Good morning everyone and
welcome to Tuesday Morning.. It's Stephen Whiteside here from The. UpTrend.com. Well things are fairly
quiet out there this morning.. Stock index features
are slightly above fair. value with the Nasdaq
leading the market higher.. But so far it really looks like.,. We are going to have a quiet
open at 9:30 Tuesday morning.. Now looking at Monday's
trading action we've. got the VIX closing in the channel.. Things would change on Tuesday
with a close above $20.01.. Now looking at the US dollar index, and a
lot of people are watching this closely,. because if we go back in
time and I'll just leave my. mouse in the middle of the screen here. right at when things started to change for
the US dollar index, that is also the time. and place when the stock
market started to move up.. So a lot of people are looking at
the connection and looking at the. fact that the US dollar index is back on a. buy signal and that could
be negative for stocks.. It's certainly negative for other
currencies with the Euro and the Japanese. yen both continuing to
move lower on Monday.. Still leaving my mouse in
the middle of the screen.. You can see when bond yields started to. move down that helped the
stock market move higher.. And now look at the right hand side of the. screen and you can see that bond yields
have moved up over the past couple of days. and again that could be
negative for stocks.. What worked yesterday?. Well anything interest related did move
up yesterday, but not in a big way.. Utilities and insurance
stocks did fairly well.. Compared to the rest of the market.. Which was negative on Monday.. Now in the Canadian market the big. loser was base metals and you can see that. first quantum was the big
loser on the TSX 60 on Monday.. Then looking at the US it
was oil and gas explorers.. Those were the big losers
on Monday in the US.. Now looking at the Nasdaq 100 it is. trading higher in the
Premarket this morning.. But notice that for the past two days. we've actually closed below
the previous day's low.. So that's a bearish chart pattern there.. We did fill the open gap and that is now. closed and we're still trading
above the upper channel line.. So nothing has really broken yet, but
we may be setting up to continue.. To move lower from here.. It was the semiconductors that pulled down
the Nasdaq yesterday and intel was the big. loser which is a Dow stock, a
Nasdaq stock and an S&P 500 stock.. So a close blow 28 42 would give us
a sell signal for intel on Tuesday.. And you can see that we drove up to the. highs from back in November
and then quickly reversed.. Now I don't want you to be trading intel.. You can trade Advanced Micro Devices which. did pull back yesterday down over
2% on the day, closer to 3%.. And then you could also trade Nvidia.. Those are much better stocks to trade.. Nvidia very steady on Monday, down just. $0.11, which is pretty
good for a $200 stock.. Let's finish off looking at commodities.. And there were no trend changes on Monday. for the USO, which made a new low before
reversing and closing higher on the day.. So that could be the bottom for crude oil.. We'll just have to wait and see.. That's also a similar set up for. gasoline, which made a new low
yesterday before reversing.. And then natural gas, not a
lot of movement yesterday.. We're trying to put in a low here, but
there isn't enough upward momentum to. really declare that anything
new is happening just yet.. Then looking at the metals we had, gold. dropped sharply on Friday inside day
yesterday for the GLD, new low for. palladium, new low for platinum,
and a new low for silver on Monday.. So certainly no new trend changes
to talk about on Tuesday morning.. Okay, folks, that is all for
this morning's presentation.. So far.
It looks like we're going to have a fairly. quiet open when the market
opens at 930 Tuesday morning.. Have a great day.. Next time you'll hear my voice
is on Wednesday morning.. Thank you..