The Canadian appears to be poised for an upside breakout on its charts. Part of the gainsin the Canadian are the result of improving North American economic sentiment and part of the gains are theresult of the Chinese stimulus announcement. However, the Chinese stimulus was small in scope and thereforethe Canadian bulls probably need to see positive US data to leave the bull camp in control. We are a littlediscouraged that recent gains on the charts have been accompanied by declining volume and open interest. Thebulls have the edge but we don’t like the risk and reward setup of being long from current levels.
