- Good Morning, everyone, and
welcome to Wednesday morning. .
- It's Stephen Whiteside
here from theuptrend.com. .
- In the premarket this morning,
things are fairly quiet. .
- Stock index futures trading
right around fair value. .
- There's a little bit into
the technology sector. .
- Once again, commodities are mixed with .
- gold down while crude oil is slightly
higher on Wednesday morning. .
- Let's start off this morning
with a little housekeeping. .
- On Thursday, I'm going to be traveling, so .
- I'm not going to be around in
the morning to do a video. .
- The next time you'll hear my voice
is going to be on Friday morning. .
- Now, yesterday we saw the
VIX made in make a new low. .
- Overall, it was a fairly quiet
day for the big cap indices. .
- For other areas of the market, it was a .
- little more exciting, but there's
the VIX making a new low. .
- Looking for a close on Wednesday above .
- $17.64. We also saw the major VIX
ETFs also make new lows yesterday. .
- Nobody's trying to front run a big
move up in the VIX at the moment. .
- Then looking at the DOW, very quiet
yesterday, just up a couple of pennies. .
- Similar situation for the
S&P 500 and for the Nasdaq. .
- The Nasdaq was slightly lower
yesterday, no big deal. .
- Nobody's overly concerned about that move. .
- Where we did see money flow was into the
midcap, small caps and microcap stocks on .
- Wednesdays, and that was true
on both sides of the border. .
- Now, the i shares for the TSX 60 closed .
- above the upper channel line once again,
still having trouble with that open gap. .
- Then when we look at the midcap, small
caps and microcap stocks, they all moved .
- up yesterday, not at the same rate that
they did in the US, but they did move up. .
- And it's nice to see the market focus on
other stocks besides those big cap stocks. .
- Now, we've talked about the seasonalities .
- of the market many
times over the past month. .
- If we go back to 2022, you can see the S&P .
- 500 came into June already on a buy signal
and then rolled over right about now. .
- That's also true for the Nasdaq and
for the iS shares for the TSX 60. .
- So all of them recovered quickly but
then continued to make a lower low. .
- So that's what happened in June of 2022. .
- Now, yesterday, the big winner in North .
- America was regional banks, and that
helped US banks overall move up yesterday. .
- Comerica was the big
winner on the S&P 500. .
- Fifth Third was also up at the top
of the winners list as was Zion. .
- So the regional banks are
still making a comeback here. .
- Then looking at Canadian financials,
they were up on the day. .
- Canadian banks were up on the day
as well, but no change in trend. .
- Now, 1 Canadian Bank we should be
looking at is Bank of Montreal. .
- It is back on a buy signal. .
- It held previous support at 112.50 .
- and now it's starting to move back
up on a buy signal right now. .
- The major area resistance, well, 118.75
and the 120 level certainly is a short .
- term resistance, but then you can move up
to the 121.88 level and there's lots of .
- resistance up there from
the month of April. .
- Not a lot of space to move here, but it .
- would be an incredibly bullish sign if the
Bank of Montreal were able to take out the .
- resistance from back in
April up there at 12188. .
- Now, looking at what worked yesterday on .
- the Canadian market, it was InfoTech, and
that had a lot to do with Shopify, which .
- had a big update and is
back on a buy signal. .
- Now it's important to note that
we're coming up to resistance here. .
- 87.50 is our next mathematical target. .
- The high last month was 87.53. So we're
getting pretty close to that level. .
- If we can take that out, then the
$100 would certainly come into play. .
- Now, the only problem here is, of
course, we're currently ranked at 10. .
- So this is a high risk trade. .
- We look for low risk opportunities, and .
- you can see a couple of them there where
we did see some selling that brought us .
- down to the bottom of the panic zones,
and then a pressure zone was forming. .
- That tells us that a lot of the downward
pressure has already left the market. .
- So people that hate the stock, that want .
- to unload the stock, probably
have already done so. .
- We're not seeing that
situation develop right now. .
- We did have a very small pullback. .
- It wasn't to the bottom
of the panic zones. .
- No pressure zone was formed. .
- So yes, we do have a new buy signal,
but it is a high risk buy signal. .
- Now note that we gapped higher and the top .
- of that gap was up at a high from
back at the start of the year. .
- And so that's a major area
of potential support. .
- If that, of course, breaks on the way back .
- down, then we wouldn't be surprised to
see a move down into the lower $60 area. .
- And of course, you see the bottom
of the open gap there around $65. .
- That would certainly be a
reasonable target to the downside. .
- In the US, it was all about financials. .
- We've talked about what worked
yesterday, what didn't work. .
- Well, a couple of stocks headed lower
yesterday in the financial sector, and one .
- of them is the CME group, which is
a stock that I'm currently long. .
- I wasn't overly excited
about this opportunity. .
- I really thought it was part of
the blow off top from last week. .
- But yeah, we popped and you can
see that we've started to reverse. .
- We haven't generated a sell signal. .
- We're still trading above the upper .
- channel line, so no reason to
take action on Wednesday morning. .
- Let's finish off looking at commodities. .
- And we saw crude oil trade
in the channel yesterday. .
- It's up a little in the pre market this .
- morning, not enough to
give us a buy signal. .
- Then looking at natural gas. .
- Natural gas was higher yesterday, still
trading below the lower channel line. .
- Then looking at copper. .
- Copper had an inside day yesterday, .
- closing just a
little tiny bit higher on the day. .
- Then looking at gold. .
- Gold is still in the channel looking for a .
- breakout above
1995 to give us a buy signal. .
- And of course, there's psychological
resistance at the $2,000 level. .
- And then silver is still on a buy signal
trading in the channel yesterday. .
- It closed below 23.33 would give
us a sell signal on Wednesday. .
- And then last up, unfortunately for .
- barbecue season,
live cattle continued to move higher. .
- So that, of course, is going to put
pressure on meat in the grocery store. .
- Okay, folks, that is all for
this morning's presentation. .
- Looks like we're going to have a fairly
quiet open on Wednesday morning. .
- Again, I won't be in on Thursday. .
- The next time you'll hear my
voice is on Friday morning. .