Hello, everyone, and welcome to Wednesday morning. It’s Stephen Whiteside here from theuptrend.com. In the pre market this morning, things are fairly quiet. Stock index futures are currently trading slightly above fair value. Now, today could turn out to be an extremely volatile day. First of all, we’ve got the CPI numbers coming out at 8:30 this morning. And then, of course, we’ve got the Fed announcement coming out this afternoon. So it could end up being an extremely volatile day. Yesterday was fairly quiet. The VIX is still on a sell signal here, which is supportive for higher stock prices. It’s hard to be bullish right now because most of the market is not trading higher. So on Wednesday, we’re looking for a close above 13.58 to change things. Now, yesterday I was wrong. When we were looking at Apple in the pre market, it had a bad Monday. It was trading lower in the pre market on Tuesday morning, and we still hadn’t hit our previous high or the $200 level. Well, what do you know? Apple was the big winner yesterday, and it was up over 7%. And it ran right up to our next price target.
We traded through 200. If you had an order in there, it got filled. And if you had an order in at 206.25, it also got filled. So congratulations to anyone who got orders filled up there. You know, we always make decisions based on closing prices, not what’s going on in the pre market. And I always say, you know, in the pre market, it’s the kids. We wait for the adults to show up at 9:30 before we really care about what’s going on in the stock market. Now, that new high in Apple helped move the mags ETF up to a new high. And the Nasdaq 100, the Nasdaq 100 got within just a hair of hitting our next price target. 468.75 is our next target. We got as high as 468.14 on Tuesday, so we may be able to hit that today. Then, looking at the S&P 500, it also made a new close closing high on Tuesday. What didn’t make a new closing high was the equal weighted S&P 500. So Apple had quite an influence on the two major indices, but not the rest of the market, as the equal weighted S&P 500 closed down on the day, trading through the lower channel line once again.
So the equal weighted S&P 500 is not on a buy signal. Neither is the Russell 2000, making a new low for this move. Yesterday, we saw a new low for the small caps and a new low for us. Micro caps on Tuesday. So, yeah, the VIX is still on a sell signal and it’s a bit queasy, you know, trying to remain bullish at this particular time. Then looking at the canadian market, the ishares for the TSX 60 were down yesterday, so we’re getting down close to where we found previous support back in April, down at the 32.81 level. We’ll have to see if that holds. Now, there is a bit. Bit of a discrepancy between the TSX 60 and the rest of the market. The Vanguard Canada ETF, which is a broader based ETF than the TSX 60, holding up much better than the TSX 60 at the. At the present time. And when we look at what mid caps are doing, they’re holding up fairly well. Unfortunately, the micro cap stocks have been falling sharply over the past few days. So micro caps not holding up through this particular time in the market.
Looking at the TSX, most actives from Tuesday’s trading action, starting off with Canadian Natural Resources, we’re trying to hold the $48 level here. 46.88 is our next target to the downside. Then looking at Suncor, still on a sell signal. No change there. We are still on a sell signal for the TD Bank. The TD Bank generated a sell signal back at the start of May and has not had a buy signal since. Now the TD has tried to crawl its way back, but got stopped at 78.13, then got stopped at 76.56. Now we’re looking to see if $75 will hold again. If it doesn’t, then look for a retest of the recent low. Then looking at Telus. Second day of a sell signal, no change there. Manulife pulled back into the channel yesterday. A close below 35.23 would give us a sell signal on Wednesday. No change for Pembina. And then we’ve got Enbridge, still on a sell signal. No change there. We saw TC Energy pull back into the channel on Tuesday. A close below $52.84 would give us a new sell signal on Wednesday. And then we’ve got CIBC back on a sell signal as of Tuesday’s close.
Then in the news this morning, it appears that Canadian Western Bank is getting an offer from the National Bank and so that stock should pop dramatically Wednesday. You can certainly see that nobody had any indication that that news was coming. So congratulations to everybody for keeping that quiet. Of course, while Canadian Western Bank should trade higher, we should expect the National Bank to trade lower on Wednesday. Let’s finish off looking at the US most actives in Nvidia, the most actively traded stock on Tuesday and pulled back slightly on the day. Apple, of course, was the second most actively traded stock which we’ve already looked at at GameStop. Still on a buy signal. No change there. We’ve got neo making a new low for this move on Tuesday. No change. We do have Tesla back on a sell signal as of Tuesday’s close, so treaded water for a few weeks. Back on a sell signal. We still haven’t broken down below this low, so really looking for a breakdown of that low or a breakout of this high to tell us something new is happening for Tesla. Then looking at AMC looking for a close below $4.58 on Wednesday to give us a new sell signal.
Ford still on a buy signal pulling back in the channel. Things would change on Wednesday with a close below $11.91. Then no change for marathon. Still on a sell signal here. Making a new low for this move. Bank of America back on a sell signal as of Tuesday’s close. No joy for Advanced Micro Devices. Still on a sell signal. New low for Vale and closed slightly lower on the day after making that new low. Certainly no change in trend there and then. It’s odd to see a little Canadian company up at the top of the most active us list, but Bitfarms still on a buy signal here. We are looking for a close below $2.23 on Wednesday. It is trading slightly higher in the pre market this morning, so we may not see a change in trend on Wednesday. Okay folks, that is all for this morning’s presentation. CPI numbers coming out at 830. Then we’ve got the Fed news this afternoon, so it could turn out to be a very volatile day. Have a great day and next time you’ll hear my voice is on Thursday morning.
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Stephen Whiteside
TheUpTrend.com
Wednesday, June 12, 2024
