- 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. .