Good morning, everyone, and welcome to Wednesday morning. It’s Stephen Whiteside here from theuptrend.com. Well, there is a disturbance in the force. The VIX gave us a buy signal yesterday that is negative for stocks. Things would change on Wednesday if the VIX were to close below 13.15.
Now, in the pre market this morning, stock index futures are below fair value, not by much. Commodities, on the other hand, are moving higher, with gold making a new high on Wednesday morning. Now the Dow is back on a sell signal as of Tuesday’s close. The S&P 500 ETF is still on a buy signal. That would change on Wednesday with a close below $518.08.
Then, looking at the Nasdaq 100, we are back on a sell signal as of Tuesday’s close. We’ve got the Russell 2000 back on a sell signal. We’ve got microcap stocks back on a sell signal. Now, what worked on Tuesday? Well, it was the energy sector up over 1%, small gains in utilities and communication services, and the rest of the market traded lower.
Now there’s the energy sector making a new high for this move. We also had gold stocks up yesterday. They were up 1.28%. And silver stocks are playing a catch up. They’re up nearly 3% on the day.
So moving up towards the previous highs from late to December. Now, looking at the canadian market, looking at the TSX, still on a buy signal here. Small pullback yesterday. TSX 60 trading in the channel. So the possibility of a sell signal on Wednesday.
Then looking at mid caps, a small pullback, a new high for small caps. And we saw the venture exchange continue to move higher on Tuesday. Now, what worked? Well, just like in the US, it was the energy sector followed by materials. And of course materials includes gold stocks.
Everything else was lower on the day. And there’s the energy sector making a new high on Tuesday. We had materials making a new high. That’s on the back of the gold sector continuing to move up. What didn’t work?
Well, communications services was the big loser on the day. And you can see Roger is making a new low for 2024. Then infotech pulled back slightly. Hut 8 was the big loser on the day, trading back in the channel, so it closed below $12.09 would give us a sell signal on Wednesday. We’ve got industrials back on a sell signal.
Bombardier is also back on a sell signal as of Tuesday’s close. Then looking at the financials, we’re back on a sell signal there, looking at some of the banks. Bank of Nova Scotia back on a sell signal as of Tuesday’s close, National Bank, we’re looking for a close below $112.51 and we closed at $112.48. And so if you haven’t already locked in some profits, today would be a good day to do so. Now the TD bank, we were concerned about it trying to get over its 200 day moving average and it rolled over on Tuesday and is back on a sell signal.
Let’s finish off today’s presentation, taking a look at some of the TSX most actives, and the most actively traded stock. Yesterday was TC Energy filling the open gap and then pulling back. So no change in trend there. We’re back on a sell signal for Athabasca, new high for Baytex and a lot of energy stocks made new highs on Tuesday. Then we’re looking at CIBC and we’re looking for a close below $67.52.
We closed at $67.63 on Tuesday. Canopy Growth closed higher on the day, still closing and trading above the upper channel line. Then we’ve got b two gold still struggling here, closing higher on the day. No joy for BCE making a new low for 2024. Then we’ve got BlackBerry back on a buy signal as of Tuesday’s close.
Canadian Natural Resources making a new high on Tuesday and Crescent Point also making a new high on Tuesday. Okay folks, that is all for this morning’s presentation. So far the overall stock market looks like it wants to sell off. At the same time, we’ve got gold and crude oil trading up in the premarket. Energy inventories come out later this morning that could affect energy prices.
We’ll just have to wait and see. But so far it’s looking pretty bullish for the commodity sector. Of course, if you haven’t locked in some profits along the way, today would be a good day to do so. Enjoy the rest of your day. Next time you’ll hear my voice is on Thursday morning and at that time we’ll take a closer look at the US stock market.
Stephen Whiteside
TheUpTrend.com
Wednesday, April 3, 2024
