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Morning Market Outlook 06072024

Good morning, everyone, and welcome to Friday morning. It’s Stephen Whiteside here from In the pre market this morning, things are fairly quiet. We have a whole whack of employment numbers coming out on both sides of the border this morning. And of course, if those numbers are hot, that’s probably bad for the stock market. If they’re cold and employment numbers are falling, then that’s probably good for the stock market. So we’ll just have to wait and see. Now, in the pre market, we’ve got crude oil up slightly, while gold is down about $40 in the pre market. So there was some positive action in the gold sector yesterday. It’s probably going to unwind today. So I wouldn’t be overly excited to jump in on Friday morning. Let’s start off this morning looking at Nvidia. And Nvidia hit our next price target. So if you had an order in there at 1250, you got filled. Yesterday, we pulled back but did not close below the previous day’s low. So not overly concerned just yet. The Magz ETF made a new high yesterday and actually held the gain going into the close. Now, the XSD ETF hit our next price target of 250 over the past couple of days.

250 is an important target. Not only is it a daily target, but it’s a weekly target. So I know people have taken some money off the table at that level. Now, looking at the VIX, the VIX closed down just a nickel yesterday. Things would change on Friday with a close above 13.81. The Dow did trade up through the upper channel line yesterday, but did not close above it. So the Dow still on a sell signal. Small pullback for the SPY yesterday, down a penny on the day. The equal weighted spy still on a sell signal. No change there was down a little more than the spy yesterday, but no change in trend. Now, the triple Q’s were down $0.16 yesterday, so no big move there. While we had the Equal Weighted Nasdaq 100 down $0.08 on the day. So still no major change. Now, the next generation Nasdaq had an inside day, closed slightly lower. We saw the Russell 2000 pullback having an inside day, inside day for small caps and an inside day for micro caps. So no change in trend for the rest of the market. Now, just one sector. I’m watching closely.

The Regional Banks. They’ve been holding $47 for the last week. We’ll have to see if that continues, if they can build a base there or if that $47 level is going to break. Of course, if it breaks, we would imagine it would head back down and retest the April lows. But so far that has not started. Now, looking at the iShares for the TSX 60, they traded up to the upper trend line yesterday. We need to close on Friday above 33.58. With what’s happening in the gold sector this morning, I’m not sure that’s going to happen. Looking at the Energy sector, very quiet trading on Thursday, no change in trend. Looking at the Financials, an inside day on Thursday, small pullback, no change in trend. Gold stocks were up yesterday, end of the day on a buy signal. I’m not sure I would chase that on Friday. And then the price of Gold. If we look at the iShares gold bullion ETF, it also generated a buy signal on Thursday. Again, I think that’s going to unwind on Friday. Taking a look at the Base Metal ETF, it was up on the day, but no change in trend.

Now looking at the TSX most actives from Thursday’s trading action, not a lot of trend changes to talk about. We’ve got Suncor still on a sell signal, no change there. Manulife in the channel for the second day. For the third day, excuse me, looking for a close on Friday above $35.68 to give us a new buy signal. Would I chase that up here? No, absolutely not. But buy signal is a buy signal for some people and I would imagine if we get one it would just retest the recent high. Looking at Baytex, no joy there. Again, you know, this is a very bearish chart pattern. We recently put in a lower low after making a series of lower highs, so still a very bearish looking chart pattern. No joy for Cenovus, still on a sell signal here. We’ve got Enbridge trading in the channel, looking for a close on Friday, above 49.80. We closed at 49.48 yesterday. Then looking at Telus, it’s on a buy signal right now. It’s broken out above the 22.86 level, heading towards 23.44. Looking at Bitfarms, we pulled back after making a new high yesterday. Our next price target was 3.52. We hit a high of 3.53 yesterday.

So if you had an order in at 3.52, it got filled. Congratulations. Then looking at Hydro One, we’re on a buy signal right now. We are coming up towards the 41.41 level. You can see it presented a bunch of resistance back there in March, then in May we faded just below that level, so keep that in the back of your mind. TD Bank traded through the upper channel line yesterday, but did not close above it. We’re looking for a close on Friday above $76.66. Let’s finish off today’s presentation, taking a look at the most actives and unfortunately it’s a GameStop and AMC at the top of the most active list. And of course these stocks are being highly manipulated and they seem to be pulling back a little in the premarket last time I checked. But again, they’re extremely volatile and if you’re going to play these, you know, play it with risk money, don’t be betting the farm on either of these stocks. Now getting back to reality, Nio is back on a sell signal as of Thursday’s close. No joy for Tesla. Tesla still trading water here? That’s really hard to believe.

I wouldn’t have predicted that in a million years. Palantir. Palantir ran up and got pretty close to filling the open gap from early May. If it can do that and keep going, then dollar 25 is our next price target. No joy for marathon. Still treading water here has not taken out the recent high. Then looking at AMD, we’re still on a sell signal here from Tuesday. We traded up to the upper ten line yesterday, looking for a close on Friday above $168.41. Apple made a new high for this move on Wednesday. Small pullback on Thursday closed below the previous day’s low. So that could be the end of this run for Apple. On Friday we’re looking for a close below $190.95 to give us a sell signal for Apple. Robinhood continuing to move higher is broken out above resistance at 21.88. Our next target is $25 if it can pull away from the 21.88 level. Novavax hit a new high yesterday before reversing still well above the upper channel line. Things would change on Friday with a close below $15.24. Then looking at American Airlines, we’ve been trying to find support here around the 1150 level.

We’ve traded a little below that, but we could be building a base. We’ll just have to wait and see. Obviously no upward momentum or any sign of a trend change at this time. Now this is rather unusual to see a mining stock up near the top of the most active list, but Fortuna had been on quite a run which started at the start of March. We finally got a sell signal on Wednesday. You had lots of time to take money off the table along the way, so it should still be a very profitable trade. But yeah, it’s rather unusual to see a mining stock near the top of the most active list in the us market. Okay folks, that is all for this morning’s presentation. Waiting for those employment numbers to come out at 830. Have a great day, have a wonderful weekend, and next time you’ll hear my voice is on Monday morning.

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Stephen Whiteside
Friday, June 7, 2024

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