Good morning, everyone, and welcome to Tuesday morning. .
It's Stephen Whiteside here from theuptrend. .
com. In the pre-market this morning, stock .
index futures and commodities are currently trading below fair value. .
So so far, it looks like the market wants .
to do a little selling at the open on Tuesday morning. .
Now, yesterday, the VIX ended the day in the channel, so that's neutral. .
So options traders are not overly bullish .
or overly bearish going into Tuesday's trading action. .
That might have a lot to do with the Fed meeting, which is starting today. .
And of course, we expect volatility to .
expand dramatically after 2:00 PM, Wednesday afternoon. .
Now, we'll start off today's presentation .
with a quick look at the US market, and then we'll move on to the Canadian market. .
The Dow is currently on a sell signal as of Friday's close, .
and we've got Boeing making a new low yesterday, so that story has not changed. .
The S&P 500 still on a buy signal. .
That would change on Tuesday with a close below $509. .
87. .
The Nasdaq ended Friday on a sell signal, so that didn't change yesterday. .
We traded up into the channel. .
We're currently trading lower in the pre-market this morning. .
The Russell 2000 and the iShares Microcap .
ETF still on sell signals, no change there. .
Now, yesterday, there was a couple of big stories that captivated the market. .
The first one was Google and Apple .
partnering, and it looks like it was better for Google than Apple. .
But there's a Google or Alphabet gapping higher yesterday. .
Apple also gapped higher yesterday, and .
just like Alphabet, it gave up most of its gains going into the close. .
While we traded above the upper channel line yesterday, we did not close above it, .
and we're looking for a close on Tuesday above $174. .
78 to give us a new buy signal for Apple. .
Nvidia traded higher, closed higher yesterday. .
On Tuesday, we're looking for a close below $853. .
73. .
And then looking at Tesla, everybody was excited. .
Tesla was up over 6% yesterday, .
and we're still looking for a close on Tuesday above $180. .
40 to give us a buy signal for Tesla. .
Now moving on to the Canadian market. .
Fairly quiet trading yesterday for the TSX and the TSX-60. .
That's an inside day. .
We did see mid-caps make a new high for this move on Monday. .
Inside day for small caps. .
And unfortunately, the Venture Exchange .
made a new low for this move in the market. .
Now, what worked yesterday, well, health care was the big winner. .
And when you see it up over 3%, you know that's a marijuana stock. .
Then we've got energy, real estate, and industrials. .
What didn't work yesterday, consumer .
staples down less than 1%, so nothing significant there. .
The marijuana stocks were actually the best performing sector in North America on .
Monday, based on the sectors that we follow. .
There's the Horizons Marijuana Life ETF making a new high on Monday. .
And it was a Tilray was the big catalyst .
up over 10%, new buy signal on Friday, follow through to the upside on Monday. .
And then looking at energy stocks, looking .
at the iShares ETF, we made a new high for this move on Monday. .
Now, this morning, I wanted to take a look at industrials. .
We don't talk about this sector a lot. .
Most of the people trading the market are .
trading the resource-based stocks more than industrials. .
But industrials are a huge component of the Canadian market, and the big elephants .
in the room, of course, are the railroad stocks. .
There's their market caps as of yesterday, and then we've got Thompson Reuters, and .
then Waste Connections are the big players in the Canadian industrial sector. .
CP, still on a buy signal, very quiet trading on Monday. .
CN, back on a buy signal as of Monday's .
close, looking to see if we can take out the recent high. .
Then we've got Thompson Reuters, still on a sell signal here, no change. .
And then Waste Connections, one of the best performers in the industrials in .
2024, up over 17% year to date, making a new high on Monday. .
And then the old SNC, I still call it SNC, is up over 31%. .
That's the best performer in the Canadian industrial sector. .
And then we've got WSP Global up over 20 % year to date, still on a buy signal. .
That would change on Tuesday if we were to close below $220. .
58. .
Now, what's not working in the industrials .
in 2024 is Ballard Power down over 24 % year to date. .
Very shaky trading so far this year. .
When you look at the Panic Zone chart, you .
see the elongated pressure zones across the bottom of the screen. .
That's telling you that the stock is .
broken and something you should probably avoid. .
When you look at the Daily Fly Paper channel chart, you can see that it's acted .
as resistance as the market has separated between the Bulls and the bears, and the .
bears are in control, the don't want to play. .
If we start moving up from here, we have .
to assume that it's going to stop at the Fly Paper channel once again. .
The first sign something new is happening is a breakout above the FlyPaper channel. .
You can see back here, yes, we traded .
above the Fly Paper channel back here last summer, but we did not break away from it. .
We poked above it, but did not break away. .
So we would need to see a break away to tell us that something new is happening. .
And so far, coming in to Tuesday's trading action. .
We're down at the bottom here, and no sign .
that things are going to turn around anytime soon. .
Now, let's finish off looking at Canadian banks. .
We've got a couple of winners and a couple of losers right now. .
And on the winners column, we've got Bank .
of Nova Scotia, CIBC, and the National Bank. .
What's not working, the TD Bank, which has .
not performed well, put in a lower high, and now it's rolled over back on a daily .
sell signal as of Monday's close, joining Canadian Western Bank and Laurentian, .
which is back on a sell signal as well as of Monday's close. .
So some people getting out of some of the Canadian bank stocks on Monday. .
Okay, folks, that is all for this morning's presentation. .
Monday might turn out to be a buy the rumors, sell the news type situation. .
As we come into Tuesday's trading action, .
we do have all the stocks, all the major US tech stocks we looked at earlier are .
all trading We're getting lower this morning. .
So that might have been the top for this particular move, but only time will tell. .
And then, of course, we've got the Fed meeting, which could certainly change the .
overall direction of the market after 2:00 PM on Wednesday. .
So we'll just have to wait and see what happens next. .
But we do have the Nasdaq already on a short term sell signal, and so traders are .
on edge, looking to lock in some profits up at these levels. .
Enjoy the rest of your day, folks. .
Next time you'll hear my voice is on Wednesday morning. .