• Good morning everyone. Welcome to Wednesday morning. .
• In the pre market this morning things are fairly bullish. .
• We've got stock index futures and commodities trading above fair value. .
• So we are looking for some buying at the open on Wednesday morning. .
• Now it is the last day of the month and of .
• course last day of the month usually has a bullish buying bias to it. .
• Today unfortunately is also a Fed day. .
• So the Fed chairman is speaking today and .
• that is certainly going to cause volatility to expand. .
• Now when we talk about volatility .
• expansion, it's actually not just stock market related. .
• It's going to happen in a lot of areas of the financial world on Wednesday. .
• Starting off with the bond market, the 30 .
• year bond has been on a buy signal for a couple of weeks now. .
• That of course has put downward pressure .
• on bond yields and interest rates have been able to pull back over the past .
• couple of weeks and that has certainly helped the stock market move higher. .
• We've also got the US dollar index which .
• is still on a sell signal, closing in the channel once again and so looking for a .
• close above 107.29 for the US dollar index on Wednesday. .
• It's still holding the 200 day moving average. .
• And if it was to break down from here, .
• that would certainly be bullish for stocks. .
• Looking at the VIX, the VIX had a fairly .
• quiet day yesterday looking for a close above 23. .
• 44 on Wednesday to give us a buy signal. .
• Now the major stock market ETFs traded .
• down to the lower channel line yesterday, the Dow Diamonds, the SPY ETF. .
• So a close below those levels on Wednesday would give us new cell signals joining the .
• queues which are back on a sell signal as of Tuesday's close. .
• And then the Ishares for the Russell 2000 and the Ishares for the microcap sector. .
• Both of those generated sell signals on Monday. .
• Now looking at the Canadian market, that was a very quiet day on the TSX. .
• With the Ishares for the TSX 60 having an inside day. .
• So close on Wednesday below 30. .
• 75 would give us a sell signal. .
• Now commodities are holding up fairly well. .
• We did see crude oil dip below 75 the other day but had a quick reversal. .
• It was up yesterday, it's up in the pre .
• market this morning, so that could help the energy sector. .
• We still got natural gas on a buy signal, it hit 7.81 last week. .
• Hopefully we can take out last week's high .
• and head up to 8.59. Now the price of gold is treading water right now. .
• It is still on a buy signal. .
• A closed below 1751. .
• 32 would give us a sell signal on Wednesday. .
• We are still holding the 1750 level. .
• Remember previously we were looking at 1750 as major resistance. .
• It sliced through it in one day and now .
• that major resistance is acting as support. .
• Let's finish off today's presentation looking at a couple of stocks in the news. .
• Both Canadian National and Canadian .
• Pacific have been two of the best performers on the TSX over the past month. .
• Both hit new highs yesterday. .
• And of course they're in the news as we're .
• watching to see if the US can avert a major railroad strike. .
• It doesn't seem to worry investors at the moment. .
• Then we've got Apple seeing fall through .
• to the downside on Tuesday and then we're still waiting for Tesla to generate a buy .
• signal that would happen on Wednesday with the close above 186. .
• 85. .
• Okay folks, that is all for this morning's presentation. .
• Today should be a rather interesting day. .
• I don't see any reason why Chairman Powell should take his foot off the gas and slow .
• down the rising of interest rates, but a lot of people are betting that he will and .
• we'll just have to wait and see what happens. .
• Have a great day. .
• Next time you'll hear my voice is on Thursday morning. .