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00:00:00Good morning, everyone, and welcome to Friday Morning.
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00:00:02It's Stephen Whiteside here from
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00:00:04theuptrend.com. Now, back in March, we had the big decline in regional banks, and
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00:00:09that put downward pressure on financial sectors in markets around the world.
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00:00:15Since then, the market has been mostly
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00:00:18focused on the nice, bright, shiny objects in the tech sector.
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00:00:23Those big caps tech stocks such as NVIDIA are still holding up fairly well.
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00:00:27That's holding up the Nasdaq 100, which dipped into the channel yesterday.
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00:00:31So we may see a sell signal in the Nasdaq
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00:00:34100 on Friday with a close below 358.97 for the triple Q's.
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00:00:40Now, regional banks made the big decline in March, seemed to stabilize, then
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00:00:45continue to trade lower in May, and they've come back in June.
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00:00:49But that has come to an end.
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00:00:50So in the month of June, we ran back up to
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00:00:53previous resistance and started to pull back.
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00:00:55I guess the big $64,000 question is, will
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00:00:59we hold the lows from May or will we continue lower?
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00:01:03Now, if we go back a month, we started to
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00:01:06break out above a downtrend line, and our target would have been the Fly Paper
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00:01:10channel, which was continuing to move lower daily.
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00:01:13And then here's the current chart.
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00:01:14We moved up to the Fly Paper channel,
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00:01:16started to pull back, and now we're breaking down below an uptrend line.
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00:01:21And so that is a bearish sign.
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00:01:23So we're looking to see if we can move back down to test the recent lows.
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00:01:28Looking at US bank stocks, the major banks are back on sell signals right now.
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00:01:32Canadian Financials, Canadian banks,
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00:01:34you'll notice that we recently put in a lower high, so that's a very bearish sign
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00:01:40ran up to fill an open gap and started to pull back.
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00:01:43Looking at Canadian banks.
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00:01:45Bank of Nova Scotia, CIBC National Bank,
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00:01:49Royal Bank, and now the TD Bank, which is also now back on a sell signal.
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00:01:54What's holding up? The Bank of Montreal did trade through the
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00:01:57lower channel line yesterday, but did not close below it.
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00:02:00So looking for a close below 117
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00:02:03.05 on Friday to give us a sell signal for the bank of Montreal.
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00:02:07Looking at us.
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00:02:08Banks, and we're looking at the major ones here.
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00:02:11Bank of America, bank of New York, citigroup.
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00:02:15JPMorgan, wells Fargo.
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00:02:17All back on sell signals.
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00:02:19We also have Goldman Sachs, which is on its third day of a sell signal.
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00:02:23So not a pretty picture here.
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00:02:26Let's finish off this morning's
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00:02:27presentation, taking a look at credit card stocks.
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00:02:30And American Express is more of a bank
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00:02:32than a credit card company, but it is back on a sell signal.
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00:02:35We've got Capital One on a sell signal now.
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00:02:38Discovery, Mastercard and Visa are still on buy signals, so looks like the credit
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00:02:44card companies are holding up much better than the banks at the present time.
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00:02:48Okay, folks, that is all for this morning's presentation.
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00:02:51Have a great day.
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00:02:52Next time you'll hear my voice is later this morning.