• Good morning everyone and welcome to Wednesday Morning. .
• It's Stephen Whiteside here from the .
• uptrend.com in the Premarket this morning things are fairly quiet. .
• Stock index futures and commodities are higher. .
• Dow futures currently up 50 points. .
• Now Wednesday should be a fairly quiet day. .
• The market is waiting for CPI numbers to come out on Thursday morning and I think .
• volatility will start to expand after those numbers come out. .
• Here's an interesting chart I saw this morning. .
• Small business optimism, it dropped in December. .
• What's interesting about that is the fact .
• that we're down at levels that we haven't seen since back at the Pandemic lows. .
• And you can see the overall trend has been down for the last couple of years. .
• So boots on the ground, bottom up .
• analysis, it's not looking good out there for 2023. .
• Now if you've checked the news this morning, you've probably heard that the US .
• is having trouble with its air traffic control system this morning. .
• And that part of the market has been doing fairly well over the past few days. .
• Looking at the Jets ETF, and then looking .
• at Travel Technology and then looking at the airlines there's. .
• American Airlines having a new closing high for this move on Tuesday and even .
• Southwest has been able to get back on a buy signal over the past couple of days. .
• So air traffic control system down, that .
• might not be good for these stocks on Wednesday. .
• Then looking at the SPY S&P 500 on Friday, .
• the market had a nice big pop and ended the day with a buy signal. .
• We were looking for fall through to the upside on Monday we got that intraday but .
• then going into the close we gave it all up and actually closed lower on the day. .
• So the high for that day was 393. 70. .
• So you need to put a pin in that number. .
• Yesterday we did close higher on the day but did not take out that previous high. .
• So we're looking to see if we can do that on Wednesday. .
• That would certainly be helpful for the Bullish case. .
• If we could take out Monday's high, that bearish reversal signal is still in play. .
• It we need to close above Monday's high to take out that bearish reversal signal. .
• Otherwise that is the high for this particular move. .
• Now we're stuck at our price target of 390. .
• 63. So if you had an order in to sell that has .
• been filled over the past couple of days, if we can break out above Monday's high .
• then 400 is a nice target to the upside as a big psychological round number. .
• But you can see that back in November and .
• December we peaked just above the 406.25 target. .
• Looking at the Canadian market we had similar situation. .
• Nice big update on Friday, left with a buy .
• signal, looking for fall through to the upside on Monday. .
• Again, we had it intraday and then gave it all up going into the close. .
• So we're looking to see if we can take out 30. .
• 56 as our next target to the upside. .
• You can see that 30. .
• 47 is holding us in check right now. .
• If we can take that out, then 30. .
• 86 would be our next target to the upside for the ishares for the TSX 60. .
• Now the VIX is back on a sell signal as of Friday's close. .
• That would change on Wednesday with a close above 22. .
• 80. Now the problem with the VIX and the .
• problem the VIX has had for the past couple of months is in early November we .
• started to trade in to a range below 25 and above 18.75. We're really not going to .
• know which way the market wants to go next long term until we break out of this .
• range and it doesn't look like we're going to do that on Wednesday. .
• Now a couple of stocks I watched very closely. .
• I'm still short Apple. .
• That has not changed. .
• That would change on Wednesday and caused me to take action on Thursday morning. .
• If we get a close above 131. .
• 33. .
• For Tesla, we're still looking for a close above 122. .
• 70 on Wednesday to give us a buy signal. .
• And we had an inside day yesterday for .
• Microsoft, looking for a close on Wednesday above 235. .
• 86. .
• So far that open gap is holding us in check. .
• Let's finish off this morning's .
• presentation with a quick look at commodities. .
• Well, if small business optimism is going down, copper is going up. .
• And if that is a global economic .
• barometer, it has been making higher highs and higher lows recently and that is .
• bullish for copper and a lot of the mining stocks. .
• Gold made a new closing high yesterday. .
• It's still stuck at 1875. .
• If we can take out Monday's high, then 1906.25 is our next target to the upside. .
• Going in the other direction unfortunately is silver. .
• Not very quickly, but we've been down the last couple of days. .
• The pros are starting to give up control of silver. .
• That could put a damper on Gold's movement to the upside. .
• We'll just have to wait and see. .
• Now when you look at this chart, you can see how flat the public line is. .
• The public doesn't have a lot of influence over the silver futures contract. .
• It does certainly have an influence on the silver ETFs. .
• And you can see the public is a lot more .
• active in the ETF market than they are in the futures market. .
• And so that's why you get the big difference between that line representing .
• the public and that line representing the public. .
• And as you can see, the public is starting to take control of the price of silver .
• right now as the pros start to exit the market. .
• Looking at crude oil. .
• We had an inside day yesterday. .
• Things would change on Wednesday with a .
• close above 75 72 and we had a new closing low for natural gas on Tuesday. .
• Looking to see if that turns around. .
• It is up slightly in the pre market on Wednesday morning. .
• Okay, folks, that is all for this morning's presentation. .
• I'm off to donate blood this morning. .
• I hope you've got an appointment booked soon. .
• There is quite a shortage of blood at the moment. .
• Have a great day. .
• Next time you'll hear my voice is on Thursday morning. .
• Thank you. .