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00:00:00Hey, good morning, everyone.
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00:00:02Welcome to Friday morning.
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00:00:03It's Stephen Whiteside here from theuptrend.com.
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00:00:06Well, we finally got a sell signal in
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00:00:08Apple, and it was a big one that we actually gapped lower, came down to
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00:00:12support, and currently holding support at 175.
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00:00:16If we take out the August lows, then 168.
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00:00:1975, 162.
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00:00:2050 come into play.
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00:00:22Now, the reason that Apple fell yesterday was because of news out of China.
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00:00:26Chinese stock market not doing well at the present time.
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00:00:30When you look at the chart of anything Chinese-related, you're going to see a lot
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00:00:34of white spaces, you're going to see a lot of gaps.
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00:00:37Anytime that you're tracking something from overseas, whether it's in Europe or
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00:00:42Asia, the information sources are all out of those areas.
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00:00:47There's always a delayed reaction to whatever happens.
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00:00:51You're never going to see a very smooth chart, lots of big gaps.
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00:00:55It's very, very hard to trade anything listed overseas.
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00:00:59Then looking at the VIX, the VIX traded through the upper channel line yesterday,
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00:01:02but actually closed slightly lower on the day, looking for a close on Friday above
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00:01:08$15.41 to give us a buy signal for the VIX.
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00:01:11That, of course, would be negative for stocks.
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00:01:13And yesterday was an inside day for the Dow.
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00:01:16The S&P 500 traded through the lower
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00:01:18channel line, still looking for a close below 444.30 on Friday.
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00:01:23And then for the Nasdaq 100, we bounced
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00:01:25off the lower channel line looking for a close below 369.94. Now,
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00:01:30semiconductors are back on a sell signal as of Thursday's close.
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00:01:34Invidea is back on a sell signal as of Thursday's close.
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00:01:38The Russell 2000 is back on a sell signal, joining micro caps
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00:01:43already on a sell signal starting to break down below the August lows.
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00:01:47So we have a new lower high and a lower low.
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00:01:50That, of course, is bearish.
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00:01:51And, of course, when people are getting
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00:01:53out of the microcap sector, that is the risk of trade.
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00:01:58Looking at the energy sector, we put in a high three days ago.
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00:02:01That gave us a bearish reversal signal.
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00:02:02So far, no major breakdown here, but that high is still in place.
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00:02:08Looking at the Canadian market, the TSX
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00:02:10and the TSX60, we saw the market trade down to the lower channel line.
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00:02:15So a close below yesterday's low for
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00:02:18either of those would give us a sell signal on Friday, which would join mid
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00:02:22caps and small caps already on a sell signal.
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00:02:25And oddly enough, we saw a little buying
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00:02:27in the venture exchange, which closed higher on Thursday.
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00:02:31Looking at the Canadian energy sector,
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00:02:33similar pattern to what's happening in the US.
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00:02:35Yesterday was an inside day or a day of indecision.
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00:02:38Then financials have rolled over, as have the banks.
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00:02:41So financial index back on a sell signal as of Thursday's close joining the banks,
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00:02:46which generated a sell signal on Wednesday.
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00:02:50In both cases, we're heading towards those August lows.
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00:02:53And if we want to be bullish here, we want those lows to hold.
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00:02:56If we want to be bearish, we want those lows to break.
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00:03:00Looking at gold, gold stocks had an inside day yesterday.
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00:03:03It was fairly quiet for gold, but not for silver.
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00:03:07Industrials came down hard, so they're looking to challenge the August lows.
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00:03:11Then we saw a lot of volatility in the information technology sector.
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00:03:15You can see they tried to fill the gap on
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00:03:17the way down and then came back, still closing slightly lower on the day and
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00:03:22really in sync with Shopify, not in sync with BlackBerry, which tumbled yesterday.
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00:03:28If you were trading BlackBerry, we go back
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00:03:31to when we got a buy signal on that day, on the next morning, you would have bought
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00:03:36at 6:21, that was the opening price or around there.
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00:03:39It's no guarantee you're going to get the
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00:03:41exact opening price, but let's say you bought at 6.21, you looked up, your
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00:03:46trading plan was to sell half at 6.64, then half of the remaining
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00:03:52position at 7.03, then half of the remaining position at 7.42. That's what
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00:03:57you were supposed to do, and that's what happened.
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00:03:59Yesterday, when the stock collapsed, you
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00:04:03were sitting with a very small position, already locking in a lot of profits.
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00:04:07Yesterday, we closed at 6.37, so still above the price that you bought in at.
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00:04:14It's still a profitable trade when you exit at the open on Friday morning.
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00:04:20Let's finish off with commodity prices.
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00:04:22It was an inside day for crude oil on Thursday.
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00:04:25We saw natural gas make a new low before closing slightly higher on the day.
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00:04:30This is not a very bullish chart at all as yesterday was a new lower low.
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00:04:36Then looking at copper, we're back on a
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00:04:38sell signal for copper joining joining gold.
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00:04:40Gold had an inside day on Thursday, so very quiet trading for gold on Thursday,
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00:04:45unlike silver, which continued to move lowers.
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00:04:48Okay, folks, that is all for this morning's presentation.
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00:04:52We posted over 15,000 charts last night,
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00:04:55and this is just, of course, some highlights.
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00:04:58I always short-change somebody.
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00:05:00I can't cover all the stocks in this presentation every morning.
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00:05:04I just try to hit on the major highlights that could affect the most people.
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00:05:09Sorry about missing your stock, but that's just the way things are.
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00:05:12If you want me to look at your stock, of
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00:05:14course, send me an email and I'll be glad to consider it.
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00:05:18But definitely, I'm short-changing somebody every single morning.
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00:05:23Stock index futures are below fair value right now.
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00:05:26There are no major economic numbers coming out on Friday morning.
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00:05:29So far, it looks like the market wants to do a little selling at the open.
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00:05:32Enjoy the rest of your day, enjoy your
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00:05:35weekend, and the next time you'll hear my voice is on Sunday.