Good morning, everyone, and welcome to Wednesday Morning..
It's Stephen Whiteside here from The.
UpTrend.com. Well, the market got off to a rough start on Tuesday..
There were some things that moved higher,.
including the VIX, which is back on a buy signal as of Tuesday's close..
We've got the US..
Dollar index sitting right on the edge of a new daily buy signal..
And then we've got gold moving higher on Tuesday..
Making a new high for this move..
Our mathematical target right now is 1843..
75..
If we can take out yesterday's high, then.
1875 is both our next daily and weekly price target..
With the price of gold moving up, we had.
gold stocks moving up on both sides of the border..
There's the GDX moving up..
There's the Ishares for the TSX Global.
Gold Index making a new closing high for this move..
Now, it ended last week on a sell signal,.
and you can see the nice gap open yesterday..
So if you were about to sell on Tuesday.
morning and you looked at the opening bid and ask, you probably waved off that sell.
signal and just held your position through yesterday's trading activity..
Now, Barrick, of course, the big player on.
the TSX made a new closing high for this move yesterday..
And the only gold stock on the S&P 500.
actually was the biggest winner on the S&P 500 yesterday..
We see Newmont making a new closing high for this move..
Our next mathematical target is $50..
We're trading just above that in the pre market this morning..
Of course, if you trade Newmont, you know.
we're coming up to the 200 day moving average..
We're also coming up to an open gap from back in July..
And so the top of that open gap was at..
Unlike the major US.
Indices, the Canadian market was able to.
move higher yesterday on the back of rising gold prices..
Looking at the Ishares for the TSX 60, we need to close on Wednesday above 29..
46. And we've got a nice open gap just above.
that level that could hold this market in check..
Now, going in the opposite direction of.
gold was crude oil, which is down over 3% yesterday..
It is down again in the pre market this.
morning and may end Wednesday on a sell signal, joining natural gas, which was.
down over 10% on Tuesday, making a new low for this move..
And we saw a big sell off in energy stocks on both sides of the border..
There's the Ishares for the TSX 60, making a new low for this move yesterday..
Back on a sell signal as of Tuesday's close, also trading below the recent lows..
So still projecting lower prices here..
I saw some people talk about possible head and shoulders here..
You've got the head up here. You've got a left shoulder..
You've got a right shoulder..
You take the distance from there to there..
And that would take us back down to the.
lows from back in July if this head and shoulders pattern continues to unfold..
Right now, we are still projecting lower prices here, down to the $14 level..
We'll just have to see how that works out..
Now, in the US..
Energy stocks held up a little better..
They have not broken down below the recent lows..
We'll have to see if those lows continue to act as support..
Now, the biggest losers that people are.
talking about on Wednesday morning are Apple and Tesla..
There's a new low for Apple..
Our next target to the downside, if we start breaking down below 125, is 118..
75..
Now, Apple appears to move a lot slower.
than Tesla, and they are two completely different stocks..
The average two range on Apple is 3.66% right now, and you can see how wide the.
flypaper channel is, which is currently acting as resistance..
So any rally here, we would expect to get caught in the flypaper channel..
Now, if you compare that to Tesla, first.
of all, the width of the flypaper channel is dramatically smaller..
So, you know it's a much more nimble stock than Apple is..
And you can see, mathematically speaking,.
the average true range is just under 10% at the moment..
So being down over 12% on the day is a.
little more than the average true range at the moment..
But it's not that unexpected to see that happen..
So when we're looking at Tesla, our next mathematical target is 93, 75..
Of course, the market is going to be looking to see if $100 can hold..
That's a big round number, and it'll be very interesting, and it'll be very sad.
for the market if we start breaking down below $100..
Okay, folks, that is all for Wednesday morning's presentation..
Currently, the Dow is up about 44 points..
We do have some economic numbers coming up.
this morning that could add to the pre market volatility, but so far, things are.
looking fairly quiet out there on Wednesday morning..
Have a great day, folks..
Next time you'll hear my voice is on Thursday morning..
And at that time, we'll take a closer look at the Canadian stock market..
Thank you..