- Good morning everyone and
welcome to Tuesday Morning. .
- It's Stephen Whiteside here from The .
- UpTrend.com. Well things are fairly
quiet out there this morning. .
- Stock index features
are slightly above fair .
- value with the Nasdaq
leading the market higher. .
- But so far it really looks like., .
- We are going to have a quiet
open at 9:30 Tuesday morning. .
- Now looking at Monday's
trading action we've .
- got the VIX closing in the channel. .
- Things would change on Tuesday
with a close above $20.01. .
- Now looking at the US dollar index, and a
lot of people are watching this closely, .
- because if we go back in
time and I'll just leave my .
- mouse in the middle of the screen here .
- right at when things started to change for
the US dollar index, that is also the time .
- and place when the stock
market started to move up. .
- So a lot of people are looking at
the connection and looking at the .
- fact that the US dollar index is back on a .
- buy signal and that could
be negative for stocks. .
- It's certainly negative for other
currencies with the Euro and the Japanese .
- yen both continuing to
move lower on Monday. .
- Still leaving my mouse in
the middle of the screen. .
- You can see when bond yields started to .
- move down that helped the
stock market move higher. .
- And now look at the right hand side of the .
- screen and you can see that bond yields
have moved up over the past couple of days .
- and again that could be
negative for stocks. .
- What worked yesterday? .
- Well anything interest related did move
up yesterday, but not in a big way. .
- Utilities and insurance
stocks did fairly well. .
- Compared to the rest of the market. .
- Which was negative on Monday. .
- Now in the Canadian market the big .
- loser was base metals and you can see that .
- first quantum was the big
loser on the TSX 60 on Monday. .
- Then looking at the US it
was oil and gas explorers. .
- Those were the big losers
on Monday in the US. .
- Now looking at the Nasdaq 100 it is .
- trading higher in the
Premarket this morning. .
- But notice that for the past two days .
- we've actually closed below
the previous day's low. .
- So that's a bearish chart pattern there. .
- We did fill the open gap and that is now .
- closed and we're still trading
above the upper channel line. .
- So nothing has really broken yet, but
we may be setting up to continue. .
- To move lower from here. .
- It was the semiconductors that pulled down
the Nasdaq yesterday and intel was the big .
- loser which is a Dow stock, a
Nasdaq stock and an S&P 500 stock. .
- So a close blow 28 42 would give us
a sell signal for intel on Tuesday. .
- And you can see that we drove up to the .
- highs from back in November
and then quickly reversed. .
- Now I don't want you to be trading intel. .
- You can trade Advanced Micro Devices which .
- did pull back yesterday down over
2% on the day, closer to 3%. .
- And then you could also trade Nvidia. .
- Those are much better stocks to trade. .
- Nvidia very steady on Monday, down just .
- $0.11, which is pretty
good for a $200 stock. .
- Let's finish off looking at commodities. .
- And there were no trend changes on Monday .
- for the USO, which made a new low before
reversing and closing higher on the day. .
- So that could be the bottom for crude oil. .
- We'll just have to wait and see. .
- That's also a similar set up for .
- gasoline, which made a new low
yesterday before reversing. .
- And then natural gas, not a
lot of movement yesterday. .
- We're trying to put in a low here, but
there isn't enough upward momentum to .
- really declare that anything
new is happening just yet. .
- Then looking at the metals we had, gold .
- dropped sharply on Friday inside day
yesterday for the GLD, new low for .
- palladium, new low for platinum,
and a new low for silver on Monday. .
- So certainly no new trend changes
to talk about on Tuesday morning. .
- Okay, folks, that is all for
this morning's presentation. .
- So far.
It looks like we're going to have a fairly .
- quiet open when the market
opens at 930 Tuesday morning. .
- Have a great day. .
- Next time you'll hear my voice
is on Wednesday morning. .
- Thank you. .