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00:00:00Good Morning, everyone. Welcome to Wednesday morning.
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00:00:03It's Stephen Whiteside here from theuptrend.com with a quick market update.
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00:00:08Well, yesterday was the biggest down day
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00:00:10of 2023, and we're not seeing any fall through to the downside this morning.
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00:00:15Stock index futures are currently above fair value.
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00:00:18DOW futures currently up 77 points.
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00:00:21Well, there was a couple of reasons for the big sell off yesterday.
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00:00:24One was that bond prices continued to move
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00:00:26lower and bond yields continued to move higher.
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00:00:30We also saw some earnings out that spook
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00:00:32the market with the Home Depot down over 7 %.
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00:00:36And of course, Home Depot is a DOW 30
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00:00:39stock, so it put pressure on the DOW and the S&P 500.
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00:00:44Well, if all things were in sync on
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00:00:46Tuesday, then you'd expect the VIX to be up.
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00:00:48And that's exactly what happened.
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00:00:50The VIX popped up above the 21.88
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00:00:53resistance level and ran right into the 200 day moving average.
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00:00:58So this is the time and place where the
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00:01:00market is going to try to pull the market back from the brink and try to
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00:01:06keep the VIX from jumping above the 200 day moving average.
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00:01:10Now, we've got a lot of new sell signals
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00:01:12and a lot of continuation to the downside from Tuesday's trading action.
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00:01:17So we've got all the major indices back on
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00:01:19sell signals, including the ishares for the TSX 60.
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00:01:23Second day of a sell signal there.
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00:01:25Now, when we divide the Canadian market up
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00:01:27by sector, you can see there were no winners on Tuesday.
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00:01:31The biggest loser was Healthcare followed by InfoTech.
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00:01:35Healthcare was led lower by Tilray.
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00:01:37Infotech was led lower by HUT 8.
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00:01:40In the US market, it was a similar situation.
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00:01:43Consumer Discretionary was the big loser
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00:01:46in the US market followed again by InfoTech.
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00:01:49Now Home Depot was the biggest loser within the consumer discretionary sector.
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00:01:55We've already looked at that stock.
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00:01:56Mohawk Industries was the second biggest loser.
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00:01:59Same type of business, they're in the
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00:02:02flooring business, so the renovation sector, down 6 % on the day.
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00:02:07Within InfoTech, Intel was the big loser, down 5.61 %.
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00:02:12Intel is in the DOW 30 and the $&P 500.
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00:02:16So it had a broad negative effect on Tuesday's trading action.
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00:02:21Now, it was interesting to look at the subsectors.
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00:02:23The biggest loser in the subsectors yesterday was retail followed by biotech,
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00:02:28followed by homebuilders and then semiconductors.
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00:02:32Those were the biggest losers from the US subsectors.
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00:02:36Now, last week we talked about four stocks
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00:02:39to watch, four canaries in the coal mine, and Apple has now rolled over.
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00:02:43It is back on a sell signal as of Tuesday's close.
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00:02:47Joining Microsoft and Shopify already on sell signals.
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00:02:52And then we're still waiting for Tesla.
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00:02:54On Wednesday, we need a close below 193.10. Tesla is still
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00:02:59dealing with the 200 day moving average, which is currently acting as a ceiling.
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00:03:04So looking for a close on Tuesday below
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00:03:07193.10 to give us a new sell signal for Tesla.
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00:03:11Okay, that's all for this morning's presentation.
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00:03:13I think things are fairly quiet out there
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00:03:15this morning because the market is waiting to see the Fed minutes.
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00:03:19Three weeks after a Fed meeting, they released the minutes.
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00:03:22They don't really release the whole transcript for five years for some reason,
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00:03:25but they are going to release the minutes this afternoon.
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00:03:29I think the market is waiting to see those before it takes the next step.
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00:03:34Enjoy the rest of your day.
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00:03:36Next time you'll hear my voice is on Thursday morning.