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00:00:01Good morning, everyone, and welcome to Wednesday morning.
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00:00:03It's Stephen Whiteside here from theuptrend.
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00:00:05com. While it is very early in the morning,
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00:00:09stock index futures are trading above fair value.
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00:00:11Commodities are mixed with crude oil
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00:00:13higher while gold is lower in the pre market on Wednesday morning.
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00:00:17Well, yesterday we saw a little bit of tension in the market.
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00:00:20The VIX is back on a buy signal as of Tuesday's close.
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00:00:25Things would change on Wednesday with a close below 13.
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00:00:2859.
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00:00:29Now, it was the Dow that rolled over yesterday.
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00:00:32The Nasdaq was the biggest loser, but the Dow actually generated a sell signal.
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00:00:36Now again, for people that are new, this is a short term sell signal.
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00:00:40More conservative investors are going to
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00:00:42need more evidence before they start selling.
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00:00:46The Dow Diamonds stuck up here at 390.
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00:00:4963.
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00:00:50And as you can see on the midterm chart,
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00:00:52we have a little ways to go before we actually generate a sell signal.
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00:00:56It was all about technology stocks yesterday.
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00:00:58Intel was the biggest loser on the Dow.
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00:01:00It's still on a buy signal.
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00:01:01No change there.
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00:01:03Salesforce was the second biggest loser, down over 5% on the day.
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00:01:07Trading down to the lower channel line.
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00:01:08Still looking for a close on Wednesday
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00:01:10below 296 24 to give us a new daily sell signal.
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00:01:15We do have a change in trend for Microsoft.
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00:01:17Back on a sell signal, putting in a lower high.
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00:01:20We had trouble getting over 421. 80.
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00:01:23That is still a major area of resistance for Microsoft.
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00:01:27Apple continued lower down nearly 3% on
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00:01:30the day, heading towards our next target of 168.
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00:01:3375.
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00:01:34Then we've got Unitedhealth Group making a new low for this move on Tuesday.
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00:01:41Now one stock that the market is still
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00:01:43concerned about, of course, is New York Community Bank Corp.
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00:01:46It made a low on Monday inside day on Tuesday.
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00:01:49Inside days are basically pause days, so that has not been resolved yet.
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00:01:55And then what did work on Tuesday?
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00:01:57Well, Nvidia actually closed higher on the day.
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00:02:00It is trading up in the pre market this morning.
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00:02:02Our next price target is 875, which we've previously hit.
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00:02:06It is trading below that level in the pre market on Wednesday morning.
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00:02:11Now Shopify has been on a sell signal for a few weeks now, so no change there.
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00:02:15We've got Tesla back on a sell signal on Monday, fallow through to the downside on
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00:02:19Tuesday, looking to see if it can hold the February low.
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00:02:23Let's finish off this morning's
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00:02:25presentation, taking a look at commodity stocks.
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00:02:27And we'll start off with the miners.
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00:02:29And we've got copper still on a buy signal here.
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00:02:32Copper miners traded down to the lower channel line yesterday.
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00:02:35So certainly a potential for a sell signal on Wednesday.
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00:02:39We had a lot of bearish reversal signals on Tuesday.
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00:02:42The price of gold wasn't.
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00:02:45The GLD is trading up towards 200.
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00:02:48It's trading slightly lower in the pre market this morning.
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00:02:51Now, we do have a bearish reversal signal for the gold miners.
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00:02:54It traded up to the previous high and pulled back.
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00:02:58Now, it did not close lower on the day and
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00:03:01it did not close below the previous day's low.
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00:03:03So it is a very weak bearish reversal signal for the big cap miners.
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00:03:08They were up over half a percent.
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00:03:10The junior miners were up just slightly on
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00:03:13the day, so there's not as much interest in the juniors at the moment.
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00:03:18And of course, we'd love to see more interest in the juniors than the big caps.
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00:03:22Silver reversed yesterday, closing lower on the day.
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00:03:26There's the SLV closing lower on the day.
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00:03:29After making a new high for this move, and
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00:03:31then looking at silver miners again, we made a new high for this move.
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00:03:35This is this move right here.
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00:03:38But unfortunately we closed lower on the day, so that is a bit of a concern.
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00:03:43Looking at the energy sector, starting off
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00:03:45with crude oil, we pulled back in the channel yesterday.
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00:03:48A close below 72.
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00:03:4987 would give us a sell signal for the USO on Wednesday.
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00:03:53Gasoline is back on a sell signal as of Tuesday's close.
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00:03:56You can see we put in a lower high last Friday.
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00:04:00And then looking at natural gas, we're still on a buy signal here.
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00:04:05Moving up on Tuesday.
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00:04:07Now, looking at the major energy etfs for
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00:04:10the big caps, we're still on a buy signal here.
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00:04:12No change. No change for the small cap energy stocks.
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00:04:16We closed slightly higher on the day we've
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00:04:19closed in the channel for the past couple of days.
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00:04:20So a little concern there.
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00:04:22Looking for a close on Wednesday below 51.
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00:04:2543.
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00:04:26Now, anytime you're looking at an ETF or an index, it's a group of stocks, so it is
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00:04:32going to filter out the best performers and the worst performers.
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00:04:35In this case, the only energy stock in the Dow 30 is Chevron.
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00:04:40It's been on a sell signal for a few days now.
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00:04:42Now, the best performing energy stock on
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00:04:44the S&P 500 from Tuesday's trading action is Baker Hughes, which has barely moved
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00:04:50since generating a buy signal over a week ago.
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00:04:53On the other hand, the best performing big
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00:04:55cap energy stock is Diamondback, which is up about 20% in the last month.
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00:05:00Yesterday had an inside day and looking for a close on Wednesday below 176.
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00:05:0751.
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00:05:09Okay, folks, that is all for this morning's presentation.
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00:05:12Looking for a positive open on Wednesday.
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00:05:15From what we're seeing so far, we do have some economic numbers coming out today.
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00:05:19We've got some job numbers.
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00:05:20And then, of course, we have the energy numbers coming out later in the morning,
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00:05:25which could change the direction of the market.
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00:05:28Have a great day.
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00:05:29Next time you'll hear my voice is on Thursday morning.
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00:05:31And at that time, we'll take a closer look at the canadian stock market.