Good morning, everyone.
Welcome to Tuesday morning.. It's Stephen Whiteside here
from theuptrend.com in the pre market. this morning, things are
looking fairly bullish.. We've got the Dow futures
up about 200 points.. Commodities are mixed,. natural gas and gold are higher, while
crude oil is lower on Tuesday morning.. Well, Monday was an interesting day.. The Dow diamonds, the SPY ETF,. and the Q's for the Nasdaq all made new
highs and then closed lower on the day.. So they all generated
bearish reversal signals.. What they didn't do is they didn't
close below the previous day's low.. That would have been a much
more of a bearish signal.. Now, the Canadian market did not make. a new high yesterday and did close
below the previous day's low.. So things looking a little weaker
there for both the TSX and the TSX 60.. Now, while the stock index futures pulled
back yesterday,. we saw the VIX close slightly higher still
closing below the lower channel line.. So not concerned on Tuesday.. Things, of course, would change if the VIX
were to close above $26.24 on the weekend.. We talked about following
the US dollar index.. It closed slightly higher yesterday
inside day, no major changes there.. And then the Chinese market has come back
quite a bit over the last week or so.. We're looking at the eye shares
for the Hong Kong market.. You can see the gaps on the screen.. You expect to see gaps in charts
for anything that is traded. in North America that is
following something overseas.. You've always got that time gap. which shows up in the charts
as a nice big white space.. So we've seen a huge recovery
in the Chinese market.. A lot of it has to do with the rumors. that they're going to reduce the COVID
restrictions and there might do something. about all the banking
problems that they've got.. And one of the biggest problems they have,. which they're not able to really do
much about, is the water shortage.. There's a huge drought in China
and that is not only affecting drinking. water, but a lot of their electricity
comes from hydroelectric dams.. And with the river levels at historic. lows, that seems to be
a problem at the moment.. So we may see some huge blackouts
in China over the winter.. Now, looking at what's going on this. morning, well, Walmart
is out with earnings.. And Walmart came into today on a sell
signal, generated a sell signal four days. ago, and you can see yesterday they traded
it down with the rest of the market.. In the pre market this morning,
we are up over the 43.75 resistance level,. which has held us in check
for the past few weeks.. And we're up there at 47.66 last time I checked.. Of course, that number fluctuates every. second, but we're getting pretty close
to the 150 level,. which is not only a daily target,
but it's also a weekly target.. While Walmart is up.. Some of the other retailers are
also trading higher this morning.. Target, TJ, Maxx, they're
all up in the pre market.. What's not working in the pre market,
or should I say what is not consistently. working in the pre market
this morning is Home Depot.. Last time I blinked, it was down.. It's been up, it's been all
over the place this morning.. So Home Depot may open lower on Tuesday,. but not enough to give
us a new cell signal.. Now, chips have done really well over
the last couple of weeks, and of course,. I love watching the chip
sector move higher.. That is inspirational.. This morning we find out. that Warren Buffett's company has put
$4 billion into Taiwan Semiconductor.. And that news. has taken Taiwan Semiconductor up over
10% in the pre market this morning.. So obviously Warren Buffett's not worried
about China invading Taiwan anytime soon.. Let's finish off with a quick look
at commodities and crude oil.. Still on a sell signal.. Trading lower in the pre
market this morning.. Inside day yesterday for natural gas
trading higher in the pre market.. Then we've got copper making a new
high yesterday before pulling back.. That's a bearish reversal.. Day again, not closing below
the previous days low.. There's gold making a new high yesterday.. Gold's getting up,
trying to take out the 1781.25 level.. If we can do that.. If you look over to the left,
you can see in August we had a nice. cluster of resistance up there
between 1781.25 and 1812.50.. So gold may struggle to move higher
from here unless there is a major event.. And there's silver making a new closing
high yesterday,. getting pretty close to the 22.50 level,
which is our next target to the upside.. Okay, folks, that's all
for Tuesday morning.. Looking for higher prices today.. Everybody seems to be happy.. I hope you have a happy day.. Next time you'll hear my voice
is on Wednesday morning..