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Canadian stocks are heading north, and one trader sees even more gains

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President Donald Trump's meeting with Canadian Prime Minister Justin Trudeau this week may not be the only thing diverting eyes north of the border. The country's stock market has been ripping higher.

The S&P/TSX Toronto composite is up nearly 30 percent in the last year, far outperforming U.S. equities.Oppenheimer technician Ari Wald believes Canadian stocks may go even higher.

"What you'll notice about it is the [TSX] index is really round trip from where it was back in the summer of 2014," Wald said Monday on CNBC's "Power Lunch." "After a pretty deep sell-off, we're right back at those levels, pushing out to new highs, and breaking above that resistance."

Wald also said the rising 200-day moving average on the Canadian index indicates a "bullish trend" that is likely to continue, as the marker hints at higher lows and higher highs. "This is really also all within our more macro thesis that global breadth is broadening here," he concluded, touching on the rally in non-U.S. stocks.

Erin Gibbs, chief investment officer at S&P Global, not only likes the current valuations of Canadian stocks, but thanks to the heavier weighting of energy and materials on the index another rally could be on the way. More specifically, Gibbs believes that if the U.S. and Canada move ahead with the construction of the hotly debated Keystone Pipeline, the heavier weighting of energy and materials stocks on the TSX composite could pull the market even higher.

"As long as energy prices remain fairly stable, we're positive," she concluded. "Plus valuations look pretty decent here."

Canadian stocks have rallied 3 percent year to date while the S&P 500 is up about 4 percent.