Weekly Investment Conclusion
The intermediate corrective phase in North American equity markets remains intact.
Short-term strength provides an opportunity to reduce equity exposure, particularly in sectors that have a history of moving lower during a summer corrective phase.
These sectors included industrials, consumer discretionary, materials and financials.
The sectors, which we have identified so far, that are showing positive momentum for seasonal trades this summer are fertilizers and gold. They already are showing signs of outperformance relative to the S&P 500 Index and the TSX Composite Index.