Good morning, everyone, and welcome to Wednesday morning. It’s Stephen Whiteside here from theuptrend.com. in the premarket this morning, things are fairly quiet. We don’t have any big economic numbers coming out this morning. We do have new home sales and energy inventories coming out later in the morning.
So nothing to throw the market off. In the premarket, things are fairly quiet. We’ve got crude oil higher while gold is lower on Wednesday morning. Now, starting off looking at the VIX, the VIX crawled back into the channel yesterday. That is neutral, and that’s kind of what you’d expect going into month end.
We need to close on Wednesday above 13.40 to change the game. Now, FedEx is coming into today’s trading action already on a buy signal. And if you looked up your next two targets, 265. 63. Is that realistic? Yes, it is.
273.44. Is that realistic? Yes. We traded back there in April. So if you had orders in at those two targets, they’re probably going to get filled way up there.
And that’s where FedEx is currently trading this morning. So those orders are going to get filled at whatever FedEx opens at, at 930. So congratulations to anyone trading FedEx. Now, FedEx, of course, is part of the transportation sector, which had been looking pretty bearish over the last couple of months, making a series of lower highs and lower lows. That pattern may change on Wednesday with what we’re seeing FedEx do in the pre market.
Now, the Dow, which was up, what, five days in a row, pulled back yesterday and closed below the previous day’s low, which is bearish. Home Depot was the big loser, followed by DOW. And then we had Nike pull back into the channel, still on a buy signal and no change in trend for Boeing, still on a sell signal. Then looking at the S&P 500, that looks like an inside day yesterday. For the S&P 500, the equal weighted S&P 500 pulled back and traded down to the lower channel line.
So the overall market not looking as strong as the S&P 500. Now, we did see a little more strength in the technology sector. Yesterday we had the Nasdaq up over 1%. It was an inside day. But the equal weighted Nasdaq also closed higher, up about a third of a percent yesterday.
So a little more strength in the technology sector. Yesterday we had Nvidia trade higher. So that certainly helped. What didn’t work on Tuesday? Well, both homebuilders and real estate are both back on sell signals.
You’d think that would have something to do with interest rates. But bonds actually traded higher yesterday and bond yields came down. So it was not interest rates close, causing those two areas of the market to sell off yesterday. Now, looking at the Canadian market, we had a pullback, but an inside day for the TSX. Inside day for the TSX, 60 for mid caps and for small caps.
Micro caps put in a low yesterday, but actually recovered going into the end of the day. So microcaps actually won on Tuesday. Now, looking at commodities themselves, and that’s one of the reasons that the Canadian market pulled back yesterday, was we saw some weakness in crude oil. It didn’t close below the previous day’s low, so we’ll see if the inventories affect crude oil prices on Wednesday. Natural gas had an inside day yesterday, so no change in trend for natural gas.
Copper closed the day down a little over 1%, but not a new low. We had gold come down $13 and change. Gold may end the day on a sell signal on Wednesday, which would join silver, which ended Tuesday on a sell signal. So we did see some weakness in the commodity sectors and we can take a look at that now. Then moving on, we’ll take a look at the TSX most actives.
Now this is the same list we looked at the other day, so I didn’t update this list. We’re looking at Cenovus, still on a buy signal, no change there. We’ve still got TC Energy on a buy signal, no change. No change for Canadian Natural Resources. Small pullback yesterday, inside day.
Inside day for the TD Bank after generating a buy signal on Monday. And then an inside day for Suncor. No change there, no change in trend for powers. Inside day on Tuesday we had an inside day. So inside days are days of indecision.
They’re pause days. It doesn’t really matter if they closed higher or lower. The market really wasn’t expecting too much from the day. There’s First Quantum closing slightly higher yesterday. Inside day, inside day for Imperial.
When we look at Imperial Oil we can look up two lines and 96 88. Is that a realistic target? Yes, it is. Is $100 a realistic target? Yes it is, but we are currently stuck at 93.75.
Then looking at Enbridge. No joy there. Still on a sell signal. Then looking at Barrick. Barrick is still on a buy signal here, but has pulled back into the channel for the past couple of days.
A close below $22.35 would give us a sell signal on Wednesday. Shopify still on a buy signal inside day on Tuesday. A close below 86 95 on Wednesday would give us a sell signal. Nothing going on with weed right now. Canopy Growth is still on a sell signal.
Made a new low for this move on Tuesday and then HUT 8 made a new high for this move on Tuesday. So congratulations. Anyone trading HUT 8 now moving on to the US most actives and Nvidia actually traded higher yesterday. We need to close on Wednesday above 129.60 to give us a new buy signal. It is trading up a dollar or two in the pre market on Wednesday morning.
Sirius still on a buy signal here. We traded through the lower channel line yesterday but did not close below it. So we are looking for a close below 2.64 on Wednesday to give us a sell signal. No change for Apple, still on a buy signal. We see KKR trade through the lower channel line once again on Tuesday but not enough to give us a sell signal.
We need a close below $107.07 on Wednesday. Intel still treading water here. No change there. We’ve still got Bank of America on a buy signal. It pulled back yesterday.
A close blow 39.27 would give us a sell signal on Wednesday. No change for Amazon. No change for Palantir. Still on a buy signal here and then new high for at and t on Tuesday. No change in trend.
Nothing going on for Marathon. Still on a sell signal here. And then we’ve got Tesla still on a buy signal. Trading up to the 187.50 level yesterday, closing at 187.35. Now it’s actually trading up in the pre market this morning so we may actually get a close above 187.50 on Wednesday and then nothing going on with American Airlines.
We need to close above $11.48. Still on a sell signal and then Costco. Costco has traded down for the past couple of days in the channel. Looking for a close on Wednesday below $845.93 to give us a new daily sell signal for Costco. Okay folks, that’s all for this morning’s presentation.
So far. It looks like it’s going to be a fairly quiet open. Have a great day. Next time you’ll hear my voice is on Thursday morning.
Stephen Whiteside
TheUpTrend.com
Wednesday, June 26, 2024
