- Good Morning, everyone, and
welcome to Wednesday morning. .
- It's Stephen Whiteside
here from theuptrend. .
- com with a midweek look at
the Canadian stock market. .
- Well, today's all about the Fed. .
- We are expecting a 25
basis point rate hike. .
- If the Fed deviates from that at all,
that could spark some market excitement. .
- The VIX has been treading water for the .
- past couple of days in
anticipation of the Fed meeting. .
- We need to close above 14.20 to tell
us the market wants to go bearish. .
- If we start closing below 13.55, that .
- would be a sign that the market
wants to continue to move higher. .
- Now, the TSX and the TSX 60 had
a small pullback yesterday. .
- We are up at resistance. .
- If we can take out the April highs, then .
- we can look two lines up
to a new playing field. .
- The TSX 60 has not recovered
as much as the TSX itself. .
- That's probably has a lot to
do with the banking sector. .
- So here we are up at 1234.38. .
- We closed just below that yesterday. .
- If we can take out the recent highs from .
- two days ago, then we're
looking for a move up to 1250. .
- Now, while the TSX and the TSX 60 pulled
back on Tuesday, midcap, smallcap, and .
- microcap stocks were
all higher on the day. .
- Now, copper was up nicely yesterday,
helped put a bid into the mining sector .
- and HudBay led the mining sector
higher up over 8 % on the day. .
- We also had a big up day for Ero
Copper, up over 4 % on the day. .
- Moving on to the energy sector, a
new high for the energy sector. .
- On Tuesday, we saw crude oil
continue to move higher. .
- Crude oil is pulling back a little. .
- We are at resistance of 75 38. .
- If we can break out above that,
then 81.25 comes into play. .
- We've got natural gas stuck at resistance. .
- Our price target is 2.73. We
closed at 2.74 yesterday. .
- If we can take out the at the June
high, then 3.13 will come into play. .
- Then looking at a couple of energy stocks,
we got Crescent Point making a new high on .
- Tuesday, new high for Canadian Natural
Resources while Baytex pulled back .
- slightly, having an inside
day, so a day of indecision. .
- Then moving on to the gold
sector, fairly quiet. .
- We're in the channel, still
on a buy signal here. .
- The price of gold still
trading in the channel. .
- It is up in the premarket this
morning as is the price of silver. .
- So both commodities are
still on buy signals here. .
- Looking at B2Gold, the most actively .
- traded gold stock on the TSX on Tuesday,
it is trading back in the channel. .
- So a close above $4.88 would give
us a buy signal on Wednesday. .
- Barrick is still on a buy signal, and we
also have Kinross still on a buy signal. .
- Then looking at the financials, and this .
- is the sector that probably led the market
lower on Tuesday, you can see the new .
- early warning signal up there
at the top of the screen. .
- And you can see on the right side chart .
- that we did close below
the previous day's low. .
- So that is bearish. .
- Didn't have a lot to do with
the major insurance companies. .
- Manulife was up. .
- Sun Life was up on Tuesday. .
- Had a lot more to do with bank stocks. .
- BMOwas down on the day, did not close .
- below the previous day's low as
Bank of Nova Scotia certainly did. .
- Down 2.61 % on the day, which
is a big move for a bank. .
- And we are back on a sell signal. .
- We also saw weakness in Canadian Imperial .
- Bank of Commerce, which was down
over 1 % back in the channel. .
- So close below $56.94 on Wednesday
would give us a sell signal. .
- We had an inside day for the National .
- Bank, basically closing unchanged
just up two pennies on the day. .
- Then looking at the Royal Bank, yes, we .
- pulled back, did not close below the
previous day's low unlike the TD Bank .
- trading rating down to
the upper channel line. .
- So a close on Wednesday below $83.93 would
give us a sell signal for the TD Bank. .
- Then looking at the InfoTech .
- Index, still on a buy signal here, but
barely Shopify not helping back on a sell .
- signal right now joining BlackBerry and
Lightspeed already on sell signals. .
- What's working? .
- Well, we've got Celestica still on a
buy signal, closing higher on the day. .
- We saw Constellation Software close
slightly higher on the day and a big .
- update for Coveo up over 6 % on the
day, making a new high for this move. .
- And last up, we had Open Text also higher
on the day, up a little over 2 %, making a .
- new high for this move heading
towards the highs from early June. .
- Okay, folks, that is all for
this morning's presentation. .
- Thank you very much for
your time and attention. .
- And of course, if you have any questions,
just reply to this email and we'll be .
- happy to answer them as
quickly as possible. .
- Enjoy the rest of your day. .
- I'll be back a little later to
look at the US stock market. .