Good morning everyone. Welcome to Wednesday morning..
In the pre market this morning things are fairly bullish..
We've got stock index futures and commodities trading above fair value..
So we are looking for some buying at the open on Wednesday morning..
Now it is the last day of the month and of.
course last day of the month usually has a bullish buying bias to it..
Today unfortunately is also a Fed day..
So the Fed chairman is speaking today and.
that is certainly going to cause volatility to expand..
Now when we talk about volatility.
expansion, it's actually not just stock market related..
It's going to happen in a lot of areas of the financial world on Wednesday..
Starting off with the bond market, the 30.
year bond has been on a buy signal for a couple of weeks now..
That of course has put downward pressure.
on bond yields and interest rates have been able to pull back over the past.
couple of weeks and that has certainly helped the stock market move higher..
We've also got the US dollar index which.
is still on a sell signal, closing in the channel once again and so looking for a.
close above 107.29 for the US dollar index on Wednesday..
It's still holding the 200 day moving average..
And if it was to break down from here,.
that would certainly be bullish for stocks..
Looking at the VIX, the VIX had a fairly.
quiet day yesterday looking for a close above 23..
44 on Wednesday to give us a buy signal..
Now the major stock market ETFs traded.
down to the lower channel line yesterday, the Dow Diamonds, the SPY ETF..
So a close below those levels on Wednesday would give us new cell signals joining the.
queues which are back on a sell signal as of Tuesday's close..
And then the Ishares for the Russell 2000 and the Ishares for the microcap sector..
Both of those generated sell signals on Monday..
Now looking at the Canadian market, that was a very quiet day on the TSX..
With the Ishares for the TSX 60 having an inside day..
So close on Wednesday below 30..
75 would give us a sell signal..
Now commodities are holding up fairly well..
We did see crude oil dip below 75 the other day but had a quick reversal..
It was up yesterday, it's up in the pre.
market this morning, so that could help the energy sector..
We still got natural gas on a buy signal, it hit 7.81 last week..
Hopefully we can take out last week's high.
and head up to 8.59. Now the price of gold is treading water right now..
It is still on a buy signal..
A closed below 1751..
32 would give us a sell signal on Wednesday..
We are still holding the 1750 level..
Remember previously we were looking at 1750 as major resistance..
It sliced through it in one day and now.
that major resistance is acting as support..
Let's finish off today's presentation looking at a couple of stocks in the news..
Both Canadian National and Canadian.
Pacific have been two of the best performers on the TSX over the past month..
Both hit new highs yesterday..
And of course they're in the news as we're.
watching to see if the US can avert a major railroad strike..
It doesn't seem to worry investors at the moment..
Then we've got Apple seeing fall through.
to the downside on Tuesday and then we're still waiting for Tesla to generate a buy.
signal that would happen on Wednesday with the close above 186..
85..
Okay folks, that is all for this morning's presentation..
Today should be a rather interesting day..
I don't see any reason why Chairman Powell should take his foot off the gas and slow.
down the rising of interest rates, but a lot of people are betting that he will and.
we'll just have to wait and see what happens..
Have a great day..
Next time you'll hear my voice is on Thursday morning..