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Morning Market Outlook 06062024

Hello, everyone, and welcome to Thursday morning. It’s Stephen Whiteside here from In the pre market this morning. So far, things are fairly quiet. There’s a little tick up in the Nasdaq futures, but otherwise it’s pretty calm out there ahead of us. Jobless claims that come out at 8:30 this morning. It’s Nvidia once again leading the market higher. And it’s getting pretty close to the 1250 level in the pre market this morning. Now, just as a, you know, as a common courtesy, as a warning, this could be a buy the rumor sell the news type situation. That is always a possibility. And of course, the news is the stock is splitting tomorrow after hours. So just be aware of that, that there might be a lot of people deciding to sell after the split. Looking at the mag ZTF, it made a new high for this move yesterday. Well, a new all time high, excuse me. And we had Apple continue to move higher. Now. Apple is getting pretty close to it’s all time high, which is up there at 199.62. So we may actually hit that on Thursday. Amazon traded up into the channel yesterday.

A close above $182.07 would give us a buy signal on Friday. We’ve got Alphabet back on a buy signal as of Wednesday’s close. Nice big up move for meta yesterday. Finally some traction there. Next target is 500 and then back up to the previous high up there at 531.25. Then looking at Microsoft, it is back on a buy signal as of Wednesday’s close. Shopify, third day of a buy signal here. So I waved off the first one and thought that Shopify just walked into a buy signal. But we saw fall through to the upside and continue to move higher yesterday. If you’re trading shopify, then the bottom of that open gear app is your target at the moment. And then Tesla, nothing going on there. Still on a buy signal, but dipped through the lower channel line yesterday. So nobody’s interested in Tesla at this time. So what worked yesterday? Well, the big winner was the semiconductors and they put in a new high yesterday. The VIX is back on a sell signal, just barely. As of Wednesday’s close. The Dow traded up into the channel once again. So still waiting for a buy signal there.

Now we had a huge up move in the S&P 500 and the Nasdaq 100. And I’m going to take my loss, but I’m not going to go long at this time. I think that was rather overdone and we’ll probably pull back next week. The equal weighted S&P 500 still on a sell signal. No change there. Nasdaq 100, huge update yesterday, over 2%. And again, I’m just going to take my loss and stand aside for the time being. We actually have the equal weighted Nasdaq back on a buy signal as well, not the next generation. And then we’re still waiting for the Russell 2000. So the mid caps, small caps and micro caps are all still on sell signals. No change there. So once again, it’s a very concentrated move to the upside, but it is taking those indices up to new all time highs. Then we’re talking about interest rates. And the TLT continues to move higher yesterday. And the XBB continued to move higher yesterday as the bank of Canada pulled back interest rates. And we’re waiting for the Europeans to start doing the same thing. Now the TSX was up yesterday, not enough to give us a new buy signal.

Looking for a close on Thursday above $33.60. Now yesterday was one of those rare days in which everything worked and we had infotech back on a buy signal. And notice the huge discrepancy between what’s going on with canadian infotech and what’s going on with us. Infotech, of course, they have those big cap tech stocks that everybody has been following closely. We’ve got Shopify and of course Shopify is coming off a recent low, so no joy there. When we’re looking at Infotech, what worked yesterday in percentage terms? Well, Celestica was the big winner, so still waiting for a buy signal there. Dye & Durham’s back with a buy signal as of Wednesday’s close. And then we’ve got HUT 8. Those are the big winners in percentage terms from Wednesday’s trading action. Now, somebody asked me about the Clean Technology Index, which seems to have been on a tear for the last month. This is not an index I’ve spent any time looking at. I don’t know the components. The reason I haven’t been looking at it is if you look at a monthly chart of this index, you can see it peaked back in late to 2020 and has been in a decline ever since.

So I really don’t know anything about it. If there’s something to explore there, please let me know. Consumer Staples has been doing well and made a new high yesterday. Over the last month it’s been Primo. Water has been the big winner in percentage terms. Then looking at the industrials, it is back on a buy signal as of Wednesday’s close. The big winners in the industrials over the last month has been Bombardier and then GFL environmental has been up sharply over the past couple of days on rumors of a takeover, so that those are the two big winners for last month in the industrials. Then we have the real estate sector back on a buy signal as of Wednesday’s close. And of course, falling interest rates can help prop up the real estate sector. Then looking at telecom stocks. Third day of a buy signal here. We’re still waiting for Cogeco and Quebecor. Otherwise the other major companies are on buy signals at the moment. Okay, folks, that’s all for this morning’s presentation. I’m doing this ahead of those employment numbers coming out at 8:30 this morning. Have a great day. Next time you’ll hear my voice is on Friday morning, and at that time we’ll walk through the most actively traded stocks on both sides of the border.

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Stephen Whiteside
Thursday, June 6, 2024

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