• Good morning, everyone, and welcome to Wednesday Morning. .
• It's Stephen Whiteside here from The .
• UpTrend.com. Well, the market got off to a rough start on Tuesday. .
• There were some things that moved higher, .
• including the VIX, which is back on a buy signal as of Tuesday's close. .
• We've got the US. .
• Dollar index sitting right on the edge of a new daily buy signal. .
• And then we've got gold moving higher on Tuesday. .
• Making a new high for this move. .
• Our mathematical target right now is 1843. .
• 75. .
• If we can take out yesterday's high, then .
• 1875 is both our next daily and weekly price target. .
• With the price of gold moving up, we had .
• gold stocks moving up on both sides of the border. .
• There's the GDX moving up. .
• There's the Ishares for the TSX Global .
• Gold Index making a new closing high for this move. .
• Now, it ended last week on a sell signal, .
• and you can see the nice gap open yesterday. .
• So if you were about to sell on Tuesday .
• morning and you looked at the opening bid and ask, you probably waved off that sell .
• signal and just held your position through yesterday's trading activity. .
• Now, Barrick, of course, the big player on .
• the TSX made a new closing high for this move yesterday. .
• And the only gold stock on the S&P 500 .
• actually was the biggest winner on the S&P 500 yesterday. .
• We see Newmont making a new closing high for this move. .
• Our next mathematical target is $50. .
• We're trading just above that in the pre market this morning. .
• Of course, if you trade Newmont, you know .
• we're coming up to the 200 day moving average. .
• We're also coming up to an open gap from back in July. .
• And so the top of that open gap was at. .
• Unlike the major US .
• Indices, the Canadian market was able to .
• move higher yesterday on the back of rising gold prices. .
• Looking at the Ishares for the TSX 60, we need to close on Wednesday above 29. .
• 46. And we've got a nice open gap just above .
• that level that could hold this market in check. .
• Now, going in the opposite direction of .
• gold was crude oil, which is down over 3% yesterday. .
• It is down again in the pre market this .
• morning and may end Wednesday on a sell signal, joining natural gas, which was .
• down over 10% on Tuesday, making a new low for this move. .
• And we saw a big sell off in energy stocks on both sides of the border. .
• There's the Ishares for the TSX 60, making a new low for this move yesterday. .
• Back on a sell signal as of Tuesday's close, also trading below the recent lows. .
• So still projecting lower prices here. .
• I saw some people talk about possible head and shoulders here. .
• You've got the head up here. You've got a left shoulder. .
• You've got a right shoulder. .
• You take the distance from there to there. .
• And that would take us back down to the .
• lows from back in July if this head and shoulders pattern continues to unfold. .
• Right now, we are still projecting lower prices here, down to the $14 level. .
• We'll just have to see how that works out. .
• Now, in the US. .
• Energy stocks held up a little better. .
• They have not broken down below the recent lows. .
• We'll have to see if those lows continue to act as support. .
• Now, the biggest losers that people are .
• talking about on Wednesday morning are Apple and Tesla. .
• There's a new low for Apple. .
• Our next target to the downside, if we start breaking down below 125, is 118. .
• 75. .
• Now, Apple appears to move a lot slower .
• than Tesla, and they are two completely different stocks. .
• The average two range on Apple is 3.66% right now, and you can see how wide the .
• flypaper channel is, which is currently acting as resistance. .
• So any rally here, we would expect to get caught in the flypaper channel. .
• Now, if you compare that to Tesla, first .
• of all, the width of the flypaper channel is dramatically smaller. .
• So, you know it's a much more nimble stock than Apple is. .
• And you can see, mathematically speaking, .
• the average true range is just under 10% at the moment. .
• So being down over 12% on the day is a .
• little more than the average true range at the moment. .
• But it's not that unexpected to see that happen. .
• So when we're looking at Tesla, our next mathematical target is 93, 75. .
• Of course, the market is going to be looking to see if $100 can hold. .
• That's a big round number, and it'll be very interesting, and it'll be very sad .
• for the market if we start breaking down below $100. .
• Okay, folks, that is all for Wednesday morning's presentation. .
• Currently, the Dow is up about 44 points. .
• We do have some economic numbers coming up .
• this morning that could add to the pre market volatility, but so far, things are .
• looking fairly quiet out there on Wednesday morning. .
• Have a great day, folks. .
• Next time you'll hear my voice is on Thursday morning. .
• And at that time, we'll take a closer look at the Canadian stock market. .
• Thank you. .