• 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 are down across the board, so so far it looks like we're going to see .
• some selling at the open on Wednesday morning. .
• Now, the first trading day of 2024 has .
• come and gone and it was a pretty cloudy day. .
• We saw a big move up in the US dollar index, which can be negative for stocks. .
• We saw bonds selling off yesterday, which of course, can be negative for stocks. .
• So so far, things are not looking very good. .
• Now, crude oil was down yesterday. .
• That's good for the economy, but not necessarily good for investors. .
• While natural gas traded higher, gold was fairly stable yesterday. .
• It's down $16 in the premarket this morning. .
• That's not a good sign. .
• Gold is chasing silver already back on a daily sell signal. .
• Now, the DOW was able to hold its own on Tuesday. .
• That had a lot to do with one sector of the market, and that is US Health Care, .
• which was the best performer in North America on Tuesday. .
• You can see a couple of the DOW 30 stocks .
• led the healthcare sector higher, which was Merck and Amgen. .
• Then we also have a couple of stocks that .
• all of these stocks are in the S&P 500, some Moderna and Viatris. .
• Viatris is up over 5% on the day. .
• If you own any of these stocks and you haven't been systematically taking money .
• off the table, Wednesday would be a good day to lock in some profits. .
• But again, there is no reason to completely liquidate a position. .
• There's nothing wrong with selling into .
• strength, and we certainly had strength on Tuesday. .
• Now, the VIX for the S&P 500 is pretty close to a buy signal right now. .
• It certainly traded through the upper channel line yesterday. .
• It traded right up to the tether line on the midterm chart. .
• So that's looking like options traders are getting a little nervous at the moment. .
• We did not get a sell signal in the S&P 500 on Tuesday. .
• That would happen on Wednesday with a .
• close below 471.08. Now, the VIX for the Nasdaq, a .
• little more elevated already on a buy signal. .
• And we saw the Nasdaq 100 roll over yesterday. .
• Remember coming into this week, we had a .
• lot of window dressing, a lot of panic buying over the last couple of weeks, and .
• now we're seeing those people unwind those positions. .
• They don't need them anymore. .
• We're seeing some selling, whether that continues or not is another story yet to .
• be written, but we'll just have to take the signals as they come. .
• The biggest loser on the Nasdaq 100 .
• yesterday was MongoDB, which was down over 6% on the day, and then followed by .
• Advanced Micro Devices, which was down nearly 6% on the day. .
• But I think the biggest drag was probably .
• those Magnificent Seven stocks, and we had a gap lower for Apple. .
• That you don't see very often, and then .
• the rest of the Magnificent Seven, most of them generated sell signals. .
• We're looking at Amazon, we're looking at .
• Meta, Microsoft, Nvidia, and then Shopify on both sides of the border, back on a .
• sell signal, joining Tesla already on a sell signal. .
• Looking at the Canadian market, the ice price for the TSX 60 had a fairly quiet .
• day, closing down just nine cents on the day. .
• On Wednesday, we're looking for a close .
• below $31.59 to give us a new sell signal for the iShares for the TSX 60. .
• What worked on the TSX? .
• Well, the energy sector was up on the day, but as you can see, we're in the channel, .
• so we're not trending at the moment, even though we're on a buy signal. .
• We do have an open gap above the recent .
• high that could act as resistance going forward. .
• And so far, it does not look like the pros are interested in taking control. .
• Yes, we're on a buy signal, but we're in .
• the channel, which is not trending and the pros have not taken control. .
• That's not looking like it's going to work out. .
• What worked? .
• Well, First, Quantum was the biggest winner on the TSX. .
• Of course, this is a very High Risk stock. .
• It is on a buy signal right now. .
• The pros are starting to take control. .
• We hit our next price target of 12.50. .
• 15.63 and 18.75 are the next two targets to the upside. .
• If we look at the Fly Paper Channel, you .
• can see it's up at $20, but it is coming down daily. .
• So it is going to intersect with that 18.75 level over the next few days. .
• So that is the opportunity. .
• But remember, it is a very high risk opportunity. .
• This company is one press release away from being a zero. .
• Then looking at what didn't work. .
• Well, Brookfield was a big loser yesterday. .
• It is still on a buy signal that would change on Wednesday with a close below 5 .
• 1.70. Then we've got Open Text back on a sell signal. .
• We had a big down day for Lightspeed trading down to the lower channel line. .
• So a close below $25.53 would give us a sell signal on Wednesday. .
• Then Nuvei is back on a sell signal as of Tuesday's close. .
• Now last up this morning, looking at the .
• biggest Canadian stock, which is the Royal Bank. .
• We've had several early warning signals up there. .
• It still hasn't moved much. .
• It was only down to five cents yesterday. .
• We're looking for a close below 131.78 on .
• Wednesday to give us a sell signal for the Royal Bank. .
• The pros don't look like they want to give up control at the moment. .
• We hit the 134.38 level a couple of weeks ago, and now we're looking at our next .
• price target, which is 137.50, which is also our next weekly target. .
• You can see that we got a little higher than that back at the start of 2023. .
• A year ago, we were up at that level. .
• The Royal Bank might want to stretch up to .
• the 137.50 level before starting to pull back. .
• But so far, coming into Wednesday's .
• trading action, we don't really have anything to be concerned about. .
• Okay, folks, that is all for this morning's presentation. .
• So far, it looks like we're going to see .
• some selling at the open on Wednesday morning. .
• We came into this week very overbought, and we certainly had some panic buying in .
• late December, and we need to work that off. .
• Whether that turns into a longer term downtrend is yet to be determined. .
• But so far from Tuesday's trading action, .
• we did generate a lot of daily sell signals. .
• Enjoy the rest of your day. .
• Next time you'll hear my voice is on Wednesday morning. .