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00:00:00Good morning everyone. Welcome to Tuesday morning.
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00:00:02It's Stephen Whiteside here from TheUpTrend.com.
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00:00:05Well, we saw a little tension in the market yesterday, not enough to give
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00:00:09us any major trend changes.
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00:00:11Things are fairly quiet on Tuesday
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00:00:13morning, so let's dive in and take a look at yesterday's trading action.
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00:00:17Starting off, take a look at, at the VIX.
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00:00:19The VIX did close higher yesterday, didn't close above the previous days high.
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00:00:23Still trading below the lower channel line, so no major damage so far.
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00:00:28Looking for a close above 22.
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00:00:2940 on Tuesday to give us a buy signal for the VIX.
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00:00:33Of course, a VIX on a buy signal is quite negative for stocks.
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00:00:37US Dollar Index made a new low yesterday
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00:00:39before reversing closing higher on the day.
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00:00:41Again, we're still trading below the lower
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00:00:43Channel line, so no damage to the stock market so far.
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00:00:47And bonds had a fairly quiet day yesterday.
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00:00:49Inside day for the 30 year bond.
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00:00:52Moving on to commodities, the price of
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00:00:54gold had a wild day on Tuesday, made a new high for this move,
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00:00:57before losing it all going into the close.
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00:00:59Certainly closed below the previous days low, so that's looking bearish things
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00:01:04would change for gold on Tuesday with the close below 1762.
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00:01:0893.
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00:01:09Now we had a similar wild day for crude
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00:01:11oil trading up above the upper channel line before losing it all.
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00:01:14Going into the close.
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00:01:15We are still on a daily sell signal for
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00:01:18crude oil and we're still on a daily sell signal for natural gas.
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00:01:22Not only was natural gas down sharply
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00:01:24again on Tuesday, it also closed below the previous low from back in October.
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00:01:29So that's a bearish sign.
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00:01:31Now looking at the major stock market
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00:01:33index ETF's, we saw the Dow diamonds move back into the channel.
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00:01:37Looking for a close on Tuesday below 338.01.
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00:01:40Looking at the SPY, we need a close below 396.
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00:01:4478.
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00:01:45Looking at the triple Q's, we're looking for a close below 283.
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00:01:4865.
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00:01:50And then looking at the Canadian market,
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00:01:51the Ishares for the TSX 60, sitting right on the edge of a new daily sell signal.
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00:01:56Looking for a close below 30.
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00:01:5892 on Tuesday to give us a sell signal for the Ishares.
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00:02:03Now, what's holding the TSX back?
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00:02:06Well, of course, weakness and commodities yesterday,
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00:02:09did not help at all.
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00:02:10And looking at the Ishares for the energy
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00:02:13sector coming down and testing the lows from back in November.
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00:02:17Similar situation in the US.
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00:02:19With the Spider energy ETF coming back.
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00:02:22To those previous lows, and we may break those on Tuesday.
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00:02:26And then looking at gold miners, the GDX
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00:02:29was down 3.61 percent yesterday, sitting right at the upper channel line.
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00:02:34Closed on Tuesday below 28.04 would give us a sell signal.
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00:02:38Not as much selling in the Canadian market.
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00:02:41Remember, it is a global gold index, not just Canadian stocks.
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00:02:46We saw a move down of 1.85 percent, did
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00:02:50not close below the previous days low, so holding up better than the GDX.
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00:02:54Then a couple of technology stocks.
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00:02:56Apple had a wild day yesterday.
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00:02:58It traded above the upper channel line before losing it going into the close.
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00:03:01So we are still on a daily sell signal for Apple.
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00:03:04We're still on a daily buy signal for Tesla.
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00:03:07But we came right back down to the lower
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00:03:08channel line looking for a close below 181.
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00:03:1159 on Tuesday to give us a sell signal there.
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00:03:14And last up, Chinese stocks have been
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00:03:17performing really well over the past month.
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00:03:19I haven't focused on them.
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00:03:20I do not want to encourage people to get involved.
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00:03:23But there's baidu.
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00:03:24Baidu's had a great couple of weeks. Now.
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00:03:27Obviously, in hindsight, taking the signals would
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00:03:30have been very profitable.
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00:03:31But only anything Chinese is like playing musical chairs right now.
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00:03:36You don't know what's going to happen next.
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00:03:38They still have huge economic risks.
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00:03:40They've got social unrest and they've got
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00:03:42those droughts that are really holding the country back.
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00:03:46So don't know what's going to snap next, but something's probably going to snap and
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00:03:49that's probably take the Chinese stock market down.
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00:03:53And then of course, you've got the US.
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00:03:55Government delisting a lot of these
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00:03:58companies and that's been going on all year.
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00:04:00So, yeah, the charts are working.
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00:04:03You could have made money, and I just am
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00:04:05not going to recommend anybody get involved in the Chinese stock market.
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00:04:10Okay, folks, that's all for Tuesday morning.
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00:04:12Thank you very much for your time and attention.
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00:04:14And the next time you'll hear my
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00:04:15voice is on Wednesday morning, you.