- 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. .