- Good morning everyone.
Welcome to Friday morning. .
- It's Stephen Whiteside here
from TheUpTrend.com with today's look .
- at North American stock market trends.
In the pre market this morning .
- markets have been all over the place, .
- but not as much volatility
as we saw yesterday. .
- Dow futures were up 180
points a little while ago. .
- Now they're basically unchanged. .
- There's a lot of volatility in reaction .
- to a lot of earnings that are
coming out this morning. .
- And of course, I can't keep up with those
numbers while trying to record a video. .
- But here we are. .
- If you were with us yesterday morning, .
- we were looking at Wednesday's trading
action and for the most part it was .
- an inside day, a pause day,
a day of indecision. .
- They were waiting for more information .
- and that information was going to come
on Thursday morning with the CPI numbers. .
- And at that point we were
expecting volatility to expand. .
- And that certainly happened
before the CPI numbers came out. .
- Stock index futures were positive
going into the market open. .
- They were certainly negative
being led lower by the Nasdaq. .
- Dow futures finished the futures premarket
trading session yesterday down 525 points. .
- But then things changed once the European
markets closed later in the morning and we .
- got an enormous amount of bullish reversal
signals from Thursday's trading action. .
- So two things happened yesterday. .
- We had got an enormous amount of 52 week .
- lows and an enormous amount
of bullish reversal signals. .
- Bullish reversal signals, of course, .
- are one day events and they
need to be confirmed. .
- But we are going to see some an enormous .
- resistance from the highs
from the previous week. .
- So just remember that if we do keep going .
- from here and there's certainly
a mathematical possibility that we could .
- end Friday with a buy
signal for the spiders. .
- There's the queues making
a new low yesterday. .
- And again, we could end Friday
with a buy signal for the queues. .
- There's
the iShares for the TSX 60. .
- We're putting in a bullish reversal signal
and we moved back up into the channel. .
- So yes, mathematically there's .
- a possibility of a buy signal
for the IShares for the TSX 60 on Friday. .
- Now, the Dow diamonds did end
yesterday on a buy signal. .
- And we are coming up to the highs
from the previous week up there at 304.69. .
- And we closed just above $300, at
$300.56 yesterday. .
- So $300 isn't acting as resistance. .
- So 304.69, that's the next target .
- to the upside and that's
certainly possible resistance. .
- Now, yesterday morning I showed this chart
of the Vanguard all world except .
- the US ETF, and it did dip below 43 75,
but came back going into the close. .
- Now, banks are out with earnings today .
- and these numbers of course,
are old and by the time you see this .
- video, but so far the earnings
from JPMorgan have been received .
- positively and we've also seen
some buying in Morgan Stanley. .
- There's a whole bunch of other earnings .
- coming out this morning, which could
push the market either up or down. .
- Now, none of the megatrends
changed yesterday. .
- Yes, the VIX came down, but certainly .
- we did not see a sell signal for the VIX
yesterday that would happen on Friday .
- with a close below $30.44. We did see
the US dollar index pulled back, .
- had an outside reversal day, looking
for a close below 111.76 on Friday. .
- Then we saw gold. .
- While the US dollar index was pulling .
- back, gold actually closed
the day slightly lower yesterday. .
- So no trend change,
there no trend change for copper. .
- Copper traded higher yesterday
still in the channel. .
- Then we saw yields,
bond yields continued to move higher. .
- Bonds themselves were
slightly lower yesterday. .
- Then looking at the energy sector while
we're still looking for crude to help. .
- On the inflation front,
that didn't happen yesterday with crude .
- oil trading higher, closing up two 2%, and
natural gas was fairly quiet yesterday. .
- It didn't take out
the previous day's high. .
- And of course there's a lot more
volatility in natural gas, .
- so being up three 8%,
not that big a deal for natural gas. .
- Let's finish off looking at the five most .
- actively traded stocks by dollar volume
yesterday, starting off on Bay Street, .
- the big winner with the Royal Bank,
look at how big that bar is. .
- So a new low yesterday and then we .
- recovered trading up
to the lower channel line. .
- Then looking at Canadian Natural
Resources accrued oil was higher. .
- Canadian Natural traded up
to the $75, close at $75.16. .
- If we can take out the high from a couple
of days ago, then 78.13 comes into play. .
- Then another bank big up move
yesterday for the TD Bank. .
- Certainly a possibility
for a buy signal on Friday. .
- Our next price target was 84.38. .
- We closed at 84.31. .
- So you can see there's lots
of resistance above the 87.50 level. .
- Then looking at Embridge trading
up into the channel yesterday. .
- And then Bacon, Nova Scotia,
trading up into the channel, .
- close above 66.43 would give
us a buy signal on Friday. .
- And then let's finish
off with Wall Street. .
- The most actively traded stock
by dollar volume was Tesla. .
- New low yesterday, then closed
above the previous days high. .
- So something could be going on there. .
- We're trying to get down to $200. .
- Got as low as 206.22 yesterday. .
- Then we're looking at Apple
trading up into the channel. .
- A close above 144.78 would give
us a buy signal on Friday. .
- Then Nvidia trading up to the lower .
- channel line, looking for close
above 125.68 on Friday. .
- And then Microsoft, microsoft,
nice big bar there yesterday. .
- Close above 239.54 would give us
a buy signal on Friday for Microsoft. .
- And then last up Amazon. .
- Amazon still closing and trading
below the lower channel line. .
- So no joy there. .
- I'm currently short Amazon and got to buy
back some shares yesterday at 106.25. .
- Okay folks, that is all for this
morning's presentation. .
- Yesterday was a wild and exciting day. .
- At the same day, on the same day that we
were making new 52 week lows, .
- we had the big bullish reversal day
that could be the start of something new. .
- But with what happened yesterday,
that's not enough to go on. .
- And so we'll need to wait and see if any
of those big megatrends start to change. .
- It doesn't look like that's going .
- to happen at the open on Friday morning,
but only time will tell. .
- Enjoy the rest of the day and of course,
enjoy your weekend. .
- Next time you'll hear
my voice is on Sunday. .