- Good Morning, everyone.
Welcome to Wednesday morning. .
- It's Stephen Whiteside
here from theuptrend. .
- Com. .
- Well, yesterday was a fairly volatile
day after the CPI numbers came out. .
- In the Canadian market, it was Healthcare .
- was the winner with
Consumer Discretionary, the loser, and it .
- was the opposite in the US, Consumer
Discretionary was the big winner. .
- Real Estate was the big loser. .
- When it comes to looking at the major .
- indexes, it was Nasdaq
leading the market higher. .
- Now in the premarket this morning, the .
- Nasdaq is actually giving up most of
the gains that it made yesterday. .
- So we are looking for some selling
at the open on Wednesday morning. .
- Now, there were some trend changes
from Tuesday's trading action. .
- If you're a subscriber, you can
see those in the Nightly Report. .
- There's no trend changes for the things .
- that I normally watch
every day, except the VIX. .
- Now, you can see the pros
giving up control here. .
- Unfortunately, I don't think the VIX is
going to be very reliable for the next .
- few days as options are
set to expire on Thursday. .
- So I'm really not going to rely too much .
- on the VIX, and I'm not
going to get overly excited. .
- Some of the other things we're watching .
- did not change yesterday,
such as the US dollar index. .
- You can see the pros are still in control. .
- And while we had a very small pullback .
- yesterday, we're still above the
tether line, so no change there. .
- No change in the bond market with .
- bonds continuing to fall, bond
yields continuing to move up. .
- Pro's still in control there. .
- The price of gold, it closed .
- slightly higher yesterday,
still trading below 1875. .
- It is down in the premarket this morning. .
- And as you can see where
the pros gave up control. .
- And then looking at the price of
silver, no change in trend there. .
- We were down slightly on the day. .
- And I certainly think silver is leading .
- the metals market at the moment, and
it's leading it to the downside. .
- Then looking at crude oil. .
- Now, crude oil is on a buy signal right
now, but the pros and the public have been .
- intertwined, and the pros just
gave up control yesterday. .
- So while
crude oil can stay on a buy signal here, I .
- don't really see the pros
getting too excited about crude oil, and .
- that might not help the
energy sector at the moment. .
- And we'll take a look at energy
stocks in a few minutes. .
- Here's natural gas. .
- The pros are certainly not taking
control, but they're coming back. .
- Maybe over the next week or two, we could .
- get a new buy signal
with an indication that the pros are .
- willing to take control, and
that could help move natural gas up. .
- Natural gas has been floating above the .
- 234 level for the last couple of weeks,
and we're looking to see if .
- the pros will come back, take control,
and start moving natural gas higher. .
- Looking at the DOW
Diamonds, no change from yesterday. .
- Small pullback for the S&P .
- 500, and a small gain for the Nasdaq,
about three quarters of a % on the day. .
- Certainly nowhere near the recent high, .
- but the pros are still in control,
so no sign of weakness there. .
- Similar situation for semiconductors. .
- Then looking at the Canadian
market, things a bit tighter here. .
- Certainly no change in trend
from yesterday's trading action. .
- The Ishares for the TSX 60 were up
a tick on the day, so no change there. .
- Then looking at are financials, starting
off in the US, the pros still in control. .
- They're in control of the banks, they're .
- in control of insurance and
the broker dealers at the moment. .
- Then looking at the Canadian .
- financials, Canadian banks,
they're holding up very well. .
- When we move on to commodities, you can .
- see energy stocks starting off with
the ishares for the TSX Energy sector. .
- You can see the pros in the public almost
touching at the moment. .
- So no upward momentum in the Canadian .
- market and certainly no upward momentum
in the US market at the moment. .
- Unfortunately, I don't think .
- energy stocks are going to be able to go
much higher from here unless the pros .
- want to become more aggressive
and with commodities trading lower in the .
- pre market on
Wednesday, I think that we may start to .
- see some sell signals in the energy sector
joining sell signals in the gold sector. .
- There's the .
- GDX and the XGD.TO. You can see the pros
not in control at the moment, so not .
- expecting any upward momentum
in the precious metal stocks. .
- Then last up, the
stocks I'm watching this week. .
- Apple was down yesterday ever so much. .
- Pro is still in control. .
- It doesn't look like things
are going to change there. .
- It doesn't look like things are
going to change for Microsoft. .
- Microsoft still holding up fairly well. .
- And you can see the Shopify, even though .
- it's on a sell signal, it came
back into the channel yesterday. .
- So on the TSX, we're looking for a close .
- above 67.84 to give us a new
buy signal on Wednesday. .
- If you were to take that buy signal, of .
- course, that would be considered a high
risk buy signal as we are up at the top of .
- the panic zones and projecting
lower prices at the time. .
- So you could get a
continuation trade here. .
- I wouldn't expect it to go much
higher, but it is certainly possible. .
- We see money come back into Shopify .
- as the other tech stocks are
still holding up, such as Tesla. .
- And you can see the pros
inching higher yesterday. .
- The stock was up
sharply yesterday, it was up over 7 %. .
- So I guess the more we talk
about it, the more it goes up. .
- But there it is. .
- We need to close on Wednesday below
184.77. Not expecting that to happen on .
- Wednesday, but it could certainly
happen on Thursday or Friday. .
- Okay, that's all for this
morning's presentation. .
- Stock index futures are
still trading lower. .
- Looking at the VIX, we are back on a sell .
- signal as I mentioned, and
the pros have given up control. .
- The only problem here is we're
still in a very tight range. .
- So yeah, they can muck about in this .
- range, but if
the stock market is going to move higher, .
- then we need it to take
out this recent low. .
- If the stock market is going to move .
- lower, we need the VIX to
take out this recent high. .
- So we're still in the middle of this range .
- and I don't think a new sell signal
in the VIX is that conclusive that the .
- market is really going
to go higher from here. .
- With options expiring this week, a lot
of hedges are going to be taken off. .
- They're going to be moved to other months. .
- There's just a lot of mess going on here. .
- And so it's very hard to
get a good feel of where the market is .
- going to go next based
just on the VIX alone. .
- Okay, folks, we're looking for some
selling at the open on Wednesday morning. .
- Have a great day. .
- Next time you'll hear my voice is .
- on Thursday morning. you. Bye. .