Tech stocks saw a resurgence while material and energy stocks continue to get beat down over the course of this weeks trading action. One stock in particular, Shopify (TSX:SHOP) was in the midst of its biggest correction since its IPO in 2015. The stock had hit a 14 day RSI level of under 30. If you’re new to buying stocks, the RSI is a technical indicator, and an RSI of under 30 can signal that its due for a bounceback. It did just that today, as Shopify was one of the biggest gainers on the TSX.
Material stocks, in particular gold and silver producers had yet another negative day this week, and the sector as a whole took heavy damage with 36 of the 47 major material stocks in the red. The price of gold dropped $23 on the day to sit at $1510 an ounce, which may have contributed to the losses.
Another key stock on our top gainers list today was a company that has been suffering heavy losses over the last few months, Canopy Growth (TSX:WEED), which gained nearly 3%. The stock has fallen from highs of over $70 in May of 2018 to nearly falling below $30 a share as investors are finally growing impatient with the lack of earnings growth in the Canadian cannabis sector.
So, what stocks came out ahead today on the TSX? Lets have a look
Shopify (TSX:SHOP): +6.86%
Hudbay Minerals Inc (TSX:HEM): +3.92%
Canopy Growth (TSX:WEED): +2.83%
Methanex (TSX:MX): +2.76%
Uni Select (TSX:UNS): +2.69%
Norbord Inc (TSX:OSB): +2.62%
Cameco Corp (TSX:CCO): +2.30%
The Stars Group (TSX:TSGI): +2.26%
What stocks lost the most on the TSX today?
Like I mentioned above, it was a bad day for gold and silver miners, as most suffered significant losses north of 5%. The volatility in the industry as of late has been more than most investors can handle, and if you don’t have the stomach for rapid swings, it may be wise to avoid the industry. As market uncertainty continues, we’re clearly seeing indecisiveness as investors move from one safe haven to the other.
New Gold Inc (TSX:NGD): -7.95%
Mag Silver Corp (TSX:MAG): -6.03%
Fortuna Silver Mines (TSX:FVI): -5.34%
Kinross Gold (TSX:K): -5.14%
First Majestic Silver (TSX:FR): -5.09%
Yamana Gold (TSX:YRI): -5.00%
Alamos Gold Inc (TSX:AGI): -4.95%
Pan American Silver (TSX:PAAS): -4.61%
It’s interesting to see all of the biggest losers coming from the material sector, with the biggest being New Gold Inc (TSX:NGD). One thing to keep in mind, even though these 8 stocks faced fairly significant losses on the day, none of them have crossed into oversold territory.
So while these Canadian stocks may look to provide short term upside potential with single day losses of over 5%, one of the strongest technical indicators when looking for bounce backs is not signalling any of the action today as overdone. We may see more negative days ahead for the material sector on the TSX.