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00:00:00Good morning everyone, and welcome to Wednesday morning.
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00:00:02It's Stephen Whiteside here from the uptrend.com. In the pre market this
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00:00:07morning, stock index futures and commodities are slightly above fair value.
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00:00:10Not expecting a lot to happen this morning.
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00:00:13It is a Fed day, so we're expecting volatility to expand after 2:00 p.m.
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00:00:17this afternoon.
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00:00:18Speaking of volatility, the VIx hit a new
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00:00:20low yesterday for this move and I think a new four year low.
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00:00:24So on Wednesday, we're looking for a close
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00:00:26above 13.34 to change our mind on the market.
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00:00:30We had bitcoin and ethereum both trade in the channel again yesterday, so they both
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00:00:36have the potential of a sell signal on Wednesday.
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00:00:39Looking at what worked yesterday, well, we had a lot of new 52 week highs, including
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00:00:44Costco, my favorite place, making a new high for this move.
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00:00:49And then on the other side of the coin, well, we had Crude Oil move lower.
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00:00:53Natural Gas made a new closing low.
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00:00:55We had gold closed down just $0.50. It is
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00:00:58trading below $2,000, but hasn't broken away from $2,000 just yet.
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00:01:02And then we had a new closing low for Silver.
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00:01:05And none of those add up to helping the canadian stock market at the present time.
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00:01:10Now, if you take away those commodities, the Dow made a new high yesterday.
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00:01:14It was being led higher by Salesforce.
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00:01:17And then the third best performing stock is my favorite financial, which is Visa.
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00:01:22It made a new high on Tuesday.
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00:01:24Then looking at the S&P 500, making a new high, being led higher by Incyte, which
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00:01:28was up just under eight and a half percent on the day.
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00:01:32What didn't work on the SP 500? Well, it was Oracle.
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00:01:35Oracle was down over 12%, gapping lower right back down to the lows from October.
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00:01:41Then looking at the triple Q's, they also
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00:01:43made a new high, being led higher by SiriusXM.
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00:01:47And that stock was up nearly 6% on the day.
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00:01:51And then Broadcom was up at the top of the
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00:01:53winners list again yesterday, up over 4% on Tuesday looking at the TSX.
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00:01:59So we're in the channel dipped below the
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00:02:01lower channel line yesterday, but did not close below it.
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00:02:04The big winner on the TSX was actually
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00:02:06Stelco, a stock we haven't talked about in a long time.
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00:02:09It is back on a buy signal as of Tuesday's close.
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00:02:13What didn't work? Well, gold stocks were the big losers.
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00:02:16There's Nova gold down nearly 9% on the day.
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00:02:19Then looking at the TSX 60, again trading in the channel.
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00:02:23So certainly mathematical possibility of a sell signal on Wednesday.
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00:02:27And then looking at the TSX 60, we're in the channel right now.
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00:02:30So, yes, there's a mathematical possibility of a sell signal on Wednesday.
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00:02:35The big winner yesterday was
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00:02:37Gildan Activewear, which was the big loser on Monday.
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00:02:40So a big turnaround there.
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00:02:41Certainly no change in trend whatsoever.
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00:02:44Let's finish off the Magnificent Eight.
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00:02:47Only one trend change from Tuesday's trading action, and that was Nvidia, which
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00:02:52is back on a buy signal as of Tuesday's close.
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00:02:55Okay, folks, that is all I wanted to cover this morning.
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00:02:58Not expecting a lot to happen till the Fed meeting this afternoon.
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00:03:02And of course, it isn't the announcement that the market reacts to, it's usually
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00:03:06the press conference that the market reacts to.
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00:03:08And if for some reason they were willing
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00:03:11to cut rates today, that would certainly be a very negative sign for the market.
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00:03:15It would tell the market that something's broken that we don't know about just yet.
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00:03:20Otherwise, the Fed would not bother cutting rates on Wednesday.
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00:03:24Enjoy the rest of your day.
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00:03:25Next time you'll hear my voice is on Thursday morning.