Good morning, everyone, and welcome to Tuesday morning. It’s Stephen Whiteside here from theuptrend.com. In this presentation, we’re going to take a very quick look at the US market and then head into the Canadian market and we’ll end the presentation. Taking a look at commodity prices in the pre market this morning. Things are mixed. Stock index futures are trading above and below fair value. The Dow and the S&P 500 are slightly higher while the Nasdaq is slightly lower. And we’ve got commodities down across the board with gold down about $10 in the pre market on Tuesday morning. Well, we’ve got some premarket action. We’ve got Palantir giving up yesterday’s gains. We’ve got Lucid giving up yesterday’s gains, and we’ve got Tesla giving up yesterday’s gains in the pre market. That’s putting a little pressure on the Nasdaq. So far yesterday, the VIX ended unchanged on the day, so that’s still supportive for higher stock prices. Things would change on Tuesday if the VIX were to close above 1625 now. Yes, you anticipated that we might see a pullback for Apple and for Amgen on Monday and that’s exactly what happened. What I didn’t anticipate was it really wouldn’t have much effect on the rest of the markets as they continued to push higher on Monday.
Now moving on to the Canadian stock market. Both the TSX and the TSX 60 had big updates yesterday. I consider these high risk trades to jump in here at this particular time. But if you’re a short term trader and you’re taking both sides of the market, this is what you have to do. We’ve also got mid caps and small caps back on buy signals. Joining the venture exchange already on a buy signal. Now, when we look at the sectors, it was, infotech was the big winner yesterday, just like in the US. The materials, energy, of course, materials and energy are the most widely traded stocks in the country. So let’s walk through some of these. Starting off with Infotech, you can see we’re back on a buy signal here. And the big winner yesterday was Hut 8 back on a buy signal. No joy yet for Bitfarms. It was up over 5% on the day. And then Celestica is back on a buy signal as of Monday’s close. And then of course, the elephant in the room is Shopify. And Shopify may be looking pretty bullish here. First of all, we made a higher low last week and now we’re taking out this recent high, so that’s looking pretty good.
We may get a run up here, but we do have earnings coming out this week that could certainly interfere or just help throw the stock sharply higher. We’ll just have to wait and see. Then, looking at Materials, we’re still on a buy signal here. We had a nice update yesterday for Capstone, and then First Majestic Silver is back on a buy signal. And then Fortuna. Those were the three big winners in this sector. What’s not working just yet is Barrick. Still on a sell signal, and we still got a divergence between Barrick and Agnico Eagle, which is still on a buy signal. It’s interesting to watch Barrick trade in sync with the price of gold. Then looking at the Energy sector, the index was able to trade back up into the channel yesterday. The big winner in this sector was Baytex on Monday. Not enough to give us a buy signal, unlike Birchcliff, which is back on a buy signal as of Monday’s close. We also have ARX back on a buy signal, closing above the upper channel line by one penny. The elephant in the room is Canadian Natural Resources, still looking for a close on Tuesday above $105.61. Then looking at industrials, we’re back on a buy signal as of Monday’s close.
The big winner on the day was Badger. Not enough to give this stock a buy signal, unlike SNC, which is back on a buy signal as of Monday’s close, joining Bombardier, making a new high for this move on Monday. And of course the railways are the big players in the industrial sector with the CN back on a buy signal. Unfortunately, CP still needs to close above $112.61. Then let’s finish off with financials. A big update yesterday for the Financial sector being led higher by Great West Life. And then when we’re looking at the banks, the biggest bank of course, is the Royal Bank, which made a new high for this move, heading up towards the highs from early April. And then the biggest insurance company, of course, is Manulife. Again, it had a nice big day yesterday, again heading up towards those highs from late March. Then we’ve got Fairfax still on a buy signal here, looking to see if it can take out the recent high from March. And the big winner for the last month has been. Go easy. That stock has been the best performer in the financial sector over the last month.
What hasn’t been working over the last month is TD Bank, which came out with a sell signal on Friday. On Thursday, excuse me, on Friday, there’s where the open was. So you could have got out of the TD bank right there and then we ended the day way down here. So not pretty picture for the TD bank, which has been struggling for quite a while. Let’s finish off looking at the world of commodities, starting with crude oil. Crude oil is holding the 7813 level, starting to trade below that in the pre market this morning. If we start breaking down, of course, our next target is $75. Natural gas. Second day of a buy signal here and as I mentioned previously, we want to give natural gas a little more room. It has been struggling for quite a while, so I was looking for a move above 261 as a potential indication that something new is happening in the natural gas market. So far, that hasn’t happened. Looking at metals, copper’s bounced off the lower channel line, closing above it. Once again, no joy for gold. It was up $22.60 yesterday. It’s down $10 in the pre market this morning.
So we’re not really breaking down here, just not continuing to go higher. Silver had a nice move up yesterday. It’s pulling back in the pre market, so no joy yet for the price of silver. Okay, folks, that is all for this morning’s presentation so far. It looks like we’re going to have a mixed open in the north american markets on Tuesday morning. Enjoy the rest of your day. Next time you’ll hear my voice is on Wednesday morning. And at that time, we’ll take a look at the most actively traded stocks on both sides of the border.
Thank you for watching today’s presentation. If you found this video useful, please consider hitting the like button, sharing it, and subscribing to our channel to ensure you never miss a video. We look forward to having you join us for our next daily market update.
Stephen Whiteside
TheUpTrend.com
Tuesday, May 7, 2024
