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 and commodities are trading above fair value. So so far, it looks like the market wants to do some buying at the open on Wednesday morning. We don’t have any major economic numbers coming out this morning, just energy inventories coming out later in the morning.
Now, most stocks are trading higher in the pre market this morning. There is one that is not and that is Super Micro. It’s still on a sell signal, of course, was up slightly yesterday. It’s down in the premarket, trading down at the previous day’s low there. So our next mathematical target is 500.
If that low is taken out. Now, let’s split the presentation up this morning. We’ll start off looking at the us market, then we’ll look at the Canadian market, and we’ll finish off looking at the US most actives starting off looking at the VIX. The VIX came down hard yesterday. A close below 17.51 would give us a new sell signal on Wednesday and that would certainly turn US bullish on the stock market.
The VIX ETF’s pulled back yesterday, with the exception of the HUV in Toronto, which of course was playing catch up as the Canadian market was closed on Monday. Looking at the major us indices, a lot of gaps were filled yesterday. Looking at the Dow, the S&P 500, the Nasdaq 100, the Russell 2000, all those gaps have now been filled. Looking at the financials, that gap was filled as well and looks like we’re holding support at 40.63. If that breaks, you can see our next targets to the downside.
But 40.63 comes in line with the lows from late May and into June. Looking at what’s working while consumer staples and utilities are still holding up fairly well, semiconductors had a nice recovery yesterday, closing right below the previous day’s high. So not a great recovery yesterday, but we are trading higher in the premarket this morning. Now moving on to the Canadian market and we had quite a recovery off of the intraday low yesterday, but still closing lower on the day for the TSX, the TSX 60 for mid caps, small caps. Unfortunately, micro caps didn’t have much of a recovery yesterday.
Then looking into the energy sector, slightly lower close yesterday after making a new low for this move. Move financials had a nice recovery off the low as well. We’ve got gold stocks back on a sell signal as of yesterday’s close. New low yesterday for base metals and of course, copper prices have been moving lower over the past few weeks. Industrials made a new low for this move as well, a new low for infotech.
No change in trend there. Of course. What’s still working, while telecom stocks made a new high for this move yesterday and utilities are still on a buy signal, so no change there. Now, if you’re not familiar with our service, one of the things that we provide is price target charts for every symbol in the database. So in this example, there was our buy signal, so you would have bought at the open the next day.
And of course here are the price targets. And you can see where we suggest that you would be taking money off the table on the way up so that when you ultimately get kicked out of a symbol, you’re not holding the bag. You have a limited number of shares left and have locked in profits already. Next up, let’s take a look at the TSX most actives from Tuesday’s trading action. Now, the Canadian market had a strange day yesterday.
It was trying to play catch up to the us market, which was down sharply on Monday and then came back yesterday afternoon. So you’ll see a lot of charts where we made a new low yesterday and then recovered nicely going into the close. Enbridge was the most actively traded stock yesterday, trading right up to the top of our projected trading range. There’s a nice bounce off a new low for Suncor. Suncor actually closing up $0.04 on the day. Tourmaline made a new low yesterday.
We saw a new low for this move for the TD Bank, gapping lower. We had a new low yesterday for Manulife, but it clawed its way back and just closed slightly lower on the day. There’s the Royal Bank closing at the high of the day even though we traded lower throughout the day. Nice reversal there yesterday for the Bank of Nova Scotia holding the lows from early July. Then we’ve got to CIBC.
Big recovery off $67 yesterday. We’re back on a sell signal for Kinross. We’re back on a sell signal for Barrick. And we had a new low yesterday for Shopify. And Shopify broke $75 yesterday.
62.50 would be our next target to the downside if we keep going from here. And then BCE made a new high for this move on Tuesday and our next target to the upside is 48.44. High of the day was 48 39. If we take that out, then $50 would be our next target to the upside for BCE. Let’s finish off today’s presentation.
Taking a look at the US most actives and we’ll use the same list that we use yesterday morning. There were a couple of changes, but just for continuity, we’ll use the same list. Now, as we go through this list, you’ll see that the market still has a lot of work to do. A lot of ugly charts here, some inside days, some gaps being filled, but there’s just a couple of charts that actually look pretty good. Nvidia is one of them.
Up the 3.78% yesterday trading up to the lower channel line. No joy for intel, closing lower on the day. Apple closed lower on the day. Had an inside day. You’re going to see a few inside days.
Inside days, of course are days of indecision. We had Ford with an inside day, closing slightly higher on the day. No joy for Tesla, closing slightly higher, having an inside day. Then we’ve got Amazon closing slightly higher yesterday. Nice big update for Palantir.
Gapping higher on news. We’re looking for a close on Wednesday above $27.10 to give us a buy signal there. There’s Bank of America filling a gap, closing slightly higher. No joy for AMD inside day, closing lower on the day. Sofi inside day, closing lower on the day and then Alphabet inside day closing lower on the day.
That was also true for NIO inside day, closing lower on the day. And then look at that, we’ve got snap closing slightly lower on the day. Then at and t still on a buy signal. No change there. Looking at Plug Power.
Still on a sell signal here. Closing slightly lower. Then we had marathon going up but closing above the previous day’s high. That could be bullish going forward. Inside day for American Airlines, no joy there.
Then nu moving up to try to fill that gap but couldn’t do it but did close above the previous day’s high. Similar situation for CleanSpark. Closing right at the previous day’s high. Trying to fill that gap. And we also tried to fill the gap for Robinhood, closing higher on the day.
No joy for Broadcom, but looking pretty healthy here. Trading into the channel. And then last up Microsoft. Microsoft filling that open gap and closing higher on the day. Closing right around where it opened.
It opened at $400 and closed at $399.61. So the pro is really not coming in to take it higher at the close. Now, last up this morning, Shopify is out with earnings and I see that it’s trading up at the 63 $64 level. So way up here. If it holds that going into the close, that would certainly be a new buy signal for Shopify.
Okay, folks, that’s all for this morning’s presentation. I think the excitement that we’re seeing over the last couple of days will probably end on Wednesday, and then we should see the market start to pull back on Thursday and Friday. Of course, if the VIX comes down and generates a sell signal, I will need to turn from being bearish to bullish going forward. Have a great day. Next time you’ll hear my voice is on Thursday morning.
Stephen Whiteside
TheUpTrend.com
Wednesday, August 7, 2024
