Is It Time To Sell- 09072023

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Good morning, everyone, and welcome to Thursday Morning.
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It's Stephen Whiteside here from the uptrend.com in the pre market this
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morning, stock index futures are below fair value, being led lower by the Nasdaq.
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We do have jobless claims coming out at
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830, and that could certainly add to the pre market volatility.
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Now, on Wednesday, we saw the VIX continue to move higher.
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That's not good for stocks on Thursday.
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We're looking for a close above 15.51. Now, with the VIX moving up over the past
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couple of days, it's been enough to roll the Dow over.
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The Dow is back on a sell signal as of Wednesday's close.
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Now, the biggest hit to the Dow on Wednesday was Apple.
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Apple came down sharply, bounced off the lower channel line.
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So a close below yesterday's low on
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Thursday would give us a sell signal for Apple.
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Now, the other stocks that pulled the Dow down were already on sell signals, whether
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you're looking at Boeing, followed by Amgen, followed by Johnson Johnson, then
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McDonald's and American Express, and then we've got Merck and Goldman Sachs, all
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already on sell signals, all moving lower, pulling the Dow down on Wednesday.
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Now, all of that selling was not enough to give us a sell signal for the S&P 500.
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So again, a close below yesterday's low would give us a sell signal on Thursday.
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And the Nasdaq still holding up fairly well, closing at the upper channel line.
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So while the Nasdaq is leading us lower in
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the pre market, it looks like the S& P 500 will be the next to roll over.
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Then we've got the Russell 2000 sitting
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right on the lower channel line, so not too much farther to go for a sell signal.
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And that would join micro caps that rolled over on Wednesday.
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Now, looking at sectors, the biggest drag on the US.
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Markets on Wednesday were the regional banks, followed by the banks themselves.
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And of course, there's lots of talk out
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there that some of these banks are going to get downgraded soon, and I guess
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investors are trying to get ahead of that happening.
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Of course, the biggest tell is going to be
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if we can hold the August lows as we move lower in September.
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Then looking at the Canadian market, we saw a lot of weakness yesterday.
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The TSX, the TSX 60, mid caps and small caps all pulled back into the channel,
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while the micro caps are back on a sell signal as of Wednesday's close.
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What worked yesterday?
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Well, Magna was up.
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We saw Canadian Apartments move up yesterday.
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We saw a new high for this move for Sun Life.
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Then we've got Saputo moving up slightly
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on the day, still on a buy signal here that would change on Thursday with a close
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below $28.47. Then Sonovis made a new high for this move on Wednesday.
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Then looking at what didn't work, well, Enbridge was the biggest loser yesterday,
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gapping lower, I guess they disappointed investors.
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Then we've got Algonquin Power back on a sell signal.
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We've got restaurants, brands back on a sell signal.
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We've got TC Energy just holding above the
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lower channel line, so a close below 48 42 on Thursday would give us a sell signal.
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Then looking at Emera hitting a new low for this move.
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It's been on a sell signal since late July.
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Last up a quick look at bond yields.
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And bond yields moved up on Wednesday whether you're looking at the five year or
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the ten year, and that can certainly spook the market if that trend continues.
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And of course, if bond yields are moving up, we may see bonds move lower.
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The TLT actually ticked up yesterday, the XBB ticked up yesterday.
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What didn't work was the emerging markets
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and junk bonds were both down on Wednesday.
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Okay, folks, that's all for Thursday morning.
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Still waiting for jobless claims.
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They could certainly add to the pre market volatility, but so far it looks like the
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market wants to do some selling at the Open on Thursday morning.
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Thank you very much for your time and attention.
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Next time you'll hear my voice is on Friday morning.