I have re-established a short position on Canada.

It has not been a profitable position so far.  But futility has never persuaded us here at Running of the Bulls!

The Toronto Stock Exchange approached an all-time high today, then closed down.  The MACD and RSI, however, did not close to hitting the recent highs. 

Oil stocks in the US failed to reach their high and pivoted lower mid-day.  The OSX pivoted at the high then closed lower.  Brazil, which had been trading along with the commodities, is rolling over. 

From the beginning of the run-up on May 28, when the Toronto Stock Exchange advanced 4.1% to the high today, the ratio of advancers to decliners was essentially flat at 1.02. On only two of the recent eight trading days has the ratio of advancers to decliners been positive - May 20 and June 5.  The other six days saw more decliners than advancers, even as the index rose.  Excluding those two days, the ratio was 0.86. 

Since the high on May 20 to the intra-day high today, in 12 of the 14 trading days, the number of decliners was greater than the number of advancers.  In only two, the two above, did advancers outpace decliners.  For the entire period, the ratio of advancers to decliners was 0.93. 

Thus, the market has become narrower.

Ultimately, soaring energy prices are bad for the economy and bad for the Canadian market as slowing economic growth will dampen demand for energy and raw materials.