Below is copy of the Canaccord Morning Coffee (October 31st) specific to TSX Venture exchange that I thought you may be interested in reading. Remember, that the stock market always moves well in advance of the economy and I for one say good bye to the past few months and look forward much better market performance going forward. (hope so anyways)
S&P/TSX Venture (JX : 879.75), Net Change: 21.43, % Change: 2.50%
TSX-I Follow the laggard.
In the fall of 2002, the TSX bottomed from the tech wreck of the prior years. It bottomed in the early part of October and quickly recovered more than 10% from this bottom - sound familiar? Well, for the next three weeks, the TSX Venture index did nothing, just traded flat. Then it rebounded. Initially, the Venture bounced 5%, and then kept going up. By the end of December, both TSX Venture had caught up with the TSX, both being up by over 15% off the lows. And by the third week of January, the TSX Venture had gained 25% off the lows, which was about 7% more than the rebound on the TSX. Given that the TSX Venture is weighted towards the junior mining space, positioning one self in some high-quality junior names could be a way to play this trade. Earlier this week, Canaccord's Mining and Metals team published a report titled "A 'defensive' slant in an offensive small-cap mining sector" in which they highlighted some high quality junior mining names. Please contact your Canaccord advisor for a copy of this report.
