Canadian Stock Market Outlook 01302024

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Good morning, everyone, and welcome to Tuesday morning.
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It's Stephen Whiteside here from TheUpTrend.
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om.
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In the pre-market this morning, things are fairly quiet.
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Stock index futures are trading a little below fair value.
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Commodities are mixed with crude oil flat,
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while gold is slightly higher on Tuesday morning.
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Now, this is an extremely busy week for the market.
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We've got a Fed meeting starting today.
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We've got lots of earnings coming out, and
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we also have lots of economic numbers coming out.
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So it could certainly end up being a volatile week.
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Now, historically, we are coming into month end.
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Usually has a bullish bias to it, but that
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just might not be the case this week with all that's going on.
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Now, moving on to the Canadian market.
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The TSX is trading up at the top of the panic zones right now, and this is a very
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high-risk time to be putting new money into the market.
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But we are on a short-term buy signal.
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We saw some weakness recently.
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Our chart, which is designed for swing
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traders, our right-side chart, currently on a buy signal.
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That would change on Tuesday with a close below 20,902.
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Now, in our database, we also have a
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midterm chart, which is more designed for position traders, and it certainly gives
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the market a little more room to breathe down towards 20,600.
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We'll be watching these charts closely
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over the next few weeks to see if we do get any new sell signals.
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But right now, the market is still pointing higher.
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We've got the TSX on a buy signal, the TSX-60, mid-caps, small caps, but
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unfortunately, micro-caps haven't caught up yet.
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That could certainly happen on Tuesday.
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What worked, what didn't work on Monday?
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Well, Infotex, just like in the US, led
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the market higher while energy stocks were down on the day.
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That's crazy because if you were watching the news yesterday, there's a lot
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happening in the Middle East and not all good.
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We did see a new high for this move for crude oil before reversing.
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Now, it reversed but didn't close below
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the previous day's low, so not as bad as it could have been.
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The first sign, something new, of course,
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is if we close below the previous day's low on any chart.
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Looking for a move up to 81.25 this week,
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which would take us back up to what was support back in October.
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And then from there we would expect to
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move up to 87.50. That is not happening on Tuesday morning.
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Now, looking at the HOU, the Leveraged ETF, it had an inside day yesterday.
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And then looking at energy stocks, the XEG
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also had an inside day on Monday, so no change in trend for those.
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Suncor closed down slightly yesterday.
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Canadian Natural Resources has been in the channel for the last three days, so
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certainly the possibility of a sell signal on Tuesday with a close below 84.93.
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Now, we're not expecting a trend change for Whitecap or Bayex or Cenovus .
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They're all holding up fairly well.
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And then moving on to technology stocks.
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This is where all the money made on Monday.
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A new high for the index, new high for the XIT ETF.
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Then we've got Celestica making a new closing high yesterday.
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We had Shopify up over 2%.
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Then we've got Bitfarm's back on a buy signal there.
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A new high for Constellation software, new high for CGI.
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Then we've got Dye & Durham back on a buy signal as of Monday's close.
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New high for Enghouse here.
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And We've got Lightspeed back on a buy signal as of Monday's close.
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Then we're looking at Open Text making a new closing high yesterday.
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What didn't work, unfortunately, the most followed stock on the stock house
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billboards, Pyrogenesis, is on its second day of a sell signal, so no joy there.
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Okay, folks, that's all I wanted to cover this morning.
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The winners in the tech sector,
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unfortunately, the losers yesterday, and not by much less than 1%.
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That was the energy sector, and hopefully, things can turn around
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for that sector, which is still on a buy signal at the present time.
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Have a great day, folks.
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Next time you'll hear my voice is on Wednesday morning.
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Morning.

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