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00:00:00Good morning everyone. Welcome to Tuesday morning.
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00:00:03It's Stephen Whiteside here from
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00:00:04theuptrend.com in the pre market this morning.
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00:00:07Things are very, very quiet out there.
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00:00:09You'd think we were waiting for the Fed
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00:00:11meeting but no, that's not what's happening today.
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00:00:14Things are just overly quiet in the pre market on Tuesday morning.
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00:00:19Let's start off this morning's
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00:00:20presentation looking at the VIX and the VIX is still on a sell signal.
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00:00:23That of course is is historically supportive for higher stock prices and
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00:00:28coming into month end that's what you kind of expect to happen.
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00:00:32At the same time there's these new zero
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00:00:34day options that are out there and a lot of people are concerned that that's going
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00:00:38to affect the usefulness of following the VIX.
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00:00:43And I don't totally agree that is
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00:00:46certainly possible, but we need to give it some time to see how the VIX correlates
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00:00:51with the movement of the stock market
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00:00:55moving on to currencies, the US dollar index had an inside day on Monday.
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00:00:59Big pullback yesterday for bonds and that
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00:01:02of course put upward pressure on bond yields.
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00:01:05Then we've got the price of gold pulling back yesterday I was down over $23.
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00:01:10It's up $6 in the pre market on Tuesday morning.
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00:01:13Silver also had a small pullback yesterday.
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00:01:15Crude oil had a nice big update and it's up again in the pre market this morning.
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00:01:20That certainly helped energy stocks move up on Monday.
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00:01:24Natural gas unfortunately not going anywhere at the moment.
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00:01:27Down again on Monday.
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00:01:29Then looking at the major stock market index ETFs.
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00:01:34We had the Dow Diamonds trade up to the upper channel line yesterday.
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00:01:37A close above 324.
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00:01:3980 would give us a new buy signal on Tuesday.
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00:01:42Then looking at the SPY, we're looking for a close above 397.
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00:01:4630.
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00:01:47Then looking at the QQQ'S, still on a buy signal.
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00:01:50Things would change on Tuesday with a close below 301.86.
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00:01:54Semiconductors pulled back again yesterday so down two days in a row.
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00:01:58Looking for a close on Tuesday below 197.
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00:02:0286.
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00:02:03Then we're looking at the Ishares for the TSX 60 trading up in the channel.
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00:02:08A close above 29.
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00:02:0995 would give us a buy signal on Tuesday.
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00:02:12Now we certainly saw some interesting
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00:02:14trading in the financial sector over the last couple of days.
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00:02:17Apparently a lot of people went home short
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00:02:20the financial sector on Friday expecting or anticipating some bad news to come out
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00:02:27over the weekend, maybe another bank failure, who knows?
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00:02:30But what happened was there was no new bad
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00:02:33news over the weekend and so those overnight short positions got covered at
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00:02:38the open on Monday morning and that caused the market to gap higher.
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00:02:42Whether you're looking at the overall financial sector, you're looking at banks,
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00:02:46you're looking at insurance companies or broker dealers.
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00:02:49They all gapped higher.
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00:02:51And it was also true for the Canadian
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00:02:53market with Canadian financials, canadian banks also gapping higher on Monday.
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00:02:58I would expect the gains that we saw
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00:02:59yesterday to dissipate over the next few days.
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00:03:02There's certainly no rush to get back into the financial sector on Tuesday morning.
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00:03:07Now looking at energy stocks, they got a nice pop yesterday on the back of the
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00:03:12rising crude oil prices and that happened on both sides of the border.
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00:03:17For the SPY Energy ETF, we're looking for a close above 80.
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00:03:2146 on Tuesday to give us a buy signal.
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00:03:25Now, gold stocks moved down ever so
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00:03:27slightly yesterday on both sides of the border.
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00:03:30So no major rush to get out of the gold
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00:03:32sector even with that pullback in the price of gold yesterday.
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00:03:37Let's finish off today's presentation.
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00:03:39Looking at those big cap tech stocks that
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00:03:41are helping hold the market up at the moment.
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00:03:43Now, Apple pulled back just under $2
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00:03:46yesterday, didn't close below the previous day's low.
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00:03:49I was hoping that Apple would have hit 162.
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00:03:5150 by now, but has not done so.
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00:03:54So that's kind of disappointing.
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00:03:56Then we've got Microsoft pulling back yesterday.
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00:03:58Both stocks are still trading above the
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00:04:00upper channel line, so not overly concerned just yet.
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00:04:04Shopify, on the other hand, has dipped
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00:04:06into the channel for the past couple of days.
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00:04:08Shopify on the TSX needs a close below 59 63 to give us a sell signal on Tuesday.
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00:04:14And then looking at Tesla, tesla was up a dollar 40 yesterday.
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00:04:18So not a big move for Tesla on Monday.
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00:04:21Looking for a close below 183 41 to give us a sell signal on Tuesday.
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00:04:27Okay folks, that is all for this morning's presentation.
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00:04:30It's extremely quiet out there this morning.
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00:04:32You'd think the market was waiting for something.
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00:04:34Consumer confidence numbers come out at 10:00 a.m..
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00:04:37This morning.
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00:04:37I'm not sure the market is holding its breath for those, but who knows.
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00:04:41So we are going to start off on a very quiet footing on Tuesday morning.
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00:04:46Enjoy the rest of your day.
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00:04:48Next time you'll hear my voice is on Wednesday morning.