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Canadian Stock Market Trends 01242024

Good morning, everyone. Welcome to Wednesday morning. It’s Stephen Whiteside here from In the pre-market this morning, stock index futures and commodities are above fair value, so we are looking for some buying at the open on Wednesday morning. Now, the VIX continued to move lower yesterday. That’s supportive for higher stock prices. The Dow had a little pullback yesterday. It had something to do with 3M. We came into yesterday’s trading action already on a sell signal, looking for lower prices. Our next two targets Our target targets were 100 and then 93.75. We almost got down to 93.75 yesterday with a low of 94.11. If 93.75 breaks, then 87.50 would be our next target to the downside. In the pre-market this morning, the big winner is Netflix, which is up sharply, already on a buy signal coming into Wednesday’s trading action. Now moving on to the Canadian stock market. The TSX and the TSX-60 We have generated buy signals as of Tuesday’s close, joining mid-caps already on a buy signal, moving up to retest the recent highs. Then we’ve got small caps back on a buy signal, still waiting for the venture exchange to join the party.

Now, so far, the winners in 2024 have just been a handful of sectors. Infotec has been the big winner, followed by telecom services, followed by consumer staples, and then we’ve got industrials, and the real estate stocks have come back over the past few days. So that’s what’s been holding the Canadian market up. What’s not been working is anything commodity-related, and that may be about to change. So whether you’re looking at base metals or gold stocks or the general mining sector, they’re still all on sell signals here. We’ve got materials moving up into the channel yesterday. Canadian bank stocks are still on a sell signal. That could change today with the Bank of Canada announcement coming out this morning. And then we’ve got energy stocks, energy stocks holding the December lows. We haven’t broken down below those, so that could be a bullish sign going forward. Now, looking at those Canadian banks, we’ve still got some real weakness here with the Bank of Nova Scotia and the TD Bank. Otherwise, we do have some Canadian bank stocks back on buy signals right now, including the Bank of Montreal. Unfortunately, the Bank of Nova Scotia made a new low for this move on Tuesday.

We’re still waiting for the CIBC to join the National Bank on a buy signal as of Tuesday’s close. Then we’re still waiting for the Royal Bank. We need to close above 133.78. We closed at 133.74 yesterday. So again, right on the edge of a new buy signal. And then the TD Bank has traded in the channel for the past couple of days, looking for a close above 82.01 on Wednesday to give us a buy signal. Now, we’ve got a similar situation for Canadian Western Bank. We’re looking for a close above $30.16 on Wednesday to give us a buy signal, which would join Laurentian Bank already on a buy signal. Let’s finish off today with a couple of commodity stocks. The most widely followed energy stock on the Stockhouse Bullboards is BayTex. Still on a sell signal here, looking for a close on Wednesday above $4.21. Athabasca still on a buy signal here. That would change with a close below $4.32. And then we’ve got Tamarack back on a buy signal as of Tuesday’s close. Looking at mining stocks, Canadian Nickel is the big winner. Things would change on Wednesday with a close below a $1.55.

And then we’ve got Ivanhoe making a new high for this move on Tuesday. Okay, folks, that is all for this morning’s presentation. It looks like we’re going to have some buying at the open on Wednesday morning. We also have gold and crude oil trading higher, which could help the Canadian stock market. Have a great day. Next time you’ll hear my voice is on Thursday morning.

Stephen Whiteside
Wednesday, January 24, 2024

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