Skip to content

Morning Market Outlook 01092024

Good morning everyone, and welcome to Tuesday morning. It’s Stephen Whiteside here from Well, odly enough, this morning’s stock index futures look very similar to what they looked like at this time yesterday morning. But during the day yesterday, Nvidia came out with some news and Nvidia moved up sharply higher back on a buy signal as of Monday’s close. Now that had ripple effects across the markets yesterday and it is a one day event.

And I’m not going to get overly excited about what happened yesterday. A lot of things didn’t change at all and we’ll go through some of those semiconductors were up sharply yesterday. Still on a sell signal. No change there. We do have some other big cap tech stocks that we follow back on buy signals.

I wouldn’t chase any of these on Tuesday. We’ve got Meta, we’ve got Microsoft, we’ve got Shopify all on buy signals as of Monday’s close. What didn’t work? Well, Apple and Tesla are still on sell signals, so no change there. Now the real winners on Monday were actually the biotech sector and we saw the index up over 4% on the day, being led higher by Amgen and Moderna.

We also had other stocks in the pharmaceutical area also do well, including Abbot labs making a new high for this move on Monday. Now the triple qs traded up into the channel yesterday, not enough to give us a buy signal. The Dow Diamond still on a buy signal. The SPY ETF is back on a buy signal as of Monday’s close. I would wait and see if we get another close above the upper channel line before I would do anything.

The ishares for the TSX 60 made a new high yesterday for this move and still on a buy signal. No change there. Now the VIX came down to the lower channel line yesterday, did not close below it. So on Tuesday we’re looking for a close below 12.93. No change in trend for the VIX, for the Nasdaq, or for the Russell 2000.

Now I’d feel a little more bullish this morning if any of the VIX indices were back on sell signals. I’d also feel a bit more bullish this morning if the US Dollar Index started to trend lower and yesterday it had an inside day. I’d also be a little more bullish if we saw more buying in the bond market. The TLT closed higher yesterday, but didn’t close above the previous day’s high, and the XBB closed higher on Monday. But it had an inside day, so no real changes for the US dollar index or for the bonds.

Looking at commodities, crude oil closed lower yesterday, didn’t take out last week’s low just yet. We are looking for a close above 74.20 to give us a buy signal on Tuesday. Natural gas had a wide bar yesterday. It made a new high for this move, then closed slightly lower on the day, so no change there. Canadian energy stocks still on a buy signal.

That would change on Tuesday if the XEG closed below $15.62. We do have a lot of energy stocks that look like this. Cenovus is on a sell signal right now. At the same time, TC Energy and Enbridge made new highs on Monday. Then looking at us energy stocks, they’re back on a sell signal as of Monday’s close.

A lot of us energy stocks look like Conoco Phillips and Occidental Petroleum at the same time. We’ve got Phillips 66 still on a buy signal. That would change on Tuesday with a close below $133.16. Now the price of gold was down $16 yesterday. Still on a sell signal here it’s up $7 in the pre market.

We also have silver trading higher in the pre market. In both cases, it would not be enough to change the trend. New low for this move for the GDX and the XGD at the same time, silver stocks are holding Friday’s low, so no change there. Barrick traded right up to the upper channel line on Monday, so a close above 23.90 would give us a buy signal for Barrick on Tuesday. No joy for Kinross.

New low for this move. No joy for B2Gold. Looks like it wants to try to hold $4 as support there. We’ll have to keep an eye on that and see if we can get any upward momentum for B2Gold. And last up this morning, Boeing is still in the news again today.

It is trading lower once again in the pre market this morning. Not taking out yesterday’s low just yet, but certainly no change in direction for Boeing on Tuesday morning. Okay folks, that is all for this morning’s presentation. Yesterday was a wild day. It was led higher by Nvidia.

I wouldn’t chase anything on Tuesday. Yesterday was a one day event. We’re looking for fall through to the upside on Tuesday. And so far from what we’re seeing in the pre market this morning, the market just doesn’t want to do that. So if you have a symbol that generated a buy signal from Monday’s trading action, you can wait for the next close above the upper channel line to confirm that buy signal.

Otherwise, I would just stand aside on Tuesday morning. Have a great day. Next time you’ll hear my voice is on Wednesday morning.

[00:00:00]: Introduction
[00:00:30]: Market Recap
[00:01:14]: Biotech Sector Performance
[00:01:41]: ETF Signals
[00:02:01]: Market Sentiment Indicators
[00:02:34]: US Dollar and Bond Market Update
[00:02:57]: Commodities Review
[00:03:19]: Energy Stocks Analysis
[00:03:41]: Precious Metals Update
[00:04:23]: Boeing News

Stephen Whiteside
Tuesday, January 9, 2024

Print Friendly, PDF & Email