• Hello, everyone, and welcome to Friday morning. .
• It's Stephen Whiteside here from theuptrend.com. .
• In the premarket this morning, stock index .
• futures and commodities are above fair value. .
• So far, it looks like everybody's happy. .
• Now, December options expire this .
• afternoon, and supposedly there's a record number of options about to expire, and .
• that could certainly add to some afternoon volatility, but I'm not sure it's going to .
• dramatically change the direction of the market. .
• Looking at the VIX, we're looking for a close on Friday above 13.14. Of course, if .
• the VIX starts trending higher at some point, you have the opportunity to buy the .
• VIX using ETFs, whether it's the VXX in New York or the HUV in Toronto. .
• Both of them will move higher with the VIX .
• over time, and you can make money when volatility does start to move higher. .
• Now, it certainly looks like the torch has finally been passed. .
• We saw the Nasdaq-100 actually closed slightly lower yesterday. .
• Some of those big cap tech stocks we've .
• been following, such as Microsoft were down on the day over two %. .
• At the same time, the Equal Weighted Nasdaq continued to move higher. .
• Those Next Generation, the next 100 stocks were up on the day. .
• We saw the Russell 2000 up nearly three %. .
• We saw microcap stocks up nearly two %. .
• And that was on both sides of the border. .
• Mid-cap stocks in Toronto, small-cap stocks in Toronto, and those micro-cap .
• stocks in Vancouver were all up on the day. .
• Now looking at the TSX, the iShares for the TSX 60 made a new high for this move. .
• You can see, like many charts right now, we're up at the top of the Panic Zones. .
• That's not the time to be a buyer. .
• That's the time to look for selling opportunities. .
• At some point, we're going to pull back .
• and we're going to see if we can hold the uptrend. .
• If we don't hold the uptrend, then of .
• course, our downward projections would come into play. .
• But right now, we're still looking higher. .
• There's no reason to look down at the present time. .
• Now looking at the bond market, the TLT, .
• the XBB, all continue to move higher on Thursday. .
• That, of course, puts downward pressure on bond yields. .
• The market is way ahead of the Fed, reducing interest rates next year. .
• They're doing it now. .
• It's what the market is doing ahead of the .
• Fed, so they don't need the Fed to do this. .
• You can see that rates are falling, yields .
• are falling, and that's supported for higher stock prices. .
• That put downward pressure on the US .
• dollar index, which continued to move sharply lower on Thursday. .
• We saw currencies such as the Euro and the Canadian dollar move sharply higher. .
• Now it looked like everything was moving up on Thursday, including crude oil. .
• We're looking for a close on Friday above .
• 73.26 to give us a buy signal for crude oil. .
• And it looks like crude oil might actually .
• end the week higher, which hasn't happened in quite a while. .
• We're holding 68.75 on the daily chart. .
• That, of course, is also a weekly area of support. .
• And so far, that's a holding. .
• We also saw some buying in natural gas on .
• Thursday, and that, of course, can help energy stocks. .
• We saw energy stocks in Canada up 1.69% back into the channel. .
• Big up move for US energy stocks up nearly 3% on the day. .
• Then looking at gold, gold continued to .
• move higher on Thursday, and so did silver. .
• Gold and silver stocks also continue to move higher. .
• But in both cases, whether you're looking .
• at the GDX or the XGD, they moved up to previous resistance and pulled back. .
• I'm not sure we're going to be able to get .
• through that level of resistance at the present time. .
• We'll have to just wait and see. .
• Then the copper miners actually had a huge .
• day yesterday, gapping higher, up 3.37%. You don't see that very often. .
• Okay, folks, that's all I really wanted to cover this morning. .
• A lot of stocks are hitting new highs. .
• Of course, what we want to do right now is make sure we're selling into strength. .
• If you've been systematically taking money .
• off the table as we've been moving higher, congratulations. .
• If you haven't done that, then you should consider doing that. .
• This is not the time to be a buyer. .
• It's a time to rejoice and be happy. .
• We were expecting a Christmas rally. .
• We got a Christmas rally. .
• The important thing is to take advantage of it and lock in some profits. .
• You never want to completely liquidate a position. .
• If you've got a position in SPY and you haven't taken money off the table, sell a .
• partial position, just lock in some profits. .
• You do not ever have to completely .
• liquidate a position until we finally get kicked out. .
• And when do we get kicked out? .
• Well, the first close below the lower .
• channel line and we're not expecting that to happen on Friday. .
• The first sign of trouble, of course, is .
• going to be when we get a daily close below Wednesday's low. .
• Wednesday was the big breakout day. .
• It was the Fed Day. .
• And the first daily close below that level .
• will certainly be the first sign that something new is happening. .
• And then, of course, we're also going to .
• be watching the VIX to see when the VIX generates a daily buy signal. .
• Okay, thank you very much for your time and attention. .
• It's been a great week. .
• Have a great Friday. .
• Have a great weekend. .
• Next time you'll hear my voice is on Monday morning. .