- Good morning everyone.
Welcome to Wednesday morning. .
- It's Stephen Whiteside here .
- from theuptrend.com with today's look
at North American stock market trends. .
- In the premarket this morning stock index
futures are trading below fair value. .
- dooff future is currently down 180 points. .
- So we are looking for a little bit of
selling at the open on Wednesday morning. .
- Now we have the VIX back on a cell
signal as of Tuesday's close. .
- Typically I'd be really excited about this
but the recent history shows that we're .
- not likely to sustain a rally
for any length of time here. .
- So not overly excited about this. .
- We did get the SPY ETF back on a buy .
- signal, ran up to 375 and stopped
closed at 371.13 yesterday. .
- The QQQ's for the Nasdaq did not
generate a buy signal yesterday. .
- Traded up into the open gap did
not get up to the 281.25 level. .
- So still waiting for the queues. .
- The iShares for the TSX 60 did
generate a buy signal yesterday. .
- We did run up and hit 28.91. .
- Closed at 28.83 yesterday. .
- So we are on a buy signal again. .
- Not that confident about
any new buy signals here. .
- We are in a bear market now. .
- Netflix is in the news this morning. .
- It's traded up to 250 for the past
couple of days in the pre market. .
- This morning it is trading up in the high .
- two hundred and sixty s and so that's
a nice pop if you are long netflix I would .
- be selling half of my position this
morning into that gap open because I don't .
- think it's going to be able to hold
those levels for very long. .
- Then we've got Tesla in the news,
it's reporting earnings tonight. .
- It's still on a sell signal. .
- That would change with a close above .
- 234.52. 250 is our next target to the upside
200 is our psychological area of support. .
- We traded down towards that last week,
got down I think to 206. .
- Our next mathematical target below the 200
psychological support area is 187.50. .
- Now a couple of stocks that I'm currently
short, apple traded up through the upper .
- channel line yesterday
but did not hold those gains. .
- So still looking for close above the upper .
- channel line and a similar
situation for Amazon. .
- Amazon closing just below the upper .
- channel line.
And sticking with technology stocks we've .
- got Shopify back on a buy signal
on both sides of the border. .
- Again with all these buy
signals confidence is low. .
- Last couple of times we've had buy signals
they faded away fairly quickly and put .
- in lower highs and so we'll
have to wait and see. .
- Remember we just put in a lower
low last week, a new 52 week low. .
- So with all these stocks and I'm just .
- using Shopify as an example because
a lot of stocks look just like this. .
- The first tell will be do we take out
the high from a couple of weeks ago? .
- If we can take that out and start
to change the pattern from a series .
- of lower highs and lower lows
to actually making a higher high. .
- That might impress some
people in the market. .
- We'll just have to wait and see. .
- But right now, all of these buy signals .
- look like they're going
to fade away fairly quickly. .
- Let's finish off this
morning's presentation. .
- Looking at those megatrends. .
- And the US dollar dipped into the channel .
- yesterday, but still closed
above the upper channel line. .
- No change there,
no real change for the euro. .
- Just closed up a tick. .
- Canadian dollar traded up to the upper .
- channel line, but then pulled
back and closed lower on the day. .
- And there's the Japanese
yen making a new low. .
- I understand that that's probably
the lowest or the biggest spread between .
- the US dollar and the
Japanese yen since 1990. .
- Then we're looking at bond yields. .
- They made a new high yesterday,
bonds made a new low. .
- Then we've got copper actually
ending the day on a sell signal. .
- So after treading water for over
a week, we finally broke down. .
- And coppers back on a sell signal, .
- joining gold, which closed up
a couple of bucks yesterday. .
- Had another inside day, .
- so they're really waiting for something to
add some volatility to the gold market. .
- And then silver closing higher
yesterday by less than half a percent. .
- Still trading below
the lower channel line. .
- Then moving on to energy. .
- We had crude oil come down almost 3%
on the day, back on a sell signal. .
- And then we've got natural gas making
a new low for this move on Tuesday. .
- Okay folks, that's all for this
morning's presentation. .
- We've got stock index futures lower. .
- We have a bunch of new buy signals. .
- I would from Tuesday's trading action, .
- I would certainly not want
to be aggressive here. .
- Once again, you've heard me say this
for month after month, .
- that there's no reason to use margin
or to jump in with both feet. .
- If you want to take any new buy signals,
take a partial position. .
- And from the buy signals we got yesterday,
you can always wait and see if we get .
- another close above the upper
chin line on Wednesday. .
- Enjoy the rest of your day. .
- Next time you'll hear my voice
is on Thursday morning. .