The TSX generally shows a very high correlation to the price of oil (at about 90% on the 20 day average). The index will likely continue to closely track the price movements of WTI going forward.
The latest price drop in WTI shows weakness in a of near $50. Note latest weakness against upper . Also weekly of 64 is the highest in 8 months. The 'round figure' of $50 also likely serves as a kind of 'psychological' level in the mind of traders.
The B.H. rig count has not only stopped falling and flattened out, but actually seems to be rising. A year ago when the rig count stopped falling, WTI dropped sharply to reach new lows.
Canadian investors can own the TSX composite index using the iShares E.T.F. trading under the symbol XIC . American investors can buy the iShares MSCI Canada E.T.F which trades under the symbol EWC, offering access to 85% of the Canadian stock market and a lower yield of 2%.
I'm interested to hear from any interested TSX traders and investors. Let's get a dialog going! Please do share your thoughts and insights!