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Stock Market Timing Television – 05042023

Good Morning, everyone, and welcome to Thursday morning. It’s Stephen White side here from the In the premarket this morning, stock index futures are below fair value. So so far, it looks like we’re going to see some selling at the open on Thursday morning. A lot of the focus this morning is on those US regional banks. Looking at the VIX, the VIX had an inside day yesterday, closed right at the upper channel line. We still need to close on Thursday above 1844 to give us a buy signal. Of course, a buy signal for the VIX would be negative for the overall stock market. The DOW diamonds are now back on a sell signal as of Wednesday’s close, joining the iShares for the TSX 60. We also have the S&P 500 back on a sell signal. It didn’t close below the previous day’s low, so that is acting as support at the moment, but we are going to open lower on Thursday morning. Then the queues are still on a buy signal. Technology stocks held up fairly well yesterday, looking for a close on Thursday below 315.85. Now, the US banking sector is still very stressed at the moment.

There’s the Bank ETF making a new closing low for this move. Not a new low, but we’re going to do that this morning. There’s lots of news about regional banks out in the premarket, and that’s putting downward pressure on the overall market. Jp Morgan, once again, back on a sell signal. So twice it gapped higher, twice it gave up those gains, and we’re back on a sell signal as of Wednesday’s close. Now, the TD Bank is coming into Thursday on a sell signal on both sides of the border, but it is trading higher in the premarket this morning, and that has a lot to do with the fact they’ve given up their quest to buy a US regional bank. Now, remember, TD Bank has been the target of short sellers and very vocal short sellers. You can be short of stock and not be vocal about it, but these short sellers have been trying to talk the stock down and the stock is going in the opposite direction this morning. And so we should see some short covering to get this stock to pop at the open. Then looking at US Bank Corp, we made a new low for this move yesterday.

We’re continuing lower this morning. And a stock that’s really in the news this morning is PacWest. This regional bank is down over 36 % in the premarket and that would certainly be a new low for this stock. And then looking at Goldman Sachs, currently short this stock and it made a new low for this move on Wednesday. The biggest loser in the US financial sector yesterday was market access, down over 6 % on the day. Looking at crude oil, crude oil was down once again on Wednesday. It is up slightly in the premarket this morning, but not enough to change anybody’s mind on this sector. Canadian energy stocks were down 1.66 % yesterday. One of the biggest losers was Baytex Energy, which is down nearly 3 % on the day. In the US, US energy stocks were down 1.89 %. Biggest loser in this sector is Marathon Petroleum, which was down nearly 6 % on the day. Okay, folks, that’s all I wanted to talk about this morning. I’ll be back on Friday morning, and at that time, we’ll walk through the 10 most actively traded stocks on both sides of the border. Have a great day.

Next time you hear my voice again is on Friday morning.
Stephen Whiteside

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