Good morning, everyone, and welcome to Wednesday morning. It’s Stephen Whiteside here from TheUpTrend.com. In the pre market this morning, things are fairly quiet. Of course, this is a jam packed news week, and yesterday it was all about PPI numbers, and the market reacted very positively off those numbers. And now this morning, we’re waiting for CPI numbers to come out at 8:30, and we’ll see how the market reacts.
Yesterday we saw the VIX closed below the lower channel line, generating a sell signal that’s supported for higher stock prices. The US dollar dollar index came down yesterday. Japanese yen was fairly quiet. It had an inside day. So the japanese yen is on pause at the moment.
It is still on a buy signal. And remember, that big run up in the japanese yen spooked the carry trade, which apparently put downward pressure on the stock market. But that seems to have dissipated over the past few days. Bond yields came down yesterday. It looks like the bond market is fairly stable at the moment.
Now, the SPY had a big pop yesterday, up over 1.5%. It has cut through some of our potential resistance areas. It’s also cut through the moving averages and is coming up to a downtrend line that could act as resistance. But so far, it’s looking pretty positive. Now, the Nasdaq 100 was up just under two and a half percent yesterday.
And so again, we’re in the situation where it’s mostly those big cap tech stocks leading the market higher. Now, typically, when you see the markets pop like they did yesterday, you would think that everybody was winning, but that wasn’t the case yesterday. Yesterday in the US market, we had 269 one month highs and 424 one month lows. And you can see that most of those were in the Nasdaq. And if we go down here to the 52 week highs, you can see that we only had 89 yesterday in the US markets, but 151 new 52 week lows.
And again, most of those were in the Nasdaq. So again, the market has split. It’s like going back to when you were a little kid in school. All the big kids wanted to play together and wouldn’t let the little kids play. Well, that’s exactly what happened yesterday.
So there’s the ishares for the TSX 60 popping yesterday, up just under 1% on the day. And the canadian market is looking a little more healthy right now. You can see there was more one month highs yesterday than one month lows. There was also more 52 week highs than 52 week lows. Unfortunately, that doesn’t work.
Its way to the venture exchange. At the moment it’s still looking fairly weak. But when we talk about 52 week highs, Alamos Gold made a new 52 week high. Cineplex made a new 52 week high. We had Fortis and we had Hydro One.
Just as some examples of stocks making new 52 week highs. Now back to the us market. Yeah, the Russell 2000 was up on the day. Small cap stocks and micro cap stocks were all up on the day, but no new trends there. Now we were watching the Dow 30 on the weekend and it has not generated a buy signal just yet.
We did have a couple of more stocks join the party and Apple was one of them. So Apple is going to show up in a couple of places. Goldman Sachs very weak buy signal there. Similar situation for JPMorgan. But those three stocks, those three Dow 30 stocks are back on buy signals as of Tuesday’s close.
Now looking at the magnificent eight, we’ve got the ETF back on a buy signal as of Tuesday’s close. Meta continues to move higher. New high for this particular move, we’ve got Nvidia back on a buy signal as of Tuesday days close. Shopify had an inside day. I hear people talking about next price targets plus the top of that open gap and that’d be interesting to see if we can continue to move higher.
Now, ark looking at the ARK ETF’s, two of them are back on buy signals, the ones that we thought the market loved, and that was fintech and the Internet. ETF are both back on buy signals. Now looking through the Canadian most actives. And these are by volume, dollar weight. And we’re starting off with Enbridge making new high, very small move for Canadian Natural Resources yesterday, closing just down two cent on the day.
A fairly quiet day for the Royal Bank. Looking for a close on Wednesday above $151.03. We’ve got Torbelline on a buy signal right now. We’ve got a new high for this move. For Suncor.
Then looking at Manulife, we’re waiting for a close above $35.11 on Wednesday to give us a buy signal. For the Bank of Montreal, it’s $114.45. And for the TD Bank, we’re looking for a close above $79.33. No joy for the Bank of Nova Scotia inside day yesterday and an inside day for Shopify. And again, we’re looking to see if we could move up to fill that open gap.
Looking at the US most actives from yesterday’s trading action, starting off with Nvidia, we talked about that. It’s back on a buy signal. Now. Starbucks stole the CEO from Chipotle and so one popped, one dropped. But those were wild moves and a lot of money changed hands yesterday.
Looking at intel, Intel moving up slightly yesterday. No joy there. No joy for Tesla. Still looking for a close on Wednesday above $211.17. Inside day for Palantir on Tuesday.
We saw a slight move higher yesterday for NU, then looking at Lumen. We dipped into the channel yesterday but came back and closed just above above it. No joy for Ford. Still looking for a close above $10.51 on Wednesday to give us a buy signal. New low for JetBlue yesterday.
Plug Power traded into the channel so a close above $2.26 would give us a buy signal on Wednesday. And there’s advanced microdevices generating a buy signal from Tuesday’s close. Then looking at Marathon. No joy there. A slightly higher close, but nothing going on.
And then last up, we’ve got Tencent Music making a new low for this move on Tuesday. Okay, folks, that is all for this morning’s presentation. I’m going to get this out ahead of the CPI numbers coming out at 8:30. Of course, if there’s a dramatic reversal in the market, you don’t have to take any of the buy signals generated from yesterday’s trading action. Otherwise, if the market is going to open flat or higher, you probably want to take those signals.
Enjoy the rest of your day. Next time you’ll hear my voice is on Thursday morning.
Stephen Whiteside
TheUpTrend.com
Wednesday, August 14, 2024
