Hello, everyone. Welcome to Friday morning. I hope everyone’s had a wonderful week. It’s been very profitable for those of you that have been along the Bear ETFs this week, and that looks like it’s going to continue on Friday. Currently, the Dow futures are down another just under 200 points.
Looking at the VIX, the VIX made a new high, new closing high yesterday, looking like it’s going to break out and make a higher high on Friday. Things would change on Friday if we closed below $15.10. We only had a couple of major trend changes this week, but for the most part, things have been going in the previous direction. Whether you’re looking at the US. Dollar, it moved up again yesterday, so the trend is still intact.
Bonds continue to move lower on Thursday. Bond yields continue to move higher. The price of gold continued to move lower on Thursday. Crude oil has pulled back and is on a sell signal. We are looking at resistance up here, and it looks like it couldn’t break out and make higher highs.
We also saw a natural gas pull back. So that has very little to do with what happened to the TSX this week. You look at the TSX 60, we made a new low yesterday. We moved up and filled the open gap and then pulled back fairly quickly. And that had a lot more to do with financials and bank stocks than the energy sector.
And certainly the miners have been down this week as well. If you’ve been following us, we’ve talked about the fact that the Bank of Nova Scotia looked like it was the weakest on the way up, and it is the strongest on the way down. And so the weakest stock has been taken to the woodshed, as opposed to the strongest bank stock, which has barely fallen so far. So shorting the TD Bank not a good thing. Shorting the Bank in Nova Scotia has been a good thing.
So what worked on the way up is also working on the way down. Looking at the Dow, the S&P 500, the Nasdaq, and the Semiconductors, they all made new lows on Thursday, so no change in trend there. And then looking at commodity stocks, the Canadian energy sector still holding up. The US. Energy sector saw some weakness on Wednesday, generating a new sell signal and then a move up on Thursday.
So the market still loves energy stocks, certainly when you compare those to anything technology related. And then gold stocks have been on a sell signal since July, and that continues on Thursday, where we made a lower low. Now, if you’re not playing the Bear ETFs right now, well, shame on you. Anybody who’s done a one on one tutorial with me, I’ve walked through the importance of having a balanced portfolio. So it’s 2X ETFs in Canada, 3X ETFs in the US.
And they are working well at the moment. Okay, that’s all I wanted to cover this morning. The webinar we did the other day. I’m editing that video. It’ll probably be out by the end of the day, but otherwise looking for lower stock prices and higher prices for our Bear ETFs on Friday.
Enjoy the rest of the day. Enjoy your weekend. Next time you’ll hear my voice is on Sunday.
Stephen Whiteside
Friday, August 18, 2023
