Good morning everyone. Welcome to Friday morning..
In the premarket this morning we see Asian.
markets closed higher overnight, we've got..
European markets trading higher this morning and..
We'Ve got stock index futures in North..
America trading slightly above fair value..
So so far it looks like we're going to have a quiet to a..
Positive opening at 930 Friday morning..
Lots of interesting stuff going on..
We've had a lot of after hours activity and I guess Netflix led that off..
Netflix reported after hours last night,.
it traded down to the lower channel line yesterday but did not close below it..
So it's still on a buy signal here..
It is trading up nicely in the pre market.
this morning, trading back up at the levels we saw a couple of days ago..
And so this stock has recently made a.
higher high and it might be able to do that again today..
Our next mathematical target just above the recent highs is 343 75..
And so if you're still long Netflix, I'd.
be wanting to take some money off the table up at that level..
Looking at the Dow, we talked about the Dow diamonds being back on a sell signal..
We also talked about the early warning signal at the top of the screen..
Now that is also true for the Dow Transports and the Dow Utilities..
Now speaking of after hours action, a couple of stocks announced layoffs today.
and so we've got Alphabet laying a bunch of people off..
It is trading higher this morning, still on a buy signal..
Wayfair is also laying off a bunch of people and just like Netflix, we traded.
down to the lower channel line yesterday, did not close below it..
We were down $2.13 at the close yesterday..
We're up $2.34 in the pre market this morning..
So we'll be up at the upper channel line at the open on Friday morning..
Now a lot of strange things have happened in the past few weeks..
Of course we've got a nice rally to start January off, but we're also seeing money.
come out of consumer staples ahead of consumer discretionary..
Now the market has been acting as if the recession is already over, but..
At the same time you can see corporations.
are acting as it is still coming such as Alphabet and Wayfair are continuing to lay.
people off, that is ahead of the recession..
They're not doing that because the.
recession is over and things are starting to turn around..
Now the metals have had a good week so far, so copper and gold both making new.
highs this week and so that's helped the mining sector..
So the GDX is still in play here inside day yesterday, still on a buy signal..
Similar situation for the XEG, both still on buy signals here..
So no change there..
Now I've been waiting for the energy sector to come back..
We've got crude oil on a buy signal..
You can see that we recently put in a.
higher low, and then we put in a higher high..
So that's a bullish sign for crude oil..
Unfortunately, we're not seeing that sort of action for natural gas at the moment..
Crude oil is trading up in the pre market.
natural gas is trading down slightly in the pre market on Friday morning..
So the XLE is still on a buy signal here..
And the XEG is also still on a buy signal here..
So still looking for the energy sector to continue to move higher from here..
Now, the SPY ETF traded down to the lower channel line yesterday..
Still looking for a close on Friday below 388 49 to give us a sell signal..
Q's, traded back in the channel yesterday,.
looking for a close below 271 77 on Friday..
And looking at the I shares for the TSX 60, we need a close below $30.0.57. Now.
looking in the opposite direction, the VIX is still on a sell signal..
Traded up to the upper channel line.
yesterday, looking for a close on Friday above 21..
48 to give us a buy signal..
And that, of course, would be negative for stocks..
Okay, folks, that is all for this morning's presentation..
Again, it looks like we're going to see a.
little bit of buying at the open on Friday morning..
Enjoy the rest of your day..
Enjoy your weekend..
Next time you'll hear from us will be on Sunday..
Thank you..