Good morning, everyone.
Welcome to Thursday morning.. It's Stephen Whiteside here from. theuptrend.com. In the Premarket this
morning, things are fairly quiet so far.. We've got a while to go
before the market opens.. We have been talking about
the risk off trade recently.. And if you've ever wanted to see evidence. of a risk off trade, well, when Campbell
Soup is one of the biggest winners on the. S&P 500, you know you're
in a risk off situation.. Now, we've been talking about potential
weakness in the financial sector.. We've looked at Credit Swiss, Bank of. America and yesterday we saw
M&T bank plunge yesterday.. It is still $150 stock.. It is not going out of business. but certainly some of these stock
financial stocks are seeing some downward. pressure because of interest rate
fluctuations at the present time.. Now, Carvana, here's a stock that's
down, I think, 96% off the top.. And of course, a stock that's down
96% can still fall 42.92% in one day.. Anytime you see a chart like this, you
need to walk away and find something else.. Of course, if there's a whole sector that. looks like this, that could
be a different situation.. But if it's just one stock, you know, the. market hates it and it's likely not to
ever come back to where it was previously.. And that is certainly the case for
Carvana, which is probably going to zero. at some point in the
not so distant future.. Now, if you've been looking
if you live in the US.. And you've been looking to trade in a car
on a new car, you probably want to do that. now as opposed to later, because once
Carvana has to liquidate their inventory,. there's going to be a huge flood of used
vehicles on the market, and that's going. to put downward pressure on
the value of used vehicles.. Now, yesterday was a fairly quiet
day for most of the market.. It was an inside day for the Dow, inside. day for the S&P 500, a little
weaker for the Nasdaq.. And the Ishares for the TSX 60
actually had a new low for this move.. It was a penny lower
than the previous day.. So not technically an inside
day, but pretty close.. Now, options traders are
getting a little nervy.. They're getting a little
worried about the future.. And we saw a new buy signal for the VIX.. That tells us that option traders are
starting to feel the pressure, and that's. probably not a good sign for
the market going forward.. No guarantee of that, of course, but to
see the VIX start to change direction is. usually a sign that the stock market
is going to start moving lower.. Now, the US dollar index
pulled back a bit yesterday.. No change in trend there bonds
continuing to move higher.. Huge day for the bond market on Wednesday.. A risk off trade that people are taking. money out of the stock market and putting
it into the bond market, certainly putting. downward pressure on
yields and interest rates.. It's not what the Fed wants
to see at the moment.. So we may see a battle between the Fed and. the bond market coming up when
the Fed meets in a week or so.. Then looking at copper prices, copper. prices were up yesterday,
still on a buy signal.. No change in trend for gold.. Gold was up yesterday.. Silver was up yesterday.. So that of course helped
the mining sector.. And we saw the GDX move up nearly 2% and
the XGD was also nearly 2% on the day.. Looking at crude oil, we have a new low. for crude oil and we're seeing the lowest
gasoline prices of 2022 right now.. And we had natural gas move up yesterday.
Looks like it's.. Finding support at our weekly daily price. target of 5.47 now, just
like the rest of the market.. Both Canadian and US energy stocks had a. fairly quiet day, both making new lows but
both closing almost unchanged on the day.. A couple of stocks we've been watching,
Apple, apple held $140 yesterday.. That could be a bullish sign going forward. if Apple can continue to
find support at $140.. Unfortunately, Tesla was down 3% and
change yesterday, down another 2% last. time I looked in the pre
market on Thursday morning.. And last up Dollarama.. Dollarama, the best performing
stock on the TSX 60 on Wednesday.. It ended Tuesday on a sell signal.. And so you come in Wednesday morning and. you find out it's going to open
up there up at the 81.50 level.. And you have a choice.. You can either take the cell signal that
would lock in some additional money up. there, or you could stand aside
and wait to see what happens next.. Often standing aside is a good thing, but. also locking in money at that
level is also a good thing.. So it is really a judgment call
what you do at that point.. But I always tell people no matter what. the signal is, you always want to look to
see how the market's opening the next day. and just not automatically
throw your order in.. And you may decide to not take the buy. signal or the sell signal at that
particular time and wait for another close. above or below the channel line, depending
on which way the market is going.. Okay folks, that is all for
this morning's presentation.. Stock index futures are fairly quiet
but slightly positive this morning.. Have a great day on Thursday.. Next time you'll hear my
voice is on Friday morning..