Hello, everyone, it’s Stephen Whiteside here from theuptrend.com. And welcome to Tuesday morning for our canadian subscribers. Welcome back. Hope you had a wonderful long weekend in the pre market this morning. Things are fairly quiet. We’re not expecting any economic numbers coming out this morning, and the market might actually be on pause waiting for Nvidia’s earnings to come out on Wednesday. From Tuesday’s trading action, the VIX closed slightly higher, but no major change for the VIX. Things would change on Tuesday. If the VIX were to close above 13.60. That would certainly be an indication that the market is going from being bullish to bearish. The market is still celebrating Dow 40,000, but that may be over soon. We did close below that level yesterday. So a bearish reversal day for the Dow up at our next price target here. And we got a new early warning signal on the panic zone chart. So this might be the short term top for the market. We’ll just have to wait and see if we get more downward pressure this week. Now, we’re certainly not on any new sell signals here for the major indices. There’s the Dow diamonds up at our next price target.
So you got to lock in some profits.
What worked on the Dow on Monday?
Well, Caterpillar was the big winner, followed by Microsoft and then Boeing.
What didn’t work on Monday?
JPMorgan was the big loser, generating a new daily sell signal as of yesterday’s close, down 4.5% on the day. Then looking at Johnson and Johnson, we pulled back into the channel yesterday. A close below $150.32 would give us a sell signal on Tuesday. And already on a sell signal, Cisco closed down near the bottom of the range yesterday. Huge move down yesterday. We did run up last Thursday and tag our next price target. So if you had an order in up there at $50, it got filled. Otherwise, we came down sharply yesterday. Now we’re looking to see if we can hold the 46 88 level. Then looking at the S&P 500, SPY hit our next price target yesterday. So congratulations, you got to lock in some profits. What worked on the S&P 500 yesterday? Well, the cruise lines were big winners, with Norwegian and Carnival both moving sharply higher on Monday. And then we had Moderna. Moderna was a big winner on several indices yesterday.
What didn’t work?
Big reversal for Chubb, closing below the previous day’s low. No joy for West Pharmaceuticals making a new low for this move, and no joy for the discount retailers. Both. Dollar Tree, which made a new low yesterday. And then we’ve got Dollar General back on a sell signal as of Monday’s close. Looking at the triple qs, we had several days to take money off the table here. So congratulations. You got to lock in some profits. New high for applied materials. And then we saw strength from Marvell and then KLA also making a new high for this move.
What didn’t work?
Well, we saw Doordash. Big down day yesterday. Still on a sell signal. No joy for Doordash. Lululemon made a new low for this move on Monday. And then looking at the Canadian market from Friday’s trading action, we’re trying to get to 34.38. That’s not working out very well. Now, we are trading slightly lower in the pre market this morning, according to Bloomberg’s futures. So we’re not starting off on the right foot on Tuesday morning for the canadian market on Tuesday, we’re looking for a close below $33.69 to give us a new sell signal for the iShares for the TSX 60. Couple of charts from Friday’s trading action. We’ve got Manulife making a new high on Friday. We’ve got it. Enbridge having an inside day, still on a sell signal. No change there. No change for Suncor, still on a buy signal. While Cenovus is still on a sell signal. Now TC Energy ran up, hit our next price target. So congratulations. You got to lock in profits up at that level. Moving on to the world of cryptocurrencies. Big update yesterday for bitcoin and Ethereum. So rumors about an Ethereum ETF. You can see we generated a buy signal at Friday’s close.
You came in on Monday, took that buy signal, you had a pretty good day then. Looking at a couple of the crypto stocks that were trading yesterday, we’ve got Coinbase back on a buy signal. Joining Marathon already on a buy signal. Joining Microstrategy already on a buy signal. So it looks like the market likes microstrategy the best at the moment. Let’s finish off looking at the major commodity ETF starting in the energy sector. We’ve got USO on a buy signal as of Friday’s close. Small pullback on Monday. And it looks like we’re going to have a small pullback at the open on Tuesday morning. Similar situation for Gasoline. Natural Gas, on the other hand, continued to move higher on Friday. Looking at the metals, we’ve got the GLD making a new closing high, hitting the 225 level. So congratulations, you got to lock in some profits there. If we can continue higher than 231.25 would be our next target. A new high for this move for Palladium on Monday and then unfortunately for Platinum we peaked on Friday and pulled back on Monday. And yes we closed below the previous day’s lows so that looks like a top for Palladium.
We’ll just have to wait and see. And then Silver made a new high for this move and did not hit 29.69 yesterday we got as high as 29.56. If we can take out 29.69 then 31.25 would be our next target to the upside. Okay folks, that is all I wanted to cover in this morning’s presentation. Have a great Tuesday. Next time you’ll hear my voice is on Wednesday morning.
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Stephen Whiteside
TheUpTrend.com
Tuesday, May 21, 2024
