TECHNICAL INDICATORS INCLUDED IN THE WEEKLY UPDATES HAVE ACTED LIKE A ROAD MAP, GUIDING INVESTORS TO TAKE ADVANTAGE OF THE PATH TO ALL-TIME RECORD HIGHS IN THE S&P/TSX.

In spite of all the market volatility and negative news that bombards us everyday, the markets have again climbed the proverbial wall of worry. While the SP 500 is up over 11% since the Mar. 17 low, the TSX has risen 22% from the Jan. 22 low by reaching all-time record highs of 14,666 today. While many are perplexed about how this could happen in such an uncertain environment, the indicators and comments included in the weekly updates have been providing a rationale for this strength throughout the rally. It is another example of why it is so much better to rely on technical indicators that tell you where the money is flowing, rather than on news, opinions, and statistics which explain what has happened in the past. It is like a tourist entering an unfamiliar city. The tourist can either look in the rear view mirror, or at a map. While a map does not predict the future, it shows us where we are and where we are heading. It is the same with technical tools illustrated in these updates. They don't tell us where the markets will be three or six months in the future, but they at least tell us where we are in the cycle, and what the trend is likely to be. Once again, they provided a clear signal that the worst-case scenario was factored into current prices some time ago. Since most people that wanted to sell had already sold, this meant that the only way the markets could go was up.

While the dismal performance of the US financials has hurt the performance of the US market averages, the TSX has continued to outperform global equity markets. These updates have been recommending to invest primarily in Canada.

While a short-term pause or consolidation could occur at any time, there seem to be few signs of any longer term trouble for the time being. However, the resources could pause while the financials catch up.

Bonds - Bond prices are still weak according to the long-term oscillators.

Commodities - Gold and silver prices look they are building a base since the oscillators have not turned up yet. The Feb. 11, 2008 Oil chart showed that oil had likely bottomed at $93.38. The Feb. 18, 2008 Oil chart showed that the long-term oscillator had turned up (at $96.21) and that oil likely started a new up trend. Now, almost three months later, the price of oil has been making headlines for weeks as it rises relentlessly over $120. However, as the price rises, so does the risk. While the up trend is due for a pause, it is difficult to know when or if that will happen. It is usually prudent to look for lower risk opportunities at a time like this rather than stick with an up trend too long. As copper prices had the biggest rise in history last Monday, the oscillators suggested that it was a blow-off instead of a new rise. Accordingly, copper prices drifted lower after that.

Currencies - Trends indicate that the CAD$ should strengthen compared to the US$. After a long rise, the euro should continue to correct versus the US$ and the yen.

The trend chart turned positive for the TSX on Apr. 7, more than a month before the TSX closed at a new all-time high today.

The SP 500 Index was one of the last indexes in North America to turn positive because of the large weighting in the financial sector. This shows that Canada is the stronger and better place to invest in.

The US Financial Services Index and Banking Index trend charts have been red ever since last summer when the sub-prime problems began to surface. It would be positive if they finally turned green too.

The long-term oscillators for the financial stocks still has some distance to go before reaching the overbought level. Further strength here would help the US markets, which could offset weakness in the resource sectors if that happens.

Bond prices still appear to be weak.

The long-term oscillators for gold and silver are very low, suggesting that much of the risk has dissipated. However, they need to turn up to indicate that an up trend has started. Since they have not turned up yet, it seems that a period of base-building has started.

The long-term oscillator for oil is very high. This is usually when a pause in the up trend occurs in the near future.

The long-term oscillator for copper is in a down trend, suggesting that prices should correct in spite of a record setting rise occurred last Monday.

The oscillator for the CAD$ has turned up again indicating that it should gain against the US$.

On the other hand, the euro looks like it is still correcting against the US$ and the yen.

The euro looks weak compared to the yen.

The euro would have to decline more against the US$ for this trend chart to turn red or negative.

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