Morning Market Outlook 01112024

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00:00:00

Good morning, everyone, and welcome to Thursday morning.
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It's Stephen Whiteside here from theuptrend.com.
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In the pre-market this morning, things are fairly quiet.
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Stock index futures and commodities are currently trading above fair value.
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We do have inflation and employment numbers coming out at 8:30 this morning,
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and that could add to the pre-market volatility.
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The VIX is still on a sell signal that is supportive for higher stock prices.
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That would change on Thursday if the VIX were to close above 13.78.
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Now, we were hoping to get the US dollar index to start falling again.
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That would be supportive for higher stock prices, but so far that's not the case.
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The US dollar index was down slightly.
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Yesterday, had an inside day, so no change there.
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And bonds, we want bonds to start moving
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up to put more downward pressure on bond yields and interest rates.
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That's not happening at the moment.
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If you're looking at the TLT or the XBB, where we did see money going to bonds in
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the emerging markets and junk bonds were both up yesterday.
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Junk bonds are actually back on a buy a buy signal.
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So a mixed picture in the bond market.
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Us dollar index so far not supportive for higher stock prices here, but we'll see
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how the market reacts to those numbers coming out at 8:30 this morning.
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Now, the DOW is still on a buy signal here up at all time highs.
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At the same time, we still have 11 of the Dow 30 stocks on daily sell signals, and
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we'll take a look at that in a few minutes.
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The S&P 500 continued to move up yesterday.
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We had the Nasdaq continue to move higher on Wednesday as well.
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Not a lot of joy for the Russell 2000 or for the microcaps.
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They're still on sell signals here.
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Still both trading below the lower channel line.
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Now, looking at the Canadian market, a
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very quiet trading on Wednesday for the TSX composite and the TSAX 60.
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We've got mid-caps back on a buy signal,
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small caps still on a sell signal, and microcaps still on a buy signal here.
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So a mixed picture.
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In 2024, it's been the Communication
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Services, the telecom stocks that have been holding the TSX up.
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Now, looking at the Dow 30, 11 of the Dow 30 stocks are still on daily sell signals,
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and we can go through those fairly quickly.
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Still waiting for Apple to generate a buy signal.
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American Express rolled over on Wednesday,
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is back on a sell signal, joining Boeing already on a sell signal.
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Then we've got Chevron, Walt Disney,
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Dow, Honeywell, IBM, and Intel, both still on sell signals.
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That could certainly change on Thursday.
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Then we've got Nike still on a sell signal, no change there.
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And last up, Walgreens Boots still on a sell signal, no change in trend there.
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Okay, folks, that is all for this morning's presentation.
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Waiting for those economic numbers to come
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out to see which way the market is going to go.
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Depending on what happens today, we've got more economic numbers coming out on Friday
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that, again, could change the direction of the market.
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Again, only time will how the market will react to those numbers.
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Enjoy the rest of your day.
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Next time you'll hear my voice is on Friday morning..

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