Good morning, everyone, and welcome to Wednesday morning. It’s Stephen Whiteside here from theuptrend.com. In the pre-market this morning, stock index futures are down across the board while commodities are trading higher on Wednesday morning. Now, there’s lots of premarket activity in some of the stocks we follow closely. We’ve been watching Crowdstrike recently, as has the rest of the market. It closed slightly higher yesterday after making a new low for this move. It is trading up another dollar or two in the pre-market this morning. So a downward pressure might be starting to subside, but that is still no reason to buy this stock. Now. It was the magnificent seven that rolled over last week and put downward pressure on the Nasdaq, and that is continuing to happen this morning with the Magnificent Seven and the Nasdaq 100 both trading lower. Now there are some stocks in the news this morning that we follow closely, including Tesla. Tesla is coming into Wednesday already on a daily sell signal that will continue today with Tesla currently trading down around 8% in the pre-market. We’ve got Nvidia on a sell signal that’s going to continue this morning.
It’s trading lower and Alphabet is also on a sell signal and a trading lower in the pre market. So not looking for any trend changes there. Now, the VIX is still on a buy signal and that is of course telling us that options traders are concerned about the direction of the market. But there are some pockets in the market doing incredibly well right now. So for the VIX to generate a sell signal on Wednesday, we’re looking for a close below 12.89 at the end of the day. Now, what worked on Tuesday? Well, it was, the Micro Caps were the big winners, followed by Regional Banking, US Banks, and then the Russell 2000. Now we’ve got to go farther down the list to look for some Canadian winners. But the big winner was Infotech, followed by the Gold sector. Now, gold stocks traded slightly higher yesterday. Gold was up. It’s on a sell signal right now. It is continuing to trade higher this morning. Not enough to give us a new buy signal, but probably enough to help some gold stocks on Wednesday. Now, unfortunately, energy stocks in the US and Canada rolled over yesterday as crude oil continued to move lower on Tuesday.
Now, semiconductors lost yesterday, but it was an inside day, so not that bad. And transports were also big losers yesterday. But again, it was an inside day. So you can see the losers were not that bad on the day. Now in the Transportation sector, it was ups was the big loser gapping sharply lower on Tuesday. We also, have the airlines still having trouble. Delta still on a sell signal here. No change. American Airlines generated a buy signal last week, but then the Delta thing happened and we’re back on a sell signal. So if American Airlines gives another buy signal, you know, I wouldn’t, I wouldn’t say no to that. And of course, our target would be the bottom of the open gap. Then looking at General Motors, a stock we don’t see very often, but it was down sharply yesterday. Back on a sell signal as of Tuesday’s close. Now, looking at the canadian market, the TSX had an inside day and it looks like the bank of Canada is probably going to lower interest rates on Wednesday. And so in anticipation of that, financials have been moving up over the past few weeks, and this could be a buy the rumors, sell, the news type situation.
We see the early warning signals at the top of the panic zones. We’re still on a buy signal here for the financial sector. That is also true for the banking sector. You can see the early warning signals at the top of the screen. We’re still on a buy signal here. We’ve been watching Royal Bank closely as it has been leading this sector higher. It is still on a buy signal here. That would change on Wednesday with a close below $150.88 at the same time one bank rolled over yesterday, and that was the Bank of Nova Scotia, which is now back on a sell signal as of Tuesday’s close. Okay, folks, that is all for this morning’s presentation. We are looking for some selling in the overall market on Wednesday morning. At the same time, commodities are trading higher. That could help some of the Canadian market on Wednesday. Have a great day. Next time you’ll hear my voice is on Thursday morning. And at that time, we’ll walk through the most actively traded stocks on both sides of the border.
Stephen Whiteside
TheUpTrend.com
Wednesday, July 24, 2024
