, respectively.

Our Stance: From a technical standpoint, the index is comfortably positioned above its 21-period Simple Moving Average (SMA), a key indicator of bullish sentiment that suggests potential support at this level. Additionally, the Relative Strength Index (RSI) sits at approximately 79.47 on the 14-period scale, indicating strong momentum but also approaching overbought territory. Overall, the current market dynamics point to a healthy level of optimism, driven by sectoral strength and solid investor engagement. However, market participants may want to remain vigilant for any signs of overextension as the index continues to rally.

Commodity Update: On Monday, the dollar index held steady after China's prime rate cut. At the same time, gold soared to a record high amidst escalating Middle East conflicts and an exceptionally close U.S. presidential election. Gold climbed 0.54% to $2,744.90 per ounce, silver rose 3.01% to $34.24 per ounce, and copper increased by 1.01% to $9,728.50 per ton. Meanwhile, Brent crude futures inched up 0.2% to $73.21, following significant losses last week. Traders remain focused on demand signals and potential supply disruptions in the Middle East, contributing to market volatility.

Technical Update: The S&P/TSX Composite Index enjoyed a strong bullish session on Friday, surging 132.06 points to close at 24,822.54, reflecting a 0.53% gain. This uptick was underpinned by increased trading volume, signaling robust buying activity among investors. Notably, the basic materials sector led the charge with a remarkable 1.50% rise, driven by favorable market conditions and heightened demand. The technology sector also added to the positive momentum, advancing 0.48%, indicating a broad-based confidence across the market. From a technical standpoint, the index is comfortably positioned above its 21-period Simple Moving Average (SMA), a key indicator of bullish sentiment that suggests potential support at this level. Additionally, the Relative Strength Index (RSI) sits at approximately 79.47 on the 14-period scale, indicating strong momentum but also approaching overbought territory. Overall, the current market dynamics point to a healthy level of optimism, driven by sectoral strength and solid investor engagement. However, market participants may want to remain vigilant for any signs of overextension as the index continues to rally.