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Canadian Stock Market Outlook 02272024

Good morning, everyone, and welcome to Tuesday morning. It’s Stephen Whiteside here from In the pre-market this morning, things are fairly quiet out there. Stock index futures trading right around fair value. We do have consumer confidence coming out later this morning, and that could add some volatility to the markets. Looking at the VIX, the VIX is still on a sell signal here. Inside day yesterday. Of course, inside day is a day of indecision, so the market generally had a pause day. Fairly quiet trading Starting for the Dow, for the S&P 500, and for the Nasdaq 100. We continue to see interest in the mid-caps and small-cap stocks right now, which is a healthy sign for the market. Well, hopefully that will continue over time. Now, looking We did the Canadian market, it was fairly quiet on Monday. We did see a pullback for the TSX and the TSX-60, but we did not close below the previous day’s low. Mid-caps and small-caps had an inside day, while the Venture Exchange actually closed higher on the day, so no trend there. We’re still on a buy signal for the venture exchange. What worked on Monday, while InfoTech and Energy were the big winners, utilities, real estate were the losers, with utilities being the biggest loser of the day.

Looking at InfoTech, we’re still on a sell signal here. It would be helpful if we could get Shopify to get back on a buy signal, but we do have Bitfarm with a big reversal day yesterday, shooting right back up to the previous There’s highs. Celestica made a new high on Monday, no change there. Inside day for Docebo with a small pullback. Then we saw a new high for CGI before closing lower on the day. No joy for Lightspeed, and unfortunately, no joy for Opentext. Moving on to the energy sector. Energy stocks made a new high for this move on Monday. Athabasca made a new high. We’ve got Birchcliff just treading water at the moment, still on a buy signal here. We saw a Bayek close higher by five cents on Monday. Looking at Crescent Point, we added nine cents. And then looking at Cenovus, Cenovus was up 15 cents on the day with a new closing high for this move. And We’re going to be looking at White Cap and Inside Day on Monday, no change in trend. Now, we’ve got Canadian banks releasing earnings this week, and we’re getting some today. The financial sector hit a new high yesterday before pulling back.

That had a lot to do with With Canadian banks pulling back, we’re sitting right on the upper channel line there, so not a very strong sector at the moment. We’ve got Bank of Montreal closing in the channel. We’ve got Bank of Nova Scotia closing in the channel, so those two Could certainly generate sell signals here. Little more interest in CIBC and the National Bank, but not by much. The Royal Bank still treading water here. Yes, we’re technically on a buy signal, but closing right under the upper channel line. So again, the Royal Bank has not been trending for a couple of months now. And then looking at the TD Bank, once again, we’ve got a bank closing in the channel. So we’re setting ourselves up here for some sell signals in the banking sector. Last up, let’s take a look at the gold mining stocks. And gold miners had an inside day on Monday, so there’s something hopeful. And we do have the price of gold up in the pre-market on Tuesday morning. Inside day for Barrick on Monday, new low for B2Gold, and then just a sample of a silver stock, Wheaton Precious Metals, new closing low, and a new low for this move for Wheaton.

Okay, folks, that is all for this morning’s presentation. So far, it looks like we’re going to have a fairly quiet open at 9:30. Have a great day. Next time, you’ll hear my voices on Wednesday morning, and at that time, we’ll take a closer look at the US stock market.

Stephen Whiteside
Tuesday, February 27, 2024

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