The stock market was a disappointment over the past week. The TSX lost 2% on the week. It is down about 10% over the past three months, which is no fun at all. Even bonds had a negative week. Correlation between stocks and bonds is clearly not stable, and isn’t even always negative.

Gold (IGT) is the only asset with positive momentum, hinting at good short-term performance. It’s considered a safe haven during volatile times, so that stands to reason. Oil still looks scary, but not as scary as Brazil stocks.

Last week, I suggested a handful of Canadian and US stocks that appeared interesting. Dollarama (DOL), Alimentation Couche-Tard (ATD.B) and Constellation Software (CSU) still have good momentum, but Valeant (VRX) started dropping and appears out of favour. In the US, only Nike (NKE) and Amazon (AMZN) have good momentum, with others appearing less likely to produce short-term gains.

The market is struggling, and very few stocks can overcome the headwind.

Market Outlook September 28, 2015

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