It's not surprising -- they had a rapid move up and now there's a correction. This is the first major correction for this group and it's healthy. |
It's the same old (story). Growth and inflation. That's what's bothering the market. |
More of the same ... the TSE two, Bell and Nortel, those are essentially what have been driving the market. |
My guess is that we'll see a strong opening here on the back of our strong resource market. We are a nation of rocks and trees. |
Natural gas has been very strong. Not only is there a seasonal strength but also the realization that a lot of the stocks are very, very cheap. We have the Americans coming in and the oil patch is for sale to the Americans. |
Nortel and Bell certainly gave it impetus. |
Old economy: 1; new economy: 0. Yea for the dinosaurs. |
The big fear, and the cloud that is overhanging the market is inflation. Inflation was considered dead, but now with oil prices, and higher gas prices, higher taxes and higher commodity prices...all of this with higher activity, eventually it's got to show up. |
The resources took a breather for a variety of reasons. |
The stock has climbed back with clarification from the company. |
Then there's the uncertainty with respect to technology stocks - the valuations went sky-high and now it probably has to swing the other way. |
There's lots of cash around, but it appears everybody has discounted the half-percent increase. |
There's uncertainty with the impact of higher interest rates as to whether it will slow the economy down, and I feel that it won't, and thus we'll have even higher interest rates. |
They have an aggressive management, they have a great balance sheet, they have an array of assets that are leveraged to the gold price. |
This is the proverbial bounce, and it's encouraging that it bounced when it did, but is this the turn? This week there will likely be some backing and filling before the long holiday weekend. |