Hello, everyone, and welcome to Thursday morning. It’s Stephen Whiteside here from theuptrend.com. In the pre market this morning, stock index futures are trading slightly below fair value. Commodities are also trading lower this morning. Now we do have a whole bunch of economic numbers coming out at 8:30 this morning. That could certainly change the direction of the market. We do have crude oil trading lower and gold trading lower. Now, gold was up $8.80 yesterday. It’s down $34 in the pre market. So we’re still on a sell signal here and that’s probably not going to help the Canadian market. The Bank of Canada cut rates yesterday. That didn’t help the TSX. That more than likely will generate a sell signal on Thursday. Now, we came into yesterday’s trading action with the VIX on a buy signal that was bearish for stocks. And we saw the VIX ETF’s. Whether you’re trading the VXX or the HUV, they went up nicely yesterday. Of course, the bear ETF’s also made a nice up move on Wednesday and we talked about these last week. So you’ve got the 2X ETF’s in Canada and the 3X bear ETF’s in the US.
And so we’re long those at the moment. So congratulations. That was a nice update yesterday. It looks like we’re going to continue to move higher on Thursday. Now. Crowdstrike still in the news. It had a new closing low on Wednesday, so nothing going on there. If you’re still short Crowdstrike, you know, just hold on to your remaining positions, but hopefully you’ve taken some money off the table and bought some shares back. Now, we came into yesterday’s trading action with the Magnificent Eight already on a sell signal. Two stocks were still holding up fairly well, Apple and Tesla. But Tesla rolled over yesterday and that caused the ETF to be down over 6%. Tesla ended the day down over 12%. So no change in trend there. Apple still holding up fairly well. It was down nearly 3% yesterday. Then we had Amazon making a new closing low for this move. New closing low for Alphabet. Then we had meta down on the day over 5%. We had Microsoft down three and a half percent and change making a new closing low. New closing low for Nvidia down over 6% on the day. And then Shopify was down over 5% on both sides of the border.
So when we look at Shopify back here, the 200 day moving average was acting as support. Now it’s acting as resistance. We’ve challenged it a couple of times we traded above it, but quickly came back. So now the question is, will we hold the May lows? That’s the next thing we’re looking for. Otherwise, move down to the $70 level would not be unexpected. Looking at the most active TSX stocks from yesterday’s trading action, the Royal Bank was at the top of the list, trading back in the channel. So a close on Thursday below $151.12 would give us a new sell signal. No change for the TD Bank. Still on a sell signal for Manulife. No change there. We’ve got Enbridge, still on a buy signal, no change. We had suncor trade into the channel for the past couple of days, so a close below $52.19 would give us a sell signal on Thursday. Then looking at Bitfarms. Bitfarms closed just a couple of pennies below the lower channel line. We’re back on a sell signal for bit farms, and bitcoin is down in the pre market this morning. CIBC made a new high for this move yesterday before pulling back and closing below the previous day’s low.
So that’s a bearish sign. New closing low for Air Canada on Wednesday. No change in trend there. Looking at Baytek, any lower close on Thursday would give us a sell signal for Baytek. New high for TC Energy on Wednesday. So no change in trend there. Moving over to the us market and we’ll skip the stocks that we’ve already covered. So Ford comes up next. And Ford is back on a sell signal as of Wednesday’s close. It is trading lower in the premarket this morning. We’ve got at and t back on a buy signal right now, and it’s not something I would chase up here at all. I wouldn’t have chased it the last time either. And then looking at Bausch. Bausch down sharply yesterday. This is a Canadian company trading on both sides of the border. Apparently there’s a report out it’s considering bankruptcy. That seems rather bizarre. The stock was doing very well. Nobody had any inkling that that was the case. But that’s the news story that came out yesterday. It is trading slightly lower again in New York this morning. Then intel still on a sell signal. No change there. Sirius, still on a buy signal, no change there.
Then we’ve got Advanced Micro Devices making a new closing low, coming down to test those may lows. And then we’ve got Palantir back on a sell signal as of Wednesday’s close. No change in trend for American Airlines. Still on a sell signal here. And last up, we’ve got Nio still on a sell signal. No change. Looking to see if it can hold the lows from late June. Okay folks, that is all for this morning’s presentation. So far, it looks like the market wants to do a little selling, but we do have a whole raft of economic numbers coming out later this morning before the market opens, and they could certainly throw the market into a different direction. Have a great day folks. Next time you’ll hear my voice is on Friday morning.
Stephen Whiteside
TheUpTrend.com
Thursday, July 25, 2024
