CIBC’s chief market technician on how much higher the TSX will climb over the next few months (and the 10 stocks to buy right now)

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Sid Mokhtari discusses his stock market outlook along with potential buying opportunities

CIBC’s chief market technician on how much higher the TSX will climb over the next few months The Globe and Mail recently spoke with Sid Mokhtari, chief market technician at CIBC Capital Markets, about his matrix process that has a strong performance track record. Year-to-date to Sept. 30, this process has delivered a 21.9 per cent return, surpassing the S&P/TSX Composite Index’s 14.5 per cent.

Is there a certain environment where your screening process has the greatest predictability and reliability? I would say that we’re still seeing dividend yield, value, quality and low vol in our leading quad. With that in mind, we are also seeing GARP , which is an element of growth and momentum, and other momentum factors coming into our improving quad. It’s because the market is broadening out and you’re seeing a lot more participation in equities performance.Upside for the TSX is close to 25,700.

That’s correct. We are measuring a potential retracement because by historical measures, when September is as strong as we’ve had, the odds of repeatability drops to about 50/50.

 

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