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00:00:00Good Morning, everyone, and welcome to Wednesday morning.
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00:00:02It's Stephen Whitside here from theuptrend.com.
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00:00:06In the premarket this morning, things are fairly calm out there.
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00:00:08Stock index futures are slightly
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00:00:10below fair value at the present time.
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00:00:13Let's start off with a little housekeeping.
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00:00:15We have some construction ahead.
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00:00:17We are putting up a new front end to the website over the next couple
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00:00:21of days, and we are going to move the back end, and that's the most
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00:00:25important thing, is the login page to the back end of the website
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00:00:30where you get all your charts and reports.
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00:00:32It's going to be moved, and so we'll be posting a new connection
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00:00:36between the front page and the back end.
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00:00:39So just be aware of that.
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00:00:40We're going to be doing it in the
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00:00:42middle of the day, which is the quietest period for us.
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00:00:45Most of the activity is after 8 PM
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00:00:47at night or first thing in the morning.
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00:00:50And so we'll be doing that.
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00:00:51Hopefully it'll go smoothly.
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00:00:53But yeah, sometime in the next day or so, you'll see a new homepage
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00:00:57and we'll have a new link to get into the back end.
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00:01:01Okay, folks, let's get back to the markets.
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00:01:03And what we're going to do is we're
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00:01:05going to walk through quite a few charts very quickly here.
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00:01:08And of course, you can pause the video at any time.
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00:01:11It looks like the market hit a wall of resistance and has paused.
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00:01:16It hasn't reversed, it hasn't broken down.
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00:01:18So you can flip a coin whether we're going to be able to break
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00:01:22through and go higher or we're going to go lower.
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00:01:24There's no
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00:01:25strong evidence that we're going to break down on Wednesday or Thursday.
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00:01:30We'll just have to wait and see.
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00:01:32But it's important to note that we
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00:01:33have hit this resistance and stopped.
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00:01:36Now, one of the stocks that I follow is Goldman Sachs.
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00:01:39It is trying to break out above
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00:01:41328.13. Now, we do not have an order in at 328.13. The reason for
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00:01:46that, it is too close to where we bought Goldman Sachs.
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00:01:49So Goldman Sachs is currently on a buy signal that would change on
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00:01:53Wednesday if Goldman Sachs closed below 317.49. Now, since the buy
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00:02:00signal has happened, the pros have not come back to take control.
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00:02:04So the longer that they do not come
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00:02:06back to take control, the less confident we are in our trade.
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00:02:10But we took the trade because price momentum shifted and started
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00:02:14to move up and closed above the upper channel line.
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00:02:17Those are the rules.
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00:02:18Now we're waiting to see what happens next.
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00:02:20We're long this particular stock, but it is stuck at resistance.
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00:02:27Now, yesterday I noticed that the DOW hit resistance.
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00:02:30The DOW transports have backed away
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00:02:33from resistance, and the DOW utilities are at resistance.
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00:02:38That's unusual that all three of the DOW indexes are all at resistance.
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00:02:43But then we've got the Nasdaq 100, the Nasdaq, the Russell 2000 tried
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00:02:49to break out above 18 12.50 and has pulled back.
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00:02:53We've got the XAU, the big winner recently, up at 137.50, closed at
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00:02:59138 but did not take out the high from back in January.
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00:03:03So this could be where we put in a top for the XAU.
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00:03:07But obviously with a blue bar there, that hasn't started yet.
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00:03:11Then look at consumer discretionary
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00:03:13consumer staples, both that resistance.
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00:03:17Then we've got the real estate
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00:03:20sector, excuse me, at 37.50. Then we've got energy stocks.
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00:03:24And you see the big pop that we had on Monday?
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00:03:26Didn't hit 87.50. So if you had an
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00:03:29order in up there, unfortunately, that didn't get filled.
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00:03:31Of course, your order at 84.38 got
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00:03:34filled at the open at the higher price.
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00:03:37But then we pulled back, we're using $84.38 as support.
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00:03:41But it looks like on Monday we put in a lower high.
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00:03:45That's a bearish sign.
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00:03:47Then oil and gas equipment getting
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00:03:49stuck at $ 81.25. Then we've got bank stocks trying
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00:03:53to break out above $37.50, and so far they've been unable to do that.
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00:03:58Looking for support at 34.38.
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00:04:01Then we've got health care stocks at 131.
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00:04:0425. Then we've got materials at 81.
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00:04:0925.
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00:04:09Then we've got metals and mining at 53.
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00:04:1213.
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00:04:13Then we're looking at technology stocks.
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00:04:15The SPY technology ETF is at 150.
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00:04:20Then looking at the Canadian market,
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00:04:21the TSX 60 is at 1218.75. Then we're looking at small caps.
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00:04:27Then we're looking at the venture
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00:04:29exchange, has basically put in a lower high on Monday, and we've
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00:04:34obviously got previous resistance from a couple of weeks ago.
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00:04:38And we'll just have to see how that works out.
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00:04:40Now, not included in the recent
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00:04:42rally, of course, has been the cannabis sector, which is basically
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00:04:45the dog of the Canadian stock market.
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00:04:47It has lost 50 % of its value over
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00:04:49the past few months and sitting right on 25 yesterday.
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00:04:54So if 25 doesn't hold, then 21.88 would be our next target.
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00:04:58Of course, cannabis is a subsector of the health care sector, which is
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00:05:03trying to hold 18.75, closing at 18.82 yesterday.
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00:05:07Then we've got consumer staples up
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00:05:10there trying to break out above 875.
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00:05:12Then we've got financials trying to break out above resistance.
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00:05:16Then we've got the banking stocks also moving up to resistance.
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00:05:20Then we're looking at base metals up to resistance and pulling back.
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00:05:25Then we're looking at industrials trying to make a new high here.
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00:05:28You can see this level has acted as resistance over the past few months.
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00:05:32And if we go back to December, you
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00:05:35can see the high there from the middle of December.
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00:05:38That is going to be an important level to break out above.
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00:05:41Then we're looking at InfoTech at 168.75, closing at 168.
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00:05:4860.
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00:05:48And then last up, we're looking at utilities.
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00:05:51And you can look at this level at
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00:05:53312.50 and look back here where we've peaked in the past.
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00:05:57And I'm not sure if we're going to be able to do a three peed.
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00:06:00Of course, if we can break out
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00:06:01above a double top, that is a bullish sign.
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00:06:04So we'll have to see how the market
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00:06:06handles that over the next few days.
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00:06:08Last up, a look at the VIX.
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00:06:10The VIX closed slightly higher yesterday.
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00:06:13We're looking for a close on Wednesday above
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00:06:1621.85 to tell us that something new is going on in the option market.
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00:06:21Okay, folks, that's all for this morning's presentation.
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00:06:23It's awfully quiet out there this morning.
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00:06:26We are coming into a long weekend.
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00:06:28Those employment numbers are coming out on Friday, and that might put
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00:06:32the market on pause until those numbers come out.
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00:06:36Have a great day.
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00:06:36Next time you'll hear my voice is on Thursday morning. you..