-
00:00:00Good morning everyone and welcome to Wednesday Morning.
-
00:00:03It's Stephen Whiteside here from theuptrend.com in the pre market this
-
00:00:07morning, stock index futures are above fair value.
-
00:00:10Dow futures currently up over 200 points.
-
00:00:12Commodities are mixed with crude oil higher, while gold is slightly lower.
-
00:00:17On Wednesday morning, there's a couple of stocks people are
-
00:00:21talking about in the pre market this morning.
-
00:00:23The first one is Lululemon.
-
00:00:24And if you look over here, there's a nice open gap as a potential target.
-
00:00:29But currently we are trading right above
-
00:00:32the top of that open gap, which is the top of the gap is at 168 44.
-
00:00:37We're currently trading just above that.
-
00:00:39Now if you're trading Lululemon and you've got orders in anywhere along here, 328.
-
00:00:4413, 343.75, 358.38.
-
00:00:48If you've got orders in anywhere there, they're going to get executed at the open.
-
00:00:52You may not get the exact opening price, but as soon as the market opens up at
-
00:00:58those levels, those orders will get executed.
-
00:01:00So congratulations anyone who's long lulu now microns in the news this morning.
-
00:01:06It's trading just above yesterday's high.
-
00:01:09So not a big up move this morning.
-
00:01:12If we look at our price target chart, if you look up at the
-
00:01:1564.06 level, you can see that that's acted as resistance several times.
-
00:01:21So we need to get out above the recent high, and if we can do that, then 62.
-
00:01:2650 and 64.06 come into play.
-
00:01:30That is certainly not the case based on
-
00:01:32what we're seeing in the pre market this morning.
-
00:01:35Moving on to the Canadian market and
-
00:01:37starting off with the TSX, we are currently holding the December lows and
-
00:01:42that's a pretty remarkable thing right now.
-
00:01:44There's a lot of symbols that have broken
-
00:01:46those December lows and of course we've got some that are been heading up over the
-
00:01:51last couple of weeks, but for the most part it's been a pretty weak market.
-
00:01:55Now we're at the bottom of the panic zones.
-
00:01:57We're starting to turn back up.
-
00:01:59There's a pressure zone form.
-
00:02:00This is the time and place we look for buying opportunities.
-
00:02:04It might not be the season where we can
-
00:02:07get a really extended rally here, but we'll just have to wait and see.
-
00:02:11Of course, if we take out those lows from last week, then a move down to retest the
-
00:02:17lows from September and October would certainly be something we would expect.
-
00:02:23Now the TSX traded up to the upper channel line yesterday, so a close above
-
00:02:27yesterday's high would give us a buy signal on Wednesday.
-
00:02:30That's also true for the TSX and for mid
-
00:02:33caps, while small caps and micro caps have already generated buy signals.
-
00:02:39Next up, we'll take a look at the sectors
-
00:02:41and see what's been working and what hasn't been working.
-
00:02:44Consumer staples have been up five days in a row, and yesterday the big winner was
-
00:02:48Jameson Wellness, which traded right up to the next price target.
-
00:02:52So congratulations. If you had an order in at 32.
-
00:02:5581. It got filled yesterday.
-
00:02:58And if we can take out yesterday's high, then we're looking for a move up to 34.
-
00:03:0238 as our next price target.
-
00:03:04Now, gold has certainly been leading the
-
00:03:07gold sector higher over the past couple of weeks.
-
00:03:10Had an inside day yesterday, still closing up over $17.
-
00:03:14It's down eight or $9 in the pre market this morning.
-
00:03:17And then gold stocks made a new closing high yesterday.
-
00:03:21And there's Barrack making, not making a new closing high yesterday.
-
00:03:26Still having trouble with this open gap.
-
00:03:28Seen the market trade into that open gap,
-
00:03:30but has not been able to break out above it.
-
00:03:33Looking for a move up to 26. 56.
-
00:03:36If we can take out last week's high.
-
00:03:39Now, what's not working right now?
-
00:03:41Well, cannabis stocks, which are always in
-
00:03:44the doghouse, it seems like we're down yesterday over 3%.
-
00:03:48And of course, the cannabis stocks are in
-
00:03:51the healthcare sector, so that pulled that part of the market down.
-
00:03:55Aurora Cannabis was down over 5%, Tilray
-
00:03:59was down over 4% and is back on a sell signal.
-
00:04:03And Canopy Growth was also down over 4%.
-
00:04:06Of course, anything that's
-
00:04:09interest rate related has been hit hard over the past few weeks.
-
00:04:13And the real estate sector looks like this.
-
00:04:15And there's First Cap which looks like this.
-
00:04:18And so we're not certainly not expecting a change in trend on Wednesday.
-
00:04:22And of course, anything financial has been hit hard.
-
00:04:26There's the TSX Financial Index which has traded down below the December low.
-
00:04:31So that is a bearish sign.
-
00:04:33We are at the time and place where we look
-
00:04:35for new buy signals and it's certainly not going to be in CI Financial on Wednesday
-
00:04:41or GoEasy, which was the biggest loser on Tuesday, down over 9%.
-
00:04:46TD bank, on the other hand, pushed up yesterday into the channel and we're
-
00:04:51looking for a close above $80.07 on Wednesday.
-
00:04:56Now, crude oil has been up the past few days.
-
00:04:59It's up again in the pre market this morning.
-
00:05:01That's put a bid into the energy sector, which traded up to the upper channel line
-
00:05:06yesterday, as did Cenovus , while Imperial Oil and Canadian Natural Resources just
-
00:05:12two examples of the big cap stocks that generated buy signals on Tuesday.
-
00:05:17Okay folks, that is all for this morning's presentation.
-
00:05:20Futures are up in the pre market this morning, and why wouldn't they be?
-
00:05:24We are coming into month end and quarter
-
00:05:27end and I would expect that we do see some buying over the next couple of days.
-
00:05:32Whether it's going to start a new uptrend that could last into the end of April or
-
00:05:36if it's going to fizzle out early next week, only time will tell.
-
00:05:41Have a great day, folks.
-
00:05:42Next time you'll hear my voice is on Thursday morning.