Hello, everyone, and welcome to Tuesday morning. It’s Stephen Whiteside here from theuptrend.com. In the pre market this morning, things are pretty positive. Stock index futures are up across the board. They’re certainly not up enough to make up for yesterday’s losses.
But, you know, the market’s doing a little bargain hunting on Tuesday morning. That’s certainly not going to change the overall direction of the market. Now, the VIX spiked yesterday and the VXX closed the day up just under 40%. So congratulations if you were long the VXX or any of the VIX ETF’s. Now, we came into yesterday short the market along the Bear ETF.
So there’s not a lot of trend changes from Monday’s trading action. A lot of support was broken. You know, if we were looking to see if the late May lows were going to hold for the S&P 500, well, that was broken yesterday. You’re also going to see a lot of new gaps in the market. And of course, those could potentially act as resistance on the way back up.
That’s also true for the Nasdaq 100 breaking through those late May lows. There’s the Russell 2000, small caps, micro caps all hit hard yesterday. It was unfortunate. You know, the market last time gave it some love as money came out of those big cap tech stocks. This time around, money is leaving the market and going into the bond market.
And that’s pretty obvious right now. Semiconductors made a new low, breaking down below the low from way back here. We often talk about the fact that the market rises slower than it falls. It falls, you know, it rises as an escalator, falls as an elevator. And that’s certainly what’s happening right now.
There’s the financial sector and, you know, we looked at the fact that there was putting in a double top up here. We certainly didn’t know it was going to come down as aggressively as it did over the past couple of days, but that’s just what happens. Unfortunately, the energy sector broke down yesterday. You know, we were looking for potential support at these lows and that didn’t hold. The Canadian market was closed yesterday.
And so we are going to expect selling across the board in the Canadian market on Tuesday. And it’s not just because of the US. Markets around the world were down over the past couple of days. So unfortunately, the Canadian market’s going to have to play catch up now. It’s going to be a little less dramatic than it could have been because the US futures are trading higher this morning.
So yeah, it’s going to have a little bit of a buffer there this morning. Looking at the Leveraged ETF’s, I know a lot of people had orders filled yesterday. So congratulations. Being long the bear ETF for the S&P 500, the Nasdaq, small caps semiconductors which were up but 4.66% yesterday at the end of the day, ran all the way up to $40 yesterday and reversed. Then we had the FANG ETF, which was up at the end of the day, just under twelve and a half percent.
We saw technology stocks up just under nine and a half percent at the close. Of course, more during the day. That’s why you want to have those orders in ahead of time, because, you know, just waiting for the close when you’re trying to take profits isn’t always going to get you the best price. Moving over to commodities, there wasn’t a good day for crude oil, was down on the day. Holding the lows from the late May, early June.
We’ve got new low for natural gas yesterday, new low for Copper. So if this is a global economic barometer, it’s not pointing in the right direction right now. Gold had a wild day yesterday, still on a buy signal, no change there. Unfortunately, Silver made a new low for this move and it’s a pretty bearish chart pattern. You had a high up here, lower high, you had lows.
Now we’re making lower lows. So now we are holding the low from back here in early May, but that may break over the next few days. Looking at the bond market and we don’t have to go through all of them, but you can see money has come out of the stock market, into the bond market over the past few days, and that has put downward pressure on bond yields. Previously this would have been bullish for the market, falling bond yields, putting downward pressure on interest rates. Typically that’s good for the stock market, but things have changed and you should never ask why.
It’s just what the market is doing and that’s what we have to deal with. We don’t have to deal with why something is happening, we just have to deal with the fact that it is happening now. There was not a lot of trend changes from Monday’s trading action. When we came into yesterday’s trading action, Nvidia was already on a sell signal. Now a lot of these big cap technology stocks clawed their way back from their intraday lows and we saw a couple actually close higher on the day.
There’s a new low for intel. No change in trend Apple is one of those stocks that clawed their way back, certainly didn’t close positive on the day and it’s still trading below the lower channel line and there’s an open gap to get filled there. But yeah, a lot of people did some shopping late in the day yesterday. There’s a new low for Ford. No change in trend there.
And then again, you know, there’s Tesla coming down to the 180 level and then coming right back to the $200 level. So nice $20 move off the low. There’s Amazon making a new low yesterday. And again, you know, recovering a lot of the losses going into the close. New low yesterday for Palantir.
Wow, all the way down. Hit our next price target at 21.88 and bounce. So if you were short palantir and you had an order, it got filled at 21.88. Congratulations. There’s a Bank of America making a new low for this move on Monday.
AMD closed higher on the day after making a new low. So some love for that stock. We need to close above $148.56 on Tuesday to give us a buy signal. If of course, if that doesn’t happen on Tuesday, then that upper trend line is going to continue to move lower daily. So far, making a new low for this move.
Again, recovering, going to the close. Sofi is a crappy stock to trade. I hate when people ask me about it. I would just tell you to totally ignore the stock and pretend it doesn’t exist. Then looking at Alphabet.
New low for Alphabet. Coming down to the 155 level. New low for NIO. Yesterday we saw a new low for snap AT&T. Still holding up.
Still on a buy signal. That would change on Tuesday with a close below $18.86. And last time we went from sell signal to a buy signal, I told people to just ignore it. It’s, you know, you don’t want to be buying something up at that level. Plug Power made a new low for this move but then closed higher on the day.
Looking for a close on Tuesday above $2.53 to give us a buy signal there. Then looking at Marathon. A lot of love came back into this stock. Going into the close, it was only down 1.4% by the end of the day, just down $0.24. So a lot of love for that stock.
And then American Airlines. A new low for American Airlines. No change in trend there. Now meta traded through the lower channel line but did not close below it. So it’s still on a buy signal.
You know, I didn’t want people to chase it up last week and still not interested in buying meta at this time. And then Shopify traded down and again recovered a lot of its losses going into the close yesterday. So new low for Shopify on Monday. But yeah, there was some love going into the end of the day for Shopify. Okay, folks, that is all for this morning’s presentation.
Congratulations. If you got some orders filled yesterday, no reason to go shopping for anything on Tuesday. You know, maybe the market wants to do a little shopping at the open today, but I’m not sure that’s going to be the start of anything new. We’ll just have to wait and see.
Stephen Whiteside
TheUpTrend.com
Tuesday, August 6, 2024
