The Canadian Technician

Checking The Detail in Retail

Greg Schnell

Greg Schnell

Chief Technical Analyst, Osprey Strategic

Some Canadian Retail stocks recently hit turbo mode!100208

Photo courtesy of Autoblog.com

Here are the charts of three interesting Retailers that might have you driving one of these.

Canadian Tire recently bought the Forzani Group including SportCheck.

CTC:A.TO 20131030


Here is Hudson Bay Company. They recently acquired Sak's Fifth Avenue.

HBC.TO

Here is Dollarama.

DOL.TO 20131030
Not all the reatilers look this hot. Here is Reitmans.

RET:A.TO 20131030

There are many reasons technically not to buy Reitmans. The downward slide looks brutal. Hopefully it can base soon for investors. The important thing to note here is something as simple as the SCTR line on the charts. If it can't get above 75, the institutional investors are probably not adding to positions. They are probably selling their positions. Weak stocks can stay weak for a while.

If you are looking to buy the zoom shown above, you may find the SCTR ranking line a simple but helpful method of filtering stocks. On the SCTR indicator panel, HL means horizontal line. I have placed it at 70, just for a reference point.

Currently, I am writing a series of blogs explaining what the SCTR is, why it is important and trying to help readers set up chartlists and scans to find these attractive stocks as they break out. In early October HBC.TO showed up on the scan. New stocks are showing up every day. Let me know if you are following the SCTR articles to put it in your trading arsenal. Or feel free to jon the conversation and send in suggestions.

Lastly, vroom Vroom. The Porsche 918 gets over 75 US MPG. How sweet is that! 

Good Trading,

Greg Schnell, CMT

Greg Schnell
About the author: , CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More