Stock Market Trends- 08222023

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Hello, everyone, and welcome to Tuesday morning.
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It's Stephen Whiteside here from theuptrend.
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com.
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In the premarket this morning, stock index futures are above fair value.
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So far, it looks like we're going to see
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some buying at the open on Tuesday morning.
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Now, yesterday was all about the Nasdaq
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and it was really overdone, but it is what it is.
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So the Nasdaq move higher.
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So far, support at 13,125 is holding.
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The biggest reason the Nasdaq popped yesterday was NVIDIA, which is up over 8%.
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No justification for that move, and I certainly wouldn't chase it up here.
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Earnings are coming out later this week,
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and it looks like it's going to be a buy the rumors, sell the news type situation.
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Of course, I could be wrong, but up at
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these levels, it's not worth chasing NVIDIA.
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Now, a lot of the other tech stocks also moved higher.
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We had Tesla up as well.
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Tesla is getting pretty close to a buy signal here.
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We're looking for a close above $240.23 on Tuesday for Tesla.
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Need a little more work for Apple and Meta.
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Microsoft traded up into the channel yesterday, so a close above
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325.49 would give us a buy signal on Tuesday and no joy for Shopify.
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Now the Dow dragged most of yesterday.
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And if you're watching the news or
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listening to the news on the radio, of course, they're going to focus on the Dow.
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Now the Dow dragged yesterday because of
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Johnson & Johnson, but it really doesn't affect Johnson & Johnson shareholders.
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They're spinning off a company.
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So while the stock was down, it really
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doesn't hurt the wallets of Johnson & Johnson shareholders.
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Now, when we look at sector activity, the
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majority of sectors in the US were actually down yesterday.
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It was Infotech, of course, was the big leader.
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That's also true in Canada, where only two
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of the sectors were up yesterday, Infotech and Materials.
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Otherwise, the rest of the market was down.
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Now, one stock that stood out to for me on
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Monday was Goldman Sachs, which continued to move lower.
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It has now filled the open gap.
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We're still projecting lower prices here,
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but obviously, the support from the lows in late June and early July down at
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312.50, that's going to be a big area of support and certainly a big tell for the
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market if Goldman Sachs were to break through that.
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So far, 320.31 is holding and that gap has now been filled.
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So we'll have to see if Goldman Sachs can turn around at this point.
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Now, what didn't work yesterday or what
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didn't move in favor of the stock market moving higher was interest rates.
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The five-year yield, the 10-year yield, and the 30-year yield all moved up on
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Monday, and that's not going to help the stock market over the long term.
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So we'll just have to see how long yesterday's enthusiasm lasts.
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Currencies, we saw the US dollar index
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pull back ever so slightly just five ticks, and we saw the euro move up as
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well, but certainly no major changes in trend for either of those currencies.
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Now moving over looking at commodity prices, we saw the price of crude oil
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trade up into the channel, but then pulled back and closed slightly lower on the day.
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We saw a little move up in natural gas, but no change in trend.
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The price of wheat, which people
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continually ask me about, is pretty stable right now.
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It's still on a sell signal, still trading below the lower channel line.
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We recently put in a double top.
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Will we put in a double bottom?
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Well, we should be able to find that out over the next few days.
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Then looking at copper, it moved up yesterday.
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That helped some of the mining stocks.
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We also saw gold move up, but not that much.
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Silver is back on a buy signal.
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But if we take a look at gold, you can see we've made a series
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of major lower high and a lower low recently, so that is still very bearish.
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We are coming down to the bottom of the
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panic zones, a pressure zone is starting to form.
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Major support is not that far away back down at the lows from late February.
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And if those don't hold at the 1875 level, if we look on the weekly chart here, you
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can see 1750 would be our next target below that.
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And of course, that would match up with
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our longer term projections on the weekly panic zone chart.
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Those haven't happened yet.
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We haven't broken down, and silver is turning around and heading back up.
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That could help pull the price of gold up, and we would certainly take a buy signal
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in gold if it were to happen in the not so distant future.
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Okay, folks, that is all for this morning's presentation.
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Have a great day.
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Next time you'll hear my voice is on Wednesday morning.