Good morning, everyone, and welcome to Tuesday morning. It’s Stephen Whiteside here from theuptrend.com. In the pre market this morning, stock index futures and commodities are trading down. So, so far, it looks like we’re going to see some selling at the open on Tuesday morning. Well, Monday turned out to be a weird day for the market. Lots of stuff going on at the end of the day. The VIX had an inside day. A close below 12.63 would give us a new sell signal on Tuesday. From what we’re seeing in the premarket this morning, we’re not expecting that to happen. Now, one of the biggest stories from Monday’s trading action was the big sell off in crude oil, and that is continuing this morning. And that, of course, is putting downward pressure on energy stocks on both sides of the border. We have lots of new sell signals, short term sell signals in the energy sector coming into Tuesday’s trading action. Now, looking at the ishares for the TSX 60, they had a wild day yesterday. They traded right up to the upper channel line before reversing. We need to close on Tuesday above 33.68. Not expecting that to happen.
Both crude oil and gold are trading down in the premarket. What we’re seeing in the pre market on Bloomberg looking at the futures for the TSX 60, we are currently trading down at the recent low and so we might break that on Tuesday. Then, looking at the Dow, it traded above the previous day’s high for a couple of seconds and then came back down and we closed lower on the day. So no change in trend there. Now, the S&P 500 did close higher and traded up into the channel. Once again, we’re looking for a close on Tuesday above $528.64. We’re not seeing anything like that in the pre market. Similar situation for the QQQ’s. We’re looking for a close on Tuesday above $456.70. That would give us a new buy signal. It does not look like we’re going in that direction in the pre market. Looking at the Magnificent Eight, we saw the ETF move higher yesterday, not a new high, but did move up on the day. Still on a buy signal. We did have a new high yesterday for Apple. And Apple did hit our next target and settled just above it at the 193.75 level, looking for a move up to 200 if Apple wants to break away from this level.
We closed slightly above it, did not break away from it. So that hasn’t happened yet and it isn’t likely to happen on Tuesday. Taking a look at Amazon inside day.
No change there.
No change for Google or Alphabet. We’re still looking for a close above $177.07 on Tuesday to give us a buy signal. Meta traded higher yesterday. A close below 466 would give us a sell signal on Tuesday inside day for Microsoft. So no change there. Nvidia closing higher yesterday, not a new high, but closing higher on the day. And then Shopify walked into a buy signal on both sides of the border. I would sit on my hands. I wouldn’t run into this. Looking at what the pros are doing right now. They’re not really interested in the stock. So it is just a mathematical anomaly that we walked into a buy signal. Looking at Shopify on the TSX 81.25, we closed just above it but really did not break out above it. And then looking at the midterm chart, we’ve got a ways to go before we get a midterm buy signal. And you can see momentum down here. Nothing’s going on whatsoever, so no reason to buy. Shopify coming into Tuesday’s trading action. Sit on your hands, wait for additional closes above the upper channel line, but really do not walk into Shopify on Tuesday morning.
Looking at Tesla. Tesla still trading sideways here. Looking for a close on Tuesday below $174.03 to give us a new daily sell signal. Moving on to the most actives and once again, Gamestop at the top of the most active list. Of course this stock is being pumped and look at what happened yesterday. Oh, my goodness. We opened way up here and closed way down here. So that’s of course the public getting screwed at the open if they were buying. And then we came all the way back down. So, you know, there’s no low risk opportunity here. Yeah, it can continue to move higher, but oh, my goodness, you’re taking on a lot of risk and I wouldn’t do it. AMC end of the day, still on a sell signal.
No change there.
These are two dead companies that people are just manipulating. Really should not be a part of anyone’s investment portfolio. Looking at Advanced Micro Devices, we traded down to the lower channel line yesterday once again, but did not close below it. Looking for a close below $161.16 on Tuesday to give us a sell signal. We’ve got Ford back on a buy signal as of Monday’s close. You can wait for the next close above the upper chain line. No reason to run into that on Tuesday morning. Nio still on a buy signal.
No change there then.
No change for American Airlines, made a new low on Friday. With crude oil prices falling, that could help the airline stocks. But I have no idea if anybody’s interested in that story at this time. Looking at marathon, we’re on a sell signal right now. No joy there. Then next up, Carnival popped, and that’s another company that could benefit from lower crude oil prices. Then Dell dropped on Friday, continued to move lower on Monday.
No change there.
A new high yesterday for at and t before pulling back and closing slightly lower on the day. Taking a look at the TSX most actives, we’re going to see a lot of negativity in the energy sector here. And we’ve got Suncor back on a sell signal as of Monday’s close. No joy for Great West. We closed slightly higher on the day. Certainly no change in trend. Enbridge still trading in the channel. A close above $49.86 would give us a buy signal on Tuesday. Then a big drop for Baytex, back on a sell signal as of Monday’s close. Inside day for TC Energy. Things would change on Tuesday with a close above $52.64. Again, another energy stock rolling over, and that is Cenovus. Then we’re looking at Manulife. Still on a cell signal here.
No change there.
Then we had an inside day for CIBC. No change there. Barrick actually closed slightly above the upper channel line. You can sit on that for a day or two and wait and see if we get continued movement up. But otherwise I would not race into that buy signal on Tuesday morning. Athabasca, back on a sell signal as of Monday’s close. Looking at bit farms, a new closing high for this particular move for Bitfarms. Of course, that’s not a new high, it’s just a new high for this particular move. Things would change on Tuesday if we closed below $2.75. Not expecting that to happen. Then looking at Kinross. Kinross still on a buy signal here, things would change on Tuesday with a close below $10.82. And then just recap, the price of gold was up slightly yesterday. It is down in the pre market this morning. We need to close above $2399.30 to give us a buy signal on Tuesday. From what we’re seeing in the pre market this morning, not expecting that to happen. Okay, folks, that is all for this morning’s presentation. So far it looks like we’re going to see some selling at the open.
We don’t have any major economic numbers coming out today, so it’s really all about investors optimism or lack of it on Tuesday morning. Have a great day. Next time you’ll hear my voice is on Wednesday morning.
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Stephen Whiteside
TheUpTrend.com
Tuesday, June 4, 2024
