- Good morning, everyone.
Welcome to Tuesday morning. .
- It's Stephen Whiteside here
from theuptrend.com in the pre market .
- this morning, things are
looking fairly bullish. .
- We've got the Dow futures
up about 200 points. .
- Commodities are mixed, .
- natural gas and gold are higher, while
crude oil is lower on Tuesday morning. .
- Well, Monday was an interesting day. .
- The Dow diamonds, the SPY ETF, .
- and the Q's for the Nasdaq all made new
highs and then closed lower on the day. .
- So they all generated
bearish reversal signals. .
- What they didn't do is they didn't
close below the previous day's low. .
- That would have been a much
more of a bearish signal. .
- Now, the Canadian market did not make .
- a new high yesterday and did close
below the previous day's low. .
- So things looking a little weaker
there for both the TSX and the TSX 60. .
- Now, while the stock index futures pulled
back yesterday, .
- we saw the VIX close slightly higher still
closing below the lower channel line. .
- So not concerned on Tuesday. .
- Things, of course, would change if the VIX
were to close above $26.24 on the weekend. .
- We talked about following
the US dollar index. .
- It closed slightly higher yesterday
inside day, no major changes there. .
- And then the Chinese market has come back
quite a bit over the last week or so. .
- We're looking at the eye shares
for the Hong Kong market. .
- You can see the gaps on the screen. .
- You expect to see gaps in charts
for anything that is traded .
- in North America that is
following something overseas. .
- You've always got that time gap .
- which shows up in the charts
as a nice big white space. .
- So we've seen a huge recovery
in the Chinese market. .
- A lot of it has to do with the rumors .
- that they're going to reduce the COVID
restrictions and there might do something .
- about all the banking
problems that they've got. .
- And one of the biggest problems they have, .
- which they're not able to really do
much about, is the water shortage. .
- There's a huge drought in China
and that is not only affecting drinking .
- water, but a lot of their electricity
comes from hydroelectric dams. .
- And with the river levels at historic .
- lows, that seems to be
a problem at the moment. .
- So we may see some huge blackouts
in China over the winter. .
- Now, looking at what's going on this .
- morning, well, Walmart
is out with earnings. .
- And Walmart came into today on a sell
signal, generated a sell signal four days .
- ago, and you can see yesterday they traded
it down with the rest of the market. .
- In the pre market this morning,
we are up over the 43.75 resistance level, .
- which has held us in check
for the past few weeks. .
- And we're up there at 47.66 last time I checked. .
- Of course, that number fluctuates every .
- second, but we're getting pretty close
to the 150 level, .
- which is not only a daily target,
but it's also a weekly target. .
- While Walmart is up. .
- Some of the other retailers are
also trading higher this morning. .
- Target, TJ, Maxx, they're
all up in the pre market. .
- What's not working in the pre market,
or should I say what is not consistently .
- working in the pre market
this morning is Home Depot. .
- Last time I blinked, it was down. .
- It's been up, it's been all
over the place this morning. .
- So Home Depot may open lower on Tuesday, .
- but not enough to give
us a new cell signal. .
- Now, chips have done really well over
the last couple of weeks, and of course, .
- I love watching the chip
sector move higher. .
- That is inspirational. .
- This morning we find out .
- that Warren Buffett's company has put
$4 billion into Taiwan Semiconductor. .
- And that news .
- has taken Taiwan Semiconductor up over
10% in the pre market this morning. .
- So obviously Warren Buffett's not worried
about China invading Taiwan anytime soon. .
- Let's finish off with a quick look
at commodities and crude oil. .
- Still on a sell signal. .
- Trading lower in the pre
market this morning. .
- Inside day yesterday for natural gas
trading higher in the pre market. .
- Then we've got copper making a new
high yesterday before pulling back. .
- That's a bearish reversal. .
- Day again, not closing below
the previous days low. .
- There's gold making a new high yesterday. .
- Gold's getting up,
trying to take out the 1781.25 level. .
- If we can do that. .
- If you look over to the left,
you can see in August we had a nice .
- cluster of resistance up there
between 1781.25 and 1812.50. .
- So gold may struggle to move higher
from here unless there is a major event. .
- And there's silver making a new closing
high yesterday, .
- getting pretty close to the 22.50 level,
which is our next target to the upside. .
- Okay, folks, that's all
for Tuesday morning. .
- Looking for higher prices today. .
- Everybody seems to be happy. .
- I hope you have a happy day. .
- Next time you'll hear my voice
is on Wednesday morning. .