In Wednesday’s premarket update, Stephen Whiteside from TheUpTrend.com expresses a cautious stance on the current state of the stock market. While there are buy signals appearing, overall market conditions remain unconvincing. Key economic events such as retail sales, crude oil inventories, and a speech from the Fed Chairman could inject volatility into the trading day. The NASDAQ is under pressure due to weakness in the chip sector, particularly Nvidia and AMD, both down over 6% in the premarket. Despite some strength in United Airlines and crude oil, major chip ETFs remain on sell signals.
Stephen notes that while Canadian indexes like the TSX 60 and tech stocks like Shopify and Constellation Software are showing strength, he’s hesitant about aggressive buying. Financial sectors in both the U.S. and Canada are on the verge of new buy signals, with banks like CIBC and TD already back on track. However, insurance stocks are pulling back. The VIX is technically back on a sell signal but trading higher in the premarket, adding further caution. Stephen advises easing into positions slowly rather than diving in fully, emphasizing that market conditions don’t yet warrant a full commitment.
Stephen Whiteside
Wednesday, April 16, 2025
