Morning Market Outlook 12132023

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

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