• Good morning everyone and welcome to Wednesday Morning. .
• It's Stephen Whiteside here from .
• TheUpTrend.com. In the pre market this morning stock index .
• futures and commodities are trading above fair value. .
• So so far it looks like we're going to see .
• some buying at the open on Wednesday morning. .
• We do have economic numbers coming out at .
• 8:30 this morning that could sway the market. .
• So we'll just have to wait and see. .
• We still have the VIX on a sell signal that support of for higher stock prices .
• that would change on Wednesday if we were to close above $14.20. Now we've got the .
• Dow trading up at summer highs, we've got the S&P 500 trading up at summer highs and .
• we've got the Nasdaq trading up at summer highs. .
• So this is a time and place where we could take a break. .
• We've got the TSX pulling back a bit this .
• week and you can see that we moved up and filled an open gap and started to pull .
• back from there and so we have not been able to get back up to the summer highs. .
• Of course the US market has those big cap technology stocks. .
• The Canadian market is much more commodity .
• focused and so the selling in energy stocks have not helped and now we're .
• getting some selling in the banking sector. .
• So we are expecting a little bit of a pullback here. .
• If we look at the percentage of stocks currently trading above their 20 day .
• moving average on the S&P 500 you can see that we're currently up at the top of the .
• range and this is where the market either pulls back or takes a break. .
• I think we're going to have a little bit .
• of a pullback in the first week of December. .
• We'll just have to wait and see. .
• If we look at the percentage of stocks on .
• the S&P 500 currently trading above their 200 day moving average. .
• You can see we moved up to our first target and we talked about this a couple .
• of weeks ago that we may be able to move up to this level and this is the time and .
• place where we may see the market pull back. .
• But given the seasonality of the time of .
• the year we are looking for a continued move higher and you can see that the .
• market has pulled up to those levels before. .
• So what we're talking about here is we're .
• looking for the market rally to broaden out. .
• We've talked a lot about that. .
• We've talked about the semiconductors and micro cap stocks, small cap stocks. .
• We're looking for those to move up as well as those big cap technology stocks that .
• have been pulling the market higher and so that's what we're waiting for. .
• But wouldn't be surprised if we see a .
• little pullback in the first week of December and of course we're expecting to .
• see more money come into the market this week heading into month end. .
• Now bonds continue to move higher. .
• That's putting downward pressure on bond yields. .
• That's supportive for higher stock prices, .
• and it may be supportive for higher precious metals prices. .
• As the price of gold made a new high for this move, as did the price of silver. .
• Silver is coming up to those summer highs right now. .
• The best performing stock on the S&P 500 yesterday was newmont. .
• If we go back to last week, you can see we were looking up two lines 39.06 and 40. .
• 63. .
• Well, both of those targets were hit yesterday. .
• So if you had orders in at either of those two, they got filled on Tuesday. .
• Now we're looking up, seeing if we can .
• break out above the September high up to 40 219. .
• And the best performing stock on the TSX .
• 60 on Tuesday was Barrick up 4.97% and hit our next target of 23. .
• 44. Our next target to the upside is 24. .
• 22. .
• And so we've got a new high for this move, for GDX, for the XGD, and for the SIL. .
• So gold and silver stock continuing to move higher on Tuesday. .
• Okay, folks, that is all that I wanted to cover this morning. .
• Looks like the market wants to continue to move higher on Wednesday. .
• Have a great day. .
• Next time you'll hear my voice is on Thursday morning. .