Morning Market Outlook 12142023

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Good morning, everyone, and welcome to Thursday morning.
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It's Stephen Whiteside here from theuptrend.
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Com. In the pre-market this morning, stock
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index, futures, and commodities are above fair value.
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Now, we do have some economic numbers coming out at 8:30.
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Retail sales, jobless claims, they could
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certainly change the direction of the market.
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But so far, things are looking pretty bullish.
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Now, yesterday, the VIX was on a sell signal.
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Once again, it is still on a sell signal this morning.
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That would change if the VIX were to close above 13.23. We did see Panic Buying
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yesterday, and that is a good thing and a bad thing.
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It's a good thing because it takes us to
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new highs and gives people the opportunity to sell into strength.
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At the same time, it's usually often seen as the end of a move.
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Remember, we look for selling opportunities when we see Panic Buying,
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just like we look for buying opportunities when we see Panic Selling.
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Yesterday may be the start of the end of
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this particular move for the market, but it's certainly a nice thing to see, and
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hopefully everybody got a chance to take some money off the table.
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If you know somebody who thinks that yesterday's market activity is a reason to
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get into the market or to start buying additional, putting new money into the
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market, please, dissuade them from doing that.
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That would be a terrible thing to put new money into the market at this point.
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We want to be buying on pullbacks, not
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buying into strength like we saw yesterday.
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Now, it was really all about the bond market.
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Look at the 10-year note, how much it was up yesterday.
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That is a huge move.
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Remember, the bond market is much bigger than the stock market.
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With bonds going up, bond yields went down sharply.
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That helped fuel the stock market rally.
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We also saw the US Dollar index roll over.
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That's supportive for higher stock prices and led to other currencies moving up,
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such as the Canadian dollar, which has been on a buy signal for a few weeks now.
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The price of gold shot up.
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It's up again in the premarket this
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morning, so quite a wild move for the price of gold.
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Then looking at the Dow, new all-time high
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for the Dow yesterday being led higher by Walgreens and Home Depot.
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What didn't work on the Dow?
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Well, Verizon was the biggest loser, not by much, but it was a huge up day
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yesterday and Verizon was going in the opposite direction.
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The S&P 500 also made a new high yesterday, being led higher by Vertex,
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which was up 13 and a quarter %, third day of a buy signal for that stock.
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Then looking at Rivvity, it was up over 10 % on the day.
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What didn't work on the S&P 500?
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Well, it was Pfizer, Pfizer was down
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nearly 7 % on the day, so it's been on a cell signal for a couple of weeks now.
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Looking at the QQQ's, new high for the triple queues, what
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didn't work yesterday was the Magnificent 8.
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We really didn't see a lot of participation yesterday.
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Look at the alphabet.
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Alphabet was up 33 cents on the day.
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We've got Amazon moving up heading towards 150.
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We had Apple having a great day heading up to 200.
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We didn't see much going on for Meta.
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Meta ended the day up 52 cents.
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Then we saw Microsoft down a penny on the day.
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Then looking at NVIDIA, yeah, it continue to move higher, but not by much.
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Then Shopify on both sides of the border was up on the day, but still attached to
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the channel, so not really trending at all.
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Then we've got Tesla.
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Tesla trading through the lower channel
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line yesterday before ending the day higher, but just by less than 1 %.
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Obviously, the market is moving away from following the Magnificent 8 higher, and
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that the rally that we are expecting into year end has started to broaden out.
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We've seen the other sectors lead the
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market higher yesterday, such as cyber security, mobile payments, robotics, and
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semiconductors, all pushed higher on Wednesday.
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Looking at the Canadian market, the TSX was able to move back up to previous
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resistance, while the TSX-60 was able to punch through.
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A big reversal day for mid caps and small
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caps and even microcaps got involved yesterday.
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No major change in trend for microcaps,
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but they did end the day on a positive note.
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Now, the big winner yesterday on the
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Canadian market was Materials, with the price of gold shooting higher.
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We saw real estate move up nicely.
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We saw healthcare move up.
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Then gold stocks had a huge update on
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Wednesday up over 5% and back on a daily buy signal.
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Of course, the gold sector is within the material sector.
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Then financials had a big update as well.
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That's pretty impressive.
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Royal Bank making a new high for this move.
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Big upday for TD Bank, but still at the back of the bus at the moment.
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Brookfield was the biggest winner in the
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financial sector yesterday, up over four and a half %.
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What worked on the TSX?
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Well, the big winner on the TSX 60 was First Quantum up nearly 10 %.
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You'd hardly notice it based on the recent decline of this stock.
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The big loser on the TSX 60 was Dollarama,
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back on a sell signal as of Wednesday's close.
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On the TSX composite, we've got to K92
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Mining was the big winner, up over 12 % on the day.
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The big loser on the TSX was NextGen
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Energy, which was down at over two and a half % on the day, still on a buy signal.
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No change in trend there.
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Okay, folks, that is all for this morning's presentation.
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Congratulations. If you had profit targets hit yesterday
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and got to lock in some additional profits, so that is absolutely wonderful.
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Otherwise, there's not much else to do with your current holdings.
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There are new opportunities in the gold sector.
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For some reason, the market has taken a shine to gold once again, and gold stocks
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a lot of new buy signals based on yesterday's trading action.
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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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