- Good morning, everyone.
Welcome to Thursday morning. .
- It's Stephen Whiteside here from .
- theuptrend.com. In the Premarket this
morning, things are fairly quiet so far. .
- We've got a while to go
before the market opens. .
- We have been talking about
the risk off trade recently. .
- And if you've ever wanted to see evidence .
- of a risk off trade, well, when Campbell
Soup is one of the biggest winners on the .
- S&P 500, you know you're
in a risk off situation. .
- Now, we've been talking about potential
weakness in the financial sector. .
- We've looked at Credit Swiss, Bank of .
- America and yesterday we saw
M&T bank plunge yesterday. .
- It is still $150 stock. .
- It is not going out of business .
- but certainly some of these stock
financial stocks are seeing some downward .
- pressure because of interest rate
fluctuations at the present time. .
- Now, Carvana, here's a stock that's
down, I think, 96% off the top. .
- And of course, a stock that's down
96% can still fall 42.92% in one day. .
- Anytime you see a chart like this, you
need to walk away and find something else. .
- Of course, if there's a whole sector that .
- looks like this, that could
be a different situation. .
- But if it's just one stock, you know, the .
- market hates it and it's likely not to
ever come back to where it was previously. .
- And that is certainly the case for
Carvana, which is probably going to zero .
- at some point in the
not so distant future. .
- Now, if you've been looking
if you live in the US. .
- And you've been looking to trade in a car
on a new car, you probably want to do that .
- now as opposed to later, because once
Carvana has to liquidate their inventory, .
- there's going to be a huge flood of used
vehicles on the market, and that's going .
- to put downward pressure on
the value of used vehicles. .
- Now, yesterday was a fairly quiet
day for most of the market. .
- It was an inside day for the Dow, inside .
- day for the S&P 500, a little
weaker for the Nasdaq. .
- And the Ishares for the TSX 60
actually had a new low for this move. .
- It was a penny lower
than the previous day. .
- So not technically an inside
day, but pretty close. .
- Now, options traders are
getting a little nervy. .
- They're getting a little
worried about the future. .
- And we saw a new buy signal for the VIX. .
- That tells us that option traders are
starting to feel the pressure, and that's .
- probably not a good sign for
the market going forward. .
- No guarantee of that, of course, but to
see the VIX start to change direction is .
- usually a sign that the stock market
is going to start moving lower. .
- Now, the US dollar index
pulled back a bit yesterday. .
- No change in trend there bonds
continuing to move higher. .
- Huge day for the bond market on Wednesday. .
- A risk off trade that people are taking .
- money out of the stock market and putting
it into the bond market, certainly putting .
- downward pressure on
yields and interest rates. .
- It's not what the Fed wants
to see at the moment. .
- So we may see a battle between the Fed and .
- the bond market coming up when
the Fed meets in a week or so. .
- Then looking at copper prices, copper .
- prices were up yesterday,
still on a buy signal. .
- No change in trend for gold. .
- Gold was up yesterday. .
- Silver was up yesterday. .
- So that of course helped
the mining sector. .
- And we saw the GDX move up nearly 2% and
the XGD was also nearly 2% on the day. .
- Looking at crude oil, we have a new low .
- for crude oil and we're seeing the lowest
gasoline prices of 2022 right now. .
- And we had natural gas move up yesterday.
Looks like it's. .
- Finding support at our weekly daily price .
- target of 5.47 now, just
like the rest of the market. .
- Both Canadian and US energy stocks had a .
- fairly quiet day, both making new lows but
both closing almost unchanged on the day. .
- A couple of stocks we've been watching,
Apple, apple held $140 yesterday. .
- That could be a bullish sign going forward .
- if Apple can continue to
find support at $140. .
- Unfortunately, Tesla was down 3% and
change yesterday, down another 2% last .
- time I looked in the pre
market on Thursday morning. .
- And last up Dollarama. .
- Dollarama, the best performing
stock on the TSX 60 on Wednesday. .
- It ended Tuesday on a sell signal. .
- And so you come in Wednesday morning and .
- you find out it's going to open
up there up at the 81.50 level. .
- And you have a choice. .
- You can either take the cell signal that
would lock in some additional money up .
- there, or you could stand aside
and wait to see what happens next. .
- Often standing aside is a good thing, but .
- also locking in money at that
level is also a good thing. .
- So it is really a judgment call
what you do at that point. .
- But I always tell people no matter what .
- the signal is, you always want to look to
see how the market's opening the next day .
- and just not automatically
throw your order in. .
- And you may decide to not take the buy .
- signal or the sell signal at that
particular time and wait for another close .
- above or below the channel line, depending
on which way the market is going. .
- Okay folks, that is all for
this morning's presentation. .
- Stock index futures are fairly quiet
but slightly positive this morning. .
- Have a great day on Thursday. .
- Next time you'll hear my
voice is on Friday morning. .