US Market Outlook 01312024

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Good morning, everyone, and welcome to Wednesday morning.
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It's Stephen Whiteside here from TheUpTrend.com.
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In the pre-market this morning, things are fairly mixed.
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We do have the Dow trading higher while the S&P 500 and Nasdaq are trading lower.
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Now, the Dow is being led higher this morning by Walmart, which announced a
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stock split, and it is trading up, filling the open gap from back in November.
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Now, it is month-end.
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Month-end usually has a bullish bias to it, but this week is a little different.
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We've got a lot of earnings There's a lot of economic numbers coming out.
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We also have the Fed meeting going on, which concludes this afternoon.
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We always look for volatility to expand after the Fed meeting comes to an end.
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Looking at the VIX, the VIX is still on a
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sell signal here, but is trying to break out, and we're looking for a close above
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14.02 on Wednesday to tell us that something new is happening in the VIX.
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But we know that the VIX has traded up to
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15 over the past couple of weeks, and the market really hasn't been that concern.
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So a breakout above 15 would certainly be a sign that the market is starting to
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change its bias from being bullish to being bearish.
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Looking at the Dow, it made a new high yesterday on the back of J.
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P. Morgan and Goldman Sachs.
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What didn't work on the Dow on Tuesday?
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Well, Boeing was down.
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It's still holding 200.
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It is still holding 200 in the pre-market.
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But if it starts to break down, then that
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would probably head us down towards the October lows.
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Now, we had a small pullback in the S&P 500 on Tuesday.
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The big winner was MSCI, gapping up over 9% on the day.
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At the same time, we had UPS gaping lower, down over 8% on the day.
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Fairly quiet trading for the Nasdaq 100, going into all the earnings.
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We had an inside day for the Nasdaq 100.
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The big winner was Vertex Pharmaceuticals.
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At the same time, we also hear that Novo Nordisk is up in European trading this
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morning, and it is now valued at more than $500 billion.
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It's the second European company to do that.
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Now, what didn't work on the Nasdaq 100
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yesterday was DoorDash and setting up for a potential sell signal on Wednesday with
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a close below $104.59. Now, we had an inside day for the
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Russell 2000, an inside day for US microcaps.
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Technology stocks fairly quiet yesterday.
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We may see a sell signal today.
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There's lots of the big cap tech stocks
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trading lower this morning, and we do have Apple back on a sell signal.
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Now, semiconductors already on a sell signal, so no change in trend there.
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Now, when we look at sectors, what worked
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on Tuesday was the energy sector with crude oil trading higher.
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The USO was up, and then it was the Oil and Gas Explorers
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up 1.78%. The energy sector itself was up just a little over 1%, and then it was
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Marathon Petroleum was the big winner, up over 6% on the day.
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We also had financials trade higher, a new
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high for the Financials ETF, and Citigroup was up over 5% on the day.
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So Citigroup gapping higher on Tuesday.
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Then looking at the Magnificent 8, and a lot of these are trading down sharply in
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the pre-market this morning, so we may see some additional sell signals.
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We've got Alphabets still on a buy signal.
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It's down in the pre-market this morning.
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We also have Apple back on a sell buy signal as of Tuesday's close.
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We were concerned about Apple not being able to get up to $200.
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Then we've got Amazon still on a buy signal here.
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We've got Meta making a new high yesterday.
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New high for Microsoft on Tuesday, new high for NVIDIA.
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Then looking at Tesla, no change in trend for Tesla.
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Now, Tesla was able to trade up into the gap.
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It did not close above the high of that day.
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We are We're looking at Tesla actually
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trading lower in the pre-market this morning, so no change in trend for Tesla.
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Let's finish off looking at the miners.
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We've got copper miners still on a buy signal here inside day on Tuesday.
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The GLD is back on a buy signal, still waiting for the gold miners.
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We're looking for a close for the GDX
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above $28.54 on Wednesday to give us a buy signal.
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For the Junior Gold Miners, we're looking
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for a close above $34.77. We've got the silver on a buy signal right now.
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Silver Miners also on a buy signal trading back into the channel yesterday.
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So if we see some selling on Wednesday, we're looking for a close below $25.34.
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Okay, folks, that is all for this morning's presentation.
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There's a lot of pre-market action this morning, most of it to the downside.
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Of course, we don't act on pre-market activity.
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We wait until we see the actual closing
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price, and we are looking for volatility to expand this afternoon after the Fed
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meeting comes to an end and they start speaking to the public.
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Have a great day on Wednesday, folks.
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Next time you'll hear my voice is on Thursday morning, and at that time, we'll
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take a closer look at the Canadian stock market.
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Market.

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