- Good Morning, everyone.
Welcome to Friday morning. .
- It's Stephen Whiteside
here from theuptrend.com. .
- In the premarket this morning, stock
index futures are down across the board. .
- Apparently, the market is worried
about European banks now. .
- Dao futures currently down 300 points .
- while crude oil is down nearly $3
in the premarket on Friday morning. .
- Now, let's start off the presentation
just doing a recap on the week. .
- I printed off some weekly charts this
morning just to see where the market was. .
- The DOW, which is still on a weekly sell
signal is up just over three quarters of a .
- % while the TSX having an inside week is
up just a little over a third of a %. .
- And then the Nasdaq, which has been .
- leading the market higher all week is up
1.35 % going into Friday's trading action. .
- Now, with the futures down in the pre .
- market this morning, all of those gains
could be erased on Friday. .
- Now, the Fed meeting has come and gone, .
- and that's what this
week has been all about. .
- Typically, I like to sit on my
hands during a Fed meeting. .
- Back in the 90s when all I did was trade
the S&P 500 futures contract, .
- it was quite exciting to be a short term
trader, but those days are long gone. .
- What happens on a Fed day doesn't usually .
- represent what's going
to happen longer term. .
- A lot of short term gyrations on a Fed .
- day, most of them are in the wrong
direction, and it usually takes the market .
- a day or two to actually digest
what happened during the Fed day. .
- And so here we are coming into
the Fed meeting the other day. .
- We were looking at this chart and I said .
- that I thought things would turn
out more like that than like that. .
- And moving ahead a couple of
days, this is what happened. .
- We certainly had a lot of
volatility on Wednesday. .
- We made a new high before reversing. .
- And yesterday we actually made a
lower low than Wednesday's low. .
- We actually closed higher on the day. .
- The Spider S&P 500 closed up $1.6. It's .
- down about $3 in the
premarket this morning. .
- So we are heading lower this morning. .
- Of course, it's more important
where we close than where we open. .
- And so on Friday, we're looking for a .
- close below 389.97 to give us
a sell signal for the SPY ETF. .
- Now, the TSX is still on a sell signal. .
- We traded up to the upper channel line on .
- Wednesday and then reversed on Thursday,
looking for a close on Friday above .
- $30.04. Last time I checked, Crude oil was
down about $3 in the premarket, and I .
- don't think that's going
to help the TSX on Friday. .
- Now, what worked yesterday? .
- Well, gold miners continued to move
higher on both sides of the border. .
- And what didn't work? .
- Well, anything financial related, US
banks made a new closing low yesterday. .
- Us regional banks also made
a new closing low yesterday. .
- Here are some of the regional banks. .
- There's Zions, there's Comerica, then .
- we've got Key Corp, we've got First
Republic, the one that's been in the news .
- all week, making a new
closing low yesterday. .
- Then we've got Charles Schwab, which
has been in the news all week. .
- Then we've got the only bank here that .
- I've had any experience with, which is
M&T Bank, making a new low yesterday. .
- Looking at the Canadian market, we've got .
- a new closing low for financials, a new
closing low for the banking sector itself. .
- Then the banks with the most US exposure,
of course, are getting hit hard. .
- We've got Bank of Montreal, we've got a
new low and a new closing low for the .
- Royal Bank, and similar
situation for the TD Bank. .
- Just a couple of more bank stocks here. .
- We've got Bank of America
making a new low yesterday. .
- We've got Barclays coming
back down to the recent lows. .
- Credit Swiss really hasn't moved much .
- since it had that announcement
it was being acquired. .
- It's down in the premarket this morning. .
- Big down day yesterday for Deutsche Bank, .
- and it's continuing to
trade lower this morning. .
- We've got ING coming back
down to fill the open gap. .
- And then last up, we've got UBS, which .
- popped the other day on the announcement
it was acquiring Credit Suisse. .
- But I guess investors now realize what
they actually acquired and the stock has .
- come back down and it's
trading lower this morning. .
- Let's finish off with a quick look at
the Nasdaq, which has been leading the .
- market higher this week, had
an inside day yesterday. .
- There's the TSX InfoTech sector
up over 1 % as well on Thursday. .
- It was an inside day for Cloud Computing. .
- It was an inside day for Cyber Security
stocks. Fang stocks had an inside day. .
- Then we saw the social media
stocks continue to move higher. .
- And then, of course, it has been the
Semiconductors that have been leading the .
- Nasdaq higher, making a new
high for this move on Thursday. .
- Last up, the VIX. .
- The VIX is still on a sell signal which is .
- supportive for higher stock
prices, but it moved up yesterday. .
- We've had quite a few wild days
since the banking crisis started. .
- Looking for a close on Friday above 25.79
to give us a new buy signal for the VIX. .
- That, of course, would
be negative for stocks. .
- Notice as the VIX has come down over the .
- past couple of days, the
pros never gave up control. .
- A lot of people have
pointed that out to me. .
- And yeah, that's exactly what it meant to
me as well was that I shouldn't have too .
- much confidence in the up move that we saw
this week coming into the Fed meeting. .
- Okay, folks, that is all for this .
- morning's presentation looking for lower
stock prices at 9:30 this morning. .
- Enjoy the rest of your day
and enjoy your weekend. .
- Next time you'll hear
my voice is on Sunday. .