First, let's look at the Canadian Dollar:
As I mentioned in May, the Canadian Dollar has entered a long term down trend. Since that time, the price has continued to decline and the damage has now spilled over to the weekly chart, as shown above.
I don't want to get caught up in a narrative fallacy, but the Canadian dollar may be weakening along with commodities. Almost every commodity I look at appears bearish to me; for example, take this chart of copper:
A falling Canadian Dollar and weakening commodities have taken a toll on Canadian stocks. The chart below is a daily chart of the Canadian iShares:
Despite an enormous rally in American stocks, stocks north of the border haven't made a dime for all of 2013, making Canada one of the weakest markets in the world.
To complete the trifecta, interest rates in Canada are rising, so Canadian investors cannot even take refuge in bonds:
What effect will rising interest rates have in Canada, a nation that has more consumer debt per capita than even the Americans and one of the frothiest housing markets in the world?
As always, price tells all:
