• 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. .