Good morning, everyone, and welcome to Wednesday morning. It’s Stephen Whiteside here from theuptrend.com. In the pre-market this morning, things are fairly quiet. We don’t have any major economic numbers coming out this morning. On Thursday and Friday, we’ve got huge numbers, PPI, CPI numbers coming out, and they could certainly add some volatility to the market. Now, we’re getting some bullish signs here. We’re getting some bearish signs. The VIX continue to move lower. It is back on a sell signal as of Tuesday’s close. That’s bullish for the market. We’ve also got the Nasdaq VIX back on a sell signal as of Tuesday’s close, and we’re still waiting for the VIX for the Russell 2000 to generate a sell signal. So the VIX is pointing down, which is bullish for the stock market. Now, what isn’t working? Well, the US dollar index moved up yesterday. That’s not good for stocks. We also saw bond yields move up yesterday. The TLT had an inside day, was down on the day. The XBB had an inside day, was up slightly on the day. So no major change for currencies or bonds. We want the US dollar to go down.
We want bonds to go up. That’s not happening at the moment. The DAO had an inside day on Tuesday. Of course, an inside day is a day of indecision. The big winner on the DOW yesterday was Merck continuing to move higher. The big loser on the DOW yesterday was Verizon, still on a buy signal, no change in trend. Now, looking at the S&P 500, we closed down on the day and we’re trading a little lower in in the pre-market. We still closed above the upper channel line, so that’s a very mixed picture right now. Again, I wouldn’t get overly excited about the market at the moment. Juniper Networks was the big winner on the S&P 500 yesterday, up over 20%, and then the big loser was Hewlett-Packard Enterprise down sharply on the day, back on a sell signal as of Tuesday’s close. Looking at the Nasdaq, the Nasdaq moved up yesterday, closed above the upper channel line, so that’s a new buy signal for the triple Qs. The big winner on the Nasdaq 100 was CrowdStrike. The biggest loser was Moderna, having an inside day, so no change in trend there. Then looking at the iShares for the TSX-60, an inside day on Tuesday, closing down slightly on the day.
The big winner on the TSX-60 was Cameco, and the big loser was the TD Bank, back on a sell signal as of Tuesday’s close. What worked on the TSX composite, K92 Mining was the big winner. Up nearly 10% on the day. And the big loser, back on a sell signal, is Tillray, down nearly 10%. Now, the best performing sector in North America on Tuesday was actually Canadian Infotech, up a tick over 1%, and that had a lot to do with Shopify, which was up over 3% on the day. Okay, folks, that is all for this morning’s presentation. It’s a very mixed picture. The fact that the major indices are now all back on buy signals and the VIX back on a sell signal should make me very bullish. At the same time, the bond market, the currency market, isn’t really supporting a higher move at the moment. We’ll just have to wait and see how things work out. We’ve got big numbers coming out on Thursday and Friday, and they will certainly drive the market in a direction which we really don’t know what that direction is going to be right now. So don’t get overly aggressive this week.
It’s not the time and place to go crazy in the market, either being bullish or bearish. Enjoy the rest of your day. Next time you’ll hear my voice is on Thursday morning.
CHAPTERS:
0:00 – Pre-Market Analysis
0:20 – VIX Volatility Index
0:44 – USD Currency Trends
1:08 – DOW Jones Insights
1:24 – S&P 500 Overview
1:40 – S&P 500 Top Stocks
1:54 – Nasdaq Composite Update
2:10 – TSX Market Watch
2:38 – Top Sectors Today
2:52 – Market Summary
3:23 – Stock Market Timing Tips
Stephen Whiteside
TheUpTrend.com
Wednesday, January 10, 2024
