Our CAD had a great blast up, but it had a small section where it was extremely choppy. This could be part of an inverted "ABC" with the potential to be part of a bigger zigzag, yet to come. If all the fears are about the economy getting worse as well as deflation fears, thrown in for good luck, why should or dollar go anywhere but down? Fundamentals at the extremes will always tell us the wrong things.
The sentiment bullish consensus reading hit such a crazy low last week that virtually leaves nobody left to get out of the CAD. Also, any panic out of the CAD at this point shows very little knowledge about when something is oversold. Bullish readings of only 6% bulls, means there is nobody left to get out, as this is the most extreme reading I have personally ever seen.
A small impulse has started on the way down and if this was not a big fake, it would have to find a bottom and then soar again. On the daily charts we have a wicked spike that formed to the upside so a correction was definitely due.
Since our CAD has travelled to a crazy bearish side, our Vancouver SFD has gone the opposite direction. Look how the listings have imploded, as it seems nobody wants to sell their SFD at a high price. A 44 % gain in two years or so is not real and cannot be maintained, but picking the exact top is tricky with any real estate market. If Our CAD rockets upward should that not make the SFD cheaper?