TSX set to rise this week

Malcolm Morrison, Canadian Press
Published: Sunday, January 14, 2007

"And although the TSX appears set to recapture some more lost ground this week, the near-term future is murkier."

"It looks like we're going to push higher but my suspicion is that maybe the next five to 10 per cent move is down rather than up," said John Johnston, chief strategist at the Harbour Group at RBC Dominion Securities."

"Everything is still looking a bit stretched and there is probably more downside than upside in the near term and that we run into the risk of a correction -- back to around the 12,000 level, about five per cent."

"The TSX moved higher last week after a series of punishing losses, largely based on tumbling commodity prices, which at one point pushed the main index down 3.5 per cent from the start of the year."

"A rebound in oil prices was a big reason for the turnaround last week. Crude prices closed as low as US$51.88 a barrel last week, a drop of 15 per cent since the beginning of the month."

"Copper was another notable decliner, falling sharply as housing construction slowed and inventories piled up." Full Article.