• Hey, good morning everyone and welcome to Friday Morning. .
• It's Stephen Whiteside here from the .
• uptrend.com in the pre market this morning stock index futures are above fair value. .
• So we are looking for a little buying at the open on Friday morning. .
• Now yesterday was a very bad day for the .
• stock market and we'll start off with a couple of charts. .
• US dollar index kept moving higher yesterday. .
• At the same time bond yields continue to .
• rise across the spectrum from five year to 30 year. .
• They all moved up on Thursday. .
• Now Thursday was a bad day for the stock .
• market even though the headline might not tell you. .
• So we are coming up to a three day long weekend. .
• We are coming up to month end. .
• Both have a bullish bias. Seasonally. .
• This is also a good time to be in the stock market. .
• You can see seasonally, we usually get a .
• rally into the first week of June and then a pullback into the end of June. .
• And of course the end of June is the end .
• of the quarter and then we get the summer rally. .
• That's historically what happens. .
• So seeing some buying coming into Friday .
• morning before a long weekend, not that unexpected. .
• Of course we do have the debt ceiling negotiations hanging over our heads and .
• that could actually crash the stock market if things do not work out. .
• Now while most of the stock market was .
• going down on Thursday, nvidia was leading the tech stocks higher once again. .
• And of course this is one of those big cap .
• tech stocks that has been keeping the market afloat in 2023. .
• And so yesterday we came in already at the .
• top of the panic zones and so we saw a panic buying yesterday. .
• A lot of that was probably short covering. .
• I think they had over $9 billion worth of Nvidia stock shorted going into yesterday. .
• And if you were short Nvidia for some .
• strange reason, I have no idea why you would be short Nvidia. .
• Apparently some people think the stock is overvalued. .
• Well if it was overvalued on Wednesday then it is certainly overvalued today. .
• And so here we are making a new high for Nvidia. .
• Where did we get to? .
• Well, if we look at the weekly chart from last Friday, we knew that 343. .
• 75 is where the stock topped out in 2021 .
• and then above that was 375 on the monthly chart. .
• Our next price target was 375. .
• We were stuck at 312 50. .
• We got to lock in profits there and then we popped yesterday. .
• So if you had an order in at 343. .
• 75 or 375, they both got filled at the open which was up at 385. .
• 23. .
• So congratulations to anyone who locked in some profits yesterday on Nvidia. .
• I would be a seller of Nvidia if we .
• started to break down below yesterday's low. .
• Obviously our lower channel line is currently at 301.76 and you don't want to .
• give up all of those profits if we're up over 375. .
• So yesterday's low was 366. 35. .
• I would liquidate the remainder of my .
• position if Nvidia started trading below that level over the next few days. .
• Then looking at the VIX, the VIX pulled .
• back yesterday looking for a close on Friday below 17.07. .
• Then looking at the Dow, we made a new low yesterday. .
• We made a new low for the TSX. .
• The S&P 500 came back. .
• Now we had a sell signal from Wednesday's close. .
• You come in on Thursday morning, you see we're going to open at 414. .
• 74. So you can wave off that sell signal. .
• Or if you took the sell signal, you got to sell at a higher level. .
• So congratulations there. .
• And then of course, the Nasdaq made a new high yesterday. .
• We saw a big move up for semiconductors. .
• Of course Nvidia being a semiconductor. .
• Now the rest of the market, well, looking .
• at Canadian small caps, they've started to break down below the March lows. .
• We've got micro caps moving down yesterday in the US. .
• Mid cap stocks are sitting right at the lower channel line. .
• So any lower close on Friday would give us a sell signal for the Ishares for the .
• Russell 2000 and the Ishares for the microcap sector. .
• We are back on a sell signal as of Thursday's close now. .
• Big move down yesterday for Consumer staples. .
• Retail stocks trading below the March lows. .
• Big down day yesterday for Healthcare. .
• Biotechs back on a sell signal as of Thursday's close. .
• Big down day for pharmaceuticals. .
• Then we had materials, metals and mining making new lows. .
• Utilities, big down day for utilities. .
• So you can see that a lot of the market .
• was heading in the opposite direction of Nvidia. .
• Then looking at the Canadian market, of .
• course it was all about financials and bank stocks. .
• We had bank earnings out all this week and .
• that's put downward pressure on the financial sector. .
• Then energy stocks pulled back yesterday, still on a buy signal. .
• That would change on Friday for the index with a closed blow 223. .
• 16. .
• Then looking at gold stocks, they continued to move lower. .
• So did global mining stocks and material stocks. .
• All made new lows yesterday. .
• We saw a new closing low yesterday for Canadian real estate. .
• Then we got telecom stocks down 1.77%. Big down day for the telecom sector. .
• And then last up we had utilities making a new low for this move. .
• Let's finish off today's presentation taking a look at commodity prices and .
• copper held the previous day's low yesterday. .
• I'd get more excited if we closed above the previous day's high. .
• There's the price of gold making a new low. .
• The price of silver making a new low. .
• Crude oil pulled back into the channel. .
• A close below 69. .
• 56 on Friday would give us a sell signal. .
• And there's natural gas coming right back .
• down and sitting on the lower channel line. .
• So any lower close on Friday would give us a new sell signal. .
• Okay, folks, that is all for today's presentation. .
• Looking for a higher open on Friday. .
• Going into a three day long weekend. US. .
• Markets will be closed on Monday. .
• Canadian markets will be open on Monday, but we're not going to post any charts. .
• Whatever happens to the Canadian market on Monday is kind of irrelevant since there's .
• not going to be any adult supervision from the US. .
• Market. .
• And we'll find volumes down probably about 40% on Monday. .
• Enjoy the rest of the day. .
• Next time you'll hear my voice is on Sunday. .