- Good morning everyone.
Welcome to Tuesday morning. .
- It's Stephen Whiteside here from .
- theuptrend.com in the
pre market this morning. .
- Things are very, very quiet out there. .
- You'd think we were waiting for the Fed .
- meeting but no, that's not
what's happening today. .
- Things are just overly quiet in
the pre market on Tuesday morning. .
- Let's start off this morning's .
- presentation looking at the VIX and
the VIX is still on a sell signal. .
- That of course is is historically
supportive for higher stock prices and .
- coming into month end that's what
you kind of expect to happen. .
- At the same time there's these new zero .
- day options that are out there and a lot
of people are concerned that that's going .
- to affect the usefulness
of following the VIX. .
- And I don't totally agree that is .
- certainly possible, but we need to give it
some time to see how the VIX correlates .
- with the movement of the stock market .
- moving on to currencies, the US dollar
index had an inside day on Monday. .
- Big pullback yesterday for bonds and that .
- of course put upward
pressure on bond yields. .
- Then we've got the price of gold pulling
back yesterday I was down over $23. .
- It's up $6 in the pre
market on Tuesday morning. .
- Silver also had a small
pullback yesterday. .
- Crude oil had a nice big update and it's
up again in the pre market this morning. .
- That certainly helped energy
stocks move up on Monday. .
- Natural gas unfortunately not
going anywhere at the moment. .
- Down again on Monday. .
- Then looking at the major
stock market index ETFs. .
- We had the Dow Diamonds trade up to
the upper channel line yesterday. .
- A close above 324. .
- 80 would give us a new
buy signal on Tuesday. .
- Then looking at the SPY, we're
looking for a close above 397. .
- 30. .
- Then looking at the QQQ'S,
still on a buy signal. .
- Things would change on Tuesday
with a close below 301.86. .
- Semiconductors pulled back again
yesterday so down two days in a row. .
- Looking for a close on Tuesday below 197. .
- 86. .
- Then we're looking at the Ishares for
the TSX 60 trading up in the channel. .
- A close above 29. .
- 95 would give us a buy signal on Tuesday. .
- Now we certainly saw some interesting .
- trading in the financial sector
over the last couple of days. .
- Apparently a lot of people went home short .
- the financial sector on Friday expecting
or anticipating some bad news to come out .
- over the weekend, maybe another
bank failure, who knows? .
- But what happened was there was no new bad .
- news over the weekend and so those
overnight short positions got covered at .
- the open on Monday morning and that
caused the market to gap higher. .
- Whether you're looking at the overall
financial sector, you're looking at banks, .
- you're looking at insurance
companies or broker dealers. .
- They all gapped higher. .
- And it was also true for the Canadian .
- market with Canadian financials, canadian
banks also gapping higher on Monday. .
- I would expect the gains that we saw .
- yesterday to dissipate
over the next few days. .
- There's certainly no rush to get back into
the financial sector on Tuesday morning. .
- Now looking at energy stocks, they got a
nice pop yesterday on the back of the .
- rising crude oil prices and that
happened on both sides of the border. .
- For the SPY Energy ETF, we're
looking for a close above 80. .
- 46 on Tuesday to give us a buy signal. .
- Now, gold stocks moved down ever so .
- slightly yesterday on
both sides of the border. .
- So no major rush to get out of the gold .
- sector even with that pullback
in the price of gold yesterday. .
- Let's finish off today's presentation. .
- Looking at those big cap tech stocks that .
- are helping hold the
market up at the moment. .
- Now, Apple pulled back just under $2 .
- yesterday, didn't close below
the previous day's low. .
- I was hoping that Apple
would have hit 162. .
- 50 by now, but has not done so. .
- So that's kind of disappointing. .
- Then we've got Microsoft
pulling back yesterday. .
- Both stocks are still trading above the .
- upper channel line, so not
overly concerned just yet. .
- Shopify, on the other hand, has dipped .
- into the channel for the
past couple of days. .
- Shopify on the TSX needs a close below 59
63 to give us a sell signal on Tuesday. .
- And then looking at Tesla, tesla
was up a dollar 40 yesterday. .
- So not a big move for Tesla on Monday. .
- Looking for a close below 183 41 to
give us a sell signal on Tuesday. .
- Okay folks, that is all for
this morning's presentation. .
- It's extremely quiet
out there this morning. .
- You'd think the market was
waiting for something. .
- Consumer confidence numbers
come out at 10:00 a.m.. .
- This morning. .
- I'm not sure the market is holding
its breath for those, but who knows. .
- So we are going to start off on a very
quiet footing on Tuesday morning. .
- Enjoy the rest of your day. .
- Next time you'll hear my voice
is on Wednesday morning. .