• Good morning everyone and welcome to Thursday Morning. .
• It's Stephen Whiteside here from .
• theuptrend.com with today's edition of Stock Market Timing Television. .
• In the pre market this morning, stock index futures are mixed. .
• We've got the Nasdaq up around 2% on news .
• from Nvidia, while the Dow and the TSX are currently trading below fair value. .
• So we are looking for a mixed open with a .
• heavy emphasis on the technology sector on Thursday morning. .
• Now we are coming up to a three day long weekend in the US. .
• Markets will be closed on Monday. .
• That doesn't guarantee success, but it .
• certainly takes some downward pressure off the market if the market gets bad news. .
• Now the market is dealing with some good .
• news in the technology sector this morning. .
• It's also seeing some bad news. .
• Some of it is US focused, but we have been waiting for the US to go into recession .
• and it looks like Germany is leading the Europeans into recession right now. .
• So that's happening over in Europe. .
• We certainly expect it to happen in North America in the not so distant future. .
• We just don't know exactly when. .
• Now on Wednesday's trading action, the TSX .
• continued to move lower, gapping lower on Wednesday. .
• We also saw the Dow make a new low for this move. .
• We have the S and P 500 back on a sell .
• signal as of Wednesday's close and the Nasdaq still on a buy signal here. .
• It pulled back yesterday just to tick over half a percent. .
• It is going to be zooming higher at the open. .
• So our semiconductors, semiconductors pulled back into the channel yesterday. .
• They're up in the pre market looking at the Semiconductor ETF. .
• Not as much as you would expect considering that Nvidia, which traded back .
• in the channel yesterday, has popped all the way up over $375. .
• Now it's impossible to tell from sitting .
• on the sidelines what exactly is happening at the moment. .
• Is new money coming in to buy Nvidia .
• shares or is it part of the $9 billion that it's currently short Nvidia? .
• Are those people coming in to cover their losing short positions? .
• Now why were they short the stock? .
• Well, for some reason they believe that .
• Nvidia was overvalued and they were expecting it to come back down. .
• Well if it was overvalued yesterday and they were happy shorting the stock, .
• wouldn't they be more happy today now that the stock is even more overvalued? .
• According to their math, to me it's fuzzy logic. .
• There was no reason to be short this stock on a short term or long term basis. .
• But that's just the way some people operate. .
• So if I owned Nvidia shares this morning .
• and I've taken money off the table last at 312. .
• 50, I may have had an order in at 343. .
• 75 and 375. .
• If you had orders in at those levels, .
• they're going to get filled at the open at the opening price. .
• If I didn't have any orders in, I'd want to sell at least half of my remaining .
• position this morning because it's really a coin flip to figure out whether this is .
• new money coming in or just people shorting. .
• Now, if it's just people shorting, once .
• they've covered their shorts, they have no reason to buy the stock again. .
• So here we are making a critical decision. .
• If you're an Nvidia shareholder, I'd be .
• selling some shares at the open on Thursday morning. .
• Now, here's another headline that may affect the market over the coming weeks. .
• Fitch is putting the US. .
• Credit ratings on credit watch. .
• Other credit rating agencies are probably going to do this over the next few days, .
• and that's probably not going to be good for the stock market or the economy. .
• Now. The US. .
• Dollar index continued to move higher on Wednesday. .
• Bonds continued to move lower. .
• So no change in those major trends. .
• Now, speaking of major trends, let's take a look at commodities. .
• And copper made a new low for this move. .
• So for those people who believe copper is a good global economic indicator, it's not .
• going in the right direction at the moment. .
• And we've got the TSX Global Mining Index and the S&P 500 .
• Metals and Mining ETF both making new lows for this move on Wednesday. .
• Then, looking at the price of gold, it closed lower yesterday. .
• Gold stocks looking at the GDX or the XGD, both traded lower yesterday. .
• The price of silver also moved down more aggressively than the price of gold. .
• And silver stocks also moved down on Wednesday. .
• Looking at the energy sector, the USO. .
• Closed higher yesterday. .
• Gasoline, unfortunately, continued to move .
• higher on Wednesday, and natural gas was up. .
• Natural gas still in the channel, looking .
• for a close on Thursday below 6.79 to give us a new sell signal. .
• And looking at energy stocks in Canada, small pullback inside day on Wednesday. .
• Looking at the US. .
• They closed higher, just under half a percent on the day. .
• Okay, folks, that is all for this morning's presentation. .
• It looks like we're going to have a big pop in the technology sector on Thursday. .
• Not sure if the rest of the market is going to go along for the ride. .
• Enjoy the rest of your day. .
• Next time you'll hear my voice is on Friday morning. .