Good morning, everyone, and welcome to Friday morning. It’s Stephen Whiteside here from theuptrend.com. In the pre market this morning, stock index futures are trading right around fair value. Commodities are mixed with crude oil higher, while gold is down $12 in the premarket on Friday morning. Now, things are fairly quiet right now.
I’m doing this video ahead of the PPI numbers that are coming out at 8:30 this morning. Those numbers could certainly change the direction of the market. Now, we also have some major us banks reporting in the pre market this morning and we’ll take a look at those on Monday. Now, Thursday turned out to be a huge swing in the market and we saw money come out of the big cap tech stocks and go into the rest of the market, especially the most underperforming areas of the market on Thursday. We’ll take a look at that in a minute.
Starting off with the VIX, the VIX actually ended the day on a buy signal, but not that significant so far. And so that’s telling us that options traders are getting a little nervous. But, but when you see what the rest of the market looks like, you’re not going to be overly concerned. Now, we’ll start off looking at the Canadian market this morning, which hit a new high yesterday. We saw the TSX 60 trade up to those highs from May.
We saw a new high for mid caps, small caps had a nice big day yesterday trading up into that open gap. And then we had the venture exchange close higher on the day. Now in percentage terms, the big winner was real estate. But I think what had the most effect on the Canadian market was gold stocks moving up nearly 2.5% on the day. We saw financials up, trading back up to the recent highs from May.
Then we have energy stocks back on a buy signal as of Thursday’s close. So that also helped. Now, consumer staples has been the big winner of late, but it had a small pullback yesterday. We’ve run up to $1,000 and stopped on a dime. We’ll just have to wait and see if the market wants to continue higher here.
It had a small pullback yesterday and of course the first thing I look for is did we close below the previous day’s low? And that certainly did not happen. Now, one of the most widely followed stocks on our website is B2Gold. It was up over 5% on the day. Manulife traded up to the next price target of 37.50, got as high as 37.39 before pulling back.
We still closed higher on the day so there’s no major pullback here. We may be able to hit 37.50 on Friday. Then looking at Shopify, it is back on a sell signal on the TSX, but not in New York just yet. Moving on to the us market, and it was quite interesting yesterday, we saw a lot of money come out of those big cap tech stocks, but it didn’t leave the stock market. It went right back into the market, into underperforming areas, and we can see that very easily over the next few minutes.
We also had a lot of people take money out of the market yesterday, and we hit a lot of price targets yesterday. And congratulations to those people who had orders filled. Starting off with the Dow Diamonds, we hit our next price target before pulling back, still closing higher on the day. The SPY had a big reversal day. We were trying to get to 562.50, got as high as 562.33.
So there’s no reason why you shouldn’t have got your orders filled yesterday or the day before. Then looking at the equal weighted S&P 500, it was not down on the day. So if you take away the weightings of those big cap tech stocks, you can see money went into the rest of the market. We were up over 1% on the day. Then looking at the Nasdaq 100, big reversal day, down over 2%.
Looking for a close on Friday below $487.43. Now, we did hit $500, so, cha ching, you got to lock in some profits there. Now, semiconductors also had a reversal day yesterday, did not close below the previous day’s low, and we did hit our next price target of 265.63. So congratulations, calculations. And looking at the equal weighted Nasdaq, it was down on the day, but only 0.44%.
Still closing above the upper channel line. So no change there. Now we can see money came out of those big cap tech stocks and went into the next generation tech stocks. And you can see that ETF popped on the day. Then we had money go back into mid caps.
We saw the Russell 2000 gap higher. We saw small caps gap higher, and we had a big move up in micro caps on Thursday. So we haven’t seen that in a while. Let’s finish off this morning’s presentation. Looking at the Magnificent Eight.
And if we start off with the Magnificent Seven ETF, it had a huge pullback yesterday. Still on a buy signal here. That would change on Friday with a close below $47.02. We did not hit $50. I think we got as high as $49.94.
So you should have got an order filled in there. Congratulations. Then looking at the FANG Plus ETF, I know more people are playing this one. Down over 10% on the day. Looking for a close on Friday below 491.43.
And yeah, we did hit our next price target, so congratulations. And then we quickly came right back down sitting on just above the $500 level. Now looking at Apple, we closed below the previous day’s low, but still well above the upper channel line. Looking at Amazon, Amazon could not break through 200 and traded below the lower channel line, but did not close below it yesterday. So sitting right on the edge of a new sell signal for Amazon, we had Alphabet come back into the channel yesterday.
So a close below $185 $0.99 would give us a sell signal on Friday. For Meta, we’re looking for a close below $511.87 on Friday for Microsoft. Looking for a close below $454.26. Then looking at Nvidia, looking for a close below $125.18 on Friday for Shopify in New York. We’re looking for a close below $65.18 on Friday for Shopify in Toronto.
We are back on a sell signal as of Thursday’s close. And then Tesla. Tesla was the biggest loser of the day, down over 8%, trading down to the upper channel line. Looking for a close on Friday below $226.35. If you’re trading Tesla, you should just have a couple of shares left and all you’re doing is waiting to get kicked out at this point.
And that may or may not happen on Friday. Okay, folks, that is all for this morning’s presentation. Thursday was a wild day in the market, but at least the money did not leave the market. It went right back into the market. So there’s nothing wrong with the rotation in the market.
And of course, those big cap tech stocks have been hogging the headlines for a long time now, and it’s maybe time to let the rest of the market push higher. Have a great day. Next time you’ll hear my voice. If you’re a member, we’ll be on Sunday for non members. We’ll be back to talk to you again on Monday morning and we’ll take a look at those big cap us banks that are reporting this morning.
Enjoy the rest of your day, have a wonderful weekend and we’ll talk to you again soon.
Stephen Whiteside
TheUpTrend.com
Friday, July 12, 2024
