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00:00:00Good morning everyone and welcome to Tuesday Morning.
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00:00:03It's Stephen Whiteside here from the
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00:00:04uptrend.com in the pre market this morning.
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00:00:07Stock index futures and commodities are down across the board.
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00:00:10Dow futures currently down 200 points.
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00:00:13Yesterday was a fairly lightly traded day.
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00:00:15Canadian markets were closed.
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00:00:17Yesterday was an inside day for many of the major indices including the VIX.
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00:00:22On Tuesday we're looking for the VIX to close below $14.19. That would change us
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00:00:27from being short term bearish to being short term bullish and at the moment
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00:00:32doesn't look like that's going to happen on Tuesday.
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00:00:34Now it's very easy to notice that the S&P
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00:00:36500 had an inside day on Monday trading within the previous day's range.
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00:00:41That of course is a day of indecision.
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00:00:44Of course the headlines are very positive, but that's not exactly what happened.
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00:00:48Looking at the Nasdaq, the Nasdaq actually
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00:00:51dipped slightly below Friday's low before recovering and volume was very light.
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00:00:56The queues on Monday only traded 37
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00:00:59million shares and change on Friday that was 61 million.
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00:01:03So a lot more people interested in selling on Friday than buying on Monday.
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00:01:08There's the Russell 2000 closing higher yesterday, making a new low for this move.
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00:01:15Very quiet day for the chips on Monday.
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00:01:18Still on a sell signal, no change there.
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00:01:20Apple continued to move lower on Monday
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00:01:23and since the rebalancing, Apple isn't having as much of an effect on
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00:01:29the market as it previously did, we are coming into the Fly Paper Channel.
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00:01:34This is a place we'd look to see if Apple
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00:01:36could find some footing here and find new buyers.
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00:01:41We are down at the 100 day moving average,
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00:01:43heading towards the 200 day moving average.
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00:01:45Our next mathematical target is 175 and just above that is an open gap.
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00:01:51So that is certainly a legitimate target for Tuesday.
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00:01:55Looking at Tesla, Tesla made a new low yesterday before recovering.
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00:01:59Still closing lower on the day it regained the $250 level.
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00:02:04At the close there is an open gap not too far below where we are right now.
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00:02:09And if that gap doesn't hold, then 218 75
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00:02:12would be our next mathematical target to the downside.
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00:02:16And you can see the 100 and 200 day moving average is around the 225 level
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00:02:21and you can see that that would take us into the Fly Paper Channel as well.
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00:02:24So looking for places to find support at the moment.
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00:02:29And so far the market has not stopped moving lower.
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00:02:33Now the TSX 60 was up $6.95 on Friday.
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00:02:38It is down $4.10 in the pre market.
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00:02:41So not going to catch any of Monday's
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00:02:44positive trading action on Tuesday morning.
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00:02:47We do have commodities down across the board.
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00:02:50Crude oil pulled back yesterday.
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00:02:52Remember 81.25 was our top of our projected trading range.
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00:02:56We've now expanded that and looking to see if we can continue higher.
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00:03:00We're not going to do that on Tuesday morning.
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00:03:03Natural gas had a great day on Monday.
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00:03:05Back up to the 2.73 level on the futures
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00:03:08contract and unfortunately, it's pulling back a bit in the pre market this morning.
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00:03:13Now energy stocks in the US.
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00:03:15Were up just slightly on Monday and so I would expect that energy stocks on both
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00:03:21sides of the border will be down on Tuesday.
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00:03:23And then looking at gold, it was down
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00:03:25yesterday, it's down in the pre market this morning.
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00:03:27Silver is also down in the pre market this morning.
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00:03:30I don't think that's going to help gold and silver stocks and the GDX was down
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00:03:34yesterday a little over three quarters of a percent.
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00:03:37I would expect the XGD to be down one or 2% on Tuesday.
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00:03:44Last up this morning biggest loser on Monday were biotech stocks and that
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00:03:48probably had something to do with Moderna, which was down over 6% on the day.
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00:03:53So certainly no change in trend for either of those.
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00:03:57Okay everyone, that is all for Tuesday morning.
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00:04:00As you can see, while Monday got some very
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00:04:03positive headlines, it really didn't do anything.
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00:04:06The trade is still to the downside and not expecting any trend changes on Tuesday,
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00:04:12but we may see some additional sell signals.
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00:04:14Enjoy the rest of your day.
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00:04:16Next time you'll hear my voice is on Wednesday morning.