Good morning, everyone, and welcome to Wednesday morning. It’s Stephen Whiteside here from theuptrend.com. in the premarket this morning, everybody seems to be happy. Stock index futures and commodities are trading higher. Crude oil is up over $2.
So that is some global tension there in the crude oil market. We do have a lot of economic numbers coming out this morning, nothing that’s probably going to shift the market too much. Then we’ve got energy inventories later in the morning. And then of course, today is Fed day and so expect volatility to expand after 02:00 p.m. this afternoon we’re seeing a lot of money go into areas of the market that would benefit from a rate cut.
It could be a buy the rumor, sell the news type situation. So we’ll just have to wait and see. The Canadian central bank has cut a couple of times already and we’re waiting for the us market to catch up. And that may happen today in the pre market this morning, lots of buying going on. Advanced Micro Devices is doing well, but it’s not enough to give us a buy signal.
So currently we’re trading up in the channel and let’s see if that holds throughout the day. Now, the VIX is still on a buy signal. When the VIX is elevated, that means you should be looking for a lot of gaps in the market. And we’re certainly seeing that from Tuesday’s trading action. Things would change for the VIX on Wednesday if it were to close below 14.69.
Now, the chip sector was the big loser on Tuesday, and that is a new low for the chip sector. We also saw a new low for the Nasdaq 100. So both of those are trading higher. Looking at the queues in the pre market, we were down $6.37 yesterday. We were up $6 and change this morning.
So we’re not going to change the overall direction of the NASDAQ based on what’s happening in the pre market. But things could certainly change this afternoon. Now, PayPal was the big winner. That’s one of those gaps I was talking about. So PayPal, big winner on the Nasdaq 100 followed by Warner Brothers.
And then the big loser was Crowdstrike to making a new low for this move. We’ve also got Nvidia making a new low. It is trading higher in the pre market this morning. Qualcomm also making a new low on Tuesday. No change in trend there.
Now the Dow is still holding up. That was the travelers group, followed by Goldman Sachs and then JP Morgan led the Dow higher. Now, what didn’t work yesterday? Well, Merck was the big loser, down nearly 10% on the day we saw Procter and Gamble gapped lower, down nearly 5%. Intel making a new low for this move, trying to hold those lows from a couple of months ago. Then Microsoft. Microsoft was down on the day, down $3.81 is down $15 or so in the pre market. And it was lower than that right after the earnings came out last night.
So looking for a new low for Microsoft for this move. Now moving on to the S&P 500, still holding the recent low. Hormett Aerospace, a stock I’ve never looked at before, gapped higher. A big winner on the S&P 500 yesterday, followed by F5 Networks, followed by Stanley Black and Decker gapping higher as well. What didn’t work yesterday, Echolabs was down on the day nearly 8%.
We saw Corning down on the day nearly 7%. And a big reversal from the low of the day, but certainly no reason to buy corning on Wednesday. Looking at the iShares for the Russell 2000, it was an inside day on Tuesday. Still looking for a breakout above 225. Some of the interest sensitive areas of the market put in new highs yesterday, including homebuilders, real estate and insurance companies.
So with the VIX elevated, we saw a lot of gaps in the market on Tuesday. Now moving on to the Canadian market. The TSX is holding up fairly well without really the help of the commodity sectors, but it’s going to get some help from those today. We’ve got gold and crude oil trading higher in the premarket this morning. Now, what’s working?
Well, there’s Consumer Staples making a new closing high on Tuesday. New high for the Financials. We’ve got Income Trusts moving up yesterday. We’ve got the real estate sector holding up. It was up a penny on the day, still trading above 325.
We’ve had a nice run for Telecom stocks over the last few weeks. We’ve got the utility sector making a new high on Tuesday. All of that’s working well on the TSX 60. It was. Brookfield Asset Management was the big winner on the day, followed by the TD Bank.
We’ve got Hydro One, we’ve got Emira, and we’ve got Enbridge. All moving up. These are all interest rate sensitive stocks. There’s Intact. Insurance was the big winner in the insurance sector.
We’ve got Bank in Nova Scotia back on a buy signal as of Tuesday’s close, joining most of the other banks. And we’ve got one that we’ll take a look at in a minute. But there’s the Royal Bank making a new high on Tuesday. There’s the CIBC making a new high on Tuesday. Sun Life was up on the day.
Still on a buy signal. No change there. On the TSX composite, it was. Silo was the big winner. It was up nearly 9% on the day.
Already on a buy signal. No change in trend there. No change in trend for Secure Energy Services. It was up over 7% on the day. What didn’t work on Tuesday?
Well, it was the Bank of Montreal rolling over. It was down over five, or nearly five and a half percent on the day, trading right back to the lows from a couple of weeks ago. Okay, folks, that is all for this morning’s presentation. Should be a wild day. Not sure how many trend changes we’re going to see today, but we are going to see a lot of volatility this afternoon after 02:00 p.m.
you have a great day. Next time you’ll hear my voice is on Thursday morning.
Stephen Whiteside
TheUpTrend.com
Wednesday, July 31, 2024
