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00:00:00Good morning everyone. Welcome to Friday morning.
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00:00:03In the premarket this morning we see Asian
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00:00:05markets closed higher overnight, we've got.
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00:00:07European markets trading higher this morning and.
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00:00:10We'Ve got stock index futures in North.
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00:00:12America trading slightly above fair value.
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00:00:15So so far it looks like we're going to have a quiet to a.
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00:00:18Positive opening at 930 Friday morning.
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00:00:22Lots of interesting stuff going on.
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00:00:24We've had a lot of after hours activity and I guess Netflix led that off.
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00:00:30Netflix reported after hours last night,
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00:00:33it traded down to the lower channel line yesterday but did not close below it.
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00:00:37So it's still on a buy signal here.
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00:00:39It is trading up nicely in the pre market
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00:00:41this morning, trading back up at the levels we saw a couple of days ago.
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00:00:46And so this stock has recently made a
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00:00:48higher high and it might be able to do that again today.
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00:00:52Our next mathematical target just above the recent highs is 343 75.
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00:00:59And so if you're still long Netflix, I'd
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00:01:00be wanting to take some money off the table up at that level.
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00:01:04Looking at the Dow, we talked about the Dow diamonds being back on a sell signal.
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00:01:08We also talked about the early warning signal at the top of the screen.
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00:01:11Now that is also true for the Dow Transports and the Dow Utilities.
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00:01:16Now speaking of after hours action, a couple of stocks announced layoffs today
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00:01:22and so we've got Alphabet laying a bunch of people off.
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00:01:25It is trading higher this morning, still on a buy signal.
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00:01:28Wayfair is also laying off a bunch of people and just like Netflix, we traded
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00:01:33down to the lower channel line yesterday, did not close below it.
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00:01:36We were down $2.13 at the close yesterday.
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00:01:40We're up $2.34 in the pre market this morning.
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00:01:44So we'll be up at the upper channel line at the open on Friday morning.
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00:01:49Now a lot of strange things have happened in the past few weeks.
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00:01:53Of course we've got a nice rally to start January off, but we're also seeing money
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00:01:57come out of consumer staples ahead of consumer discretionary.
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00:02:01Now the market has been acting as if the recession is already over, but.
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00:02:06At the same time you can see corporations
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00:02:08are acting as it is still coming such as Alphabet and Wayfair are continuing to lay
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00:02:14people off, that is ahead of the recession.
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00:02:18They're not doing that because the
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00:02:19recession is over and things are starting to turn around.
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00:02:22Now the metals have had a good week so far, so copper and gold both making new
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00:02:28highs this week and so that's helped the mining sector.
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00:02:31So the GDX is still in play here inside day yesterday, still on a buy signal.
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00:02:37Similar situation for the XEG, both still on buy signals here.
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00:02:42So no change there.
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00:02:44Now I've been waiting for the energy sector to come back.
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00:02:46We've got crude oil on a buy signal.
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00:02:49You can see that we recently put in a
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00:02:51higher low, and then we put in a higher high.
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00:02:54So that's a bullish sign for crude oil.
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00:02:57Unfortunately, we're not seeing that sort of action for natural gas at the moment.
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00:03:01Crude oil is trading up in the pre market
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00:03:03natural gas is trading down slightly in the pre market on Friday morning.
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00:03:08So the XLE is still on a buy signal here.
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00:03:12And the XEG is also still on a buy signal here.
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00:03:17So still looking for the energy sector to continue to move higher from here.
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00:03:22Now, the SPY ETF traded down to the lower channel line yesterday.
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00:03:25Still looking for a close on Friday below 388 49 to give us a sell signal.
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00:03:31Q's, traded back in the channel yesterday,
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00:03:33looking for a close below 271 77 on Friday.
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00:03:37And looking at the I shares for the TSX 60, we need a close below $30.0.57. Now
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00:03:45looking in the opposite direction, the VIX is still on a sell signal.
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00:03:48Traded up to the upper channel line
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00:03:50yesterday, looking for a close on Friday above 21.
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00:03:5448 to give us a buy signal.
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00:03:56And that, of course, would be negative for stocks.
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00:03:59Okay, folks, that is all for this morning's presentation.
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00:04:02Again, it looks like we're going to see a
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00:04:04little bit of buying at the open on Friday morning.
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00:04:07Enjoy the rest of your day.
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00:04:08Enjoy your weekend.
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00:04:10Next time you'll hear from us will be on Sunday.
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00:04:43Thank you.