Canadian Stock Market Timing 20230105

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Good morning, everyone. Welcome to Thursday morning.

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It's Stephen Whiteside here from the

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Uptrend.com. In the pre market this morning, things are fairly mixed.

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We got the Dow futures slightly below fair

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value, while the S&P 500 and the Nasdaq are slightly above.

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Commodities are also mixed, with crude oil trading higher this morning, while gold

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and natural gas are trading lower in the pre market on Thursday morning.

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Lets start off this morning's presentation with a quick look at the US.

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Market and things were fairly quiet yesterday.

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Dow Diamond still in the Channel a closed

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above Wednesday's high on Thursday would give us a new buy signal.

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Similar situation for the S&P 500, which had an inside day, as did the Nasdaq 100.

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Something new yesterday.

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We saw Microsoft gap lower.

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So Microsoft joining Apple and Tesla already on major declines.

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But both of those stocks had inside days on Wednesday.

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Inside day for Apple, inside day for Tesla.

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So I'm not going to take too much away from what happens this week.

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It's still a holiday shortened week.

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A lot of people are still on vacation.

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Things will get back to normal next week,

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and then that's when I would certainly expect the market to show its hand.

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Right now, the hand is very neutral.

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Now moving over to the Canadian market, we

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saw the TSX trade up to the upper channel line yesterday, as did the TSX 60.

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Notice that on both indices we've got a nice open gap here, which could act as a

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price magnet and an area of resistance going forward.

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Now there's a little more positive

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activity in the mid caps and the small caps.

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Not so much for the micro caps just yet,

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with the venture exchange just sitting on the edge of a new daily buy signal.

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Now starting off with energy.

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Energy, of course, was the big market

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leader in 2022, not so much in 2023 so far.

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And we made a new low for this move on Wednesday.

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And the biggest player in the Canadian

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energy market is Suncor, which is on its second day of a sell signal.

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Still holding support here at $40.

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And there's a nice open gap over here to

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the left that could potentially act as support on the way down.

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If the market wants to continue lower on

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Thursday morning, we do have crude oil trading higher, so we may not see a lot of

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selling pressure for the major energy players on Thursday morning.

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Looking at Canadian banks, we are back on a buy signal as of Wednesday's close.

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The big volume leader yesterday was the TD

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Bank, which is now back on a daily buy signal.

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Looking at financials themselves, they're also back on a buy signal.

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Of course, financials include the banks, but they also include some other companies

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which have been doing much better than the banks recently.

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There's Canaccord Genuity making a new

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high yesterday, new high for this move for Great West and we've talked about the fact

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that the insurance companies are much more in fashion right now than the banks are.

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And there's Industrial Alliance making a new high yesterday.

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We had Manualife making a new closing high yesterday, and we had Sun Life still on a

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buy signal here trying to break out to higher highs.

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And just a reminder, all of these insurance stocks are up at the top of the

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Panic Zones, so any new buying activity should be considered high risk.

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Remember, low risk trades come off the

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bottom of the panic zones where the Pressure Zones have formed.

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Those are low risk trades up at the top of the Panic Zones.

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Those are high risk trades.

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Moving on to Infotech, we're on our second

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day of a buy signal here and we've got Shopify.

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The big winner from 2021 is now back on a buy signal as of Wednesday's close.

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BlackBerry also moving up yesterday, it was one of the big winners on the TSX.

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We're looking for a close above $5.03 on

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Thursday to give us a buy signal for BlackBerry.

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Looking at the industrials, they're

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sitting right on the edge of a new buy signal.

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Two major players in the industrial sector, of course, are the railroads.

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We've had an inside day yesterday for

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Canadian National, and we had a nice bullish day for Canadian Pacific.

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Close above 100 and 355 would give us a

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buy signal for Canadian Pacific on Thursday.

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Moving on to gold stocks making a new high

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for this move yesterday being led higher by Barrick Gold and Agnico-Eagle.

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But the big winner was Kinross.

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And Kinross, in percentage terms, was the

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biggest winner on the TSX Composite index from Wednesday's trading action.

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Okay, folks, that's all for a quick look at the Canadian stock market.

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Again, it's a holiday shortened week.

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I'm not overly excited about what happens either way this week.

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I'd be much more interested to see how the

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market reacts to things next week when everybody is back from vacation.

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Enjoy the rest of your day, folks.

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Next time you'll hear my voice is on Friday morning.

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Thank you.

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