Good morning, everyone, and welcome to Friday morning. It’s Stephen Whiteside here from theuptrend.com. In the pre market this morning, stock index futures are currently trading below fair value. We’ve got commodities mixed with crude oil lower, while gold is higher once again on Friday morning. Well, it’s been a very impressive week.
The stock market has been able to trade through all of these economic numbers this week. This morning we do have housing starts coming out at 8:30, not the major number, but it is something the market is going to have to digest depending on what the numbers look like. Now, this week we saw the VIX come back. It’s back on a sell signal. The VIX for the Nasdaq is back on a sell signal.
And finally, the VIX for the Russell is back on a sell signal. So all the vixs are lining up and that is supportive for higher stock prices. The Dow gapped higher yesterday, and, of course, the Dow was the last one to move higher. We were concerned about it last weekend because we’re seeing positive moves in the, the other major indices. And the dow was holding back.
We looked at that on the weekend. I think there was six stocks that were actually on buy signals and the two more added at the close last Friday. So eight out of the 30 stocks were on daily buy signals coming into last weekend. That has certainly changed this week. There’s the S&P 500 continuing to move higher.
On Thursday last weekend, we were looking at the potential of the VIX having a reaction move and moving back up, probably filling an open gap, moving up a couple of price targets and then heading back down. And as you can see, we traded through that open gap and have moved up a couple of more price targets. And now we’re up at resistance. If we can continue to move higher, we’re getting pretty close to those previous highs. Now, looking at the percentage of stocks in the S&P 500 currently trading above their five day moving average, we are back up at the top of the range.
So wouldn’t be surprised if the market slow down here, which it is doing in the pre market this morning. Now looking at the S&P 500, equal weighted, it did participate this week as well. There’s the Nasdaq 100. There’s the Russell 2000 back on a buy signal. We’ve got small caps and micro caps now back on buy signals.
So the rest of the market chimed in coming into the end of the week. Now, looking at the Canadian market, there’s the iShares for the TSX 60 running back up to the previous high and resistance is at 35.16. The high yesterday was 35.12. If we can break out above that, then 35.94 comes into play for the ishares. For the TSX 60, there’s the financials gapping higher.
On Thursday we saw the energy sector gap higher and gold stocks are still on a buy signal. Right now, gold stocks are coming back up to resistance at 22.66. That’s where we’ve run out of steam previously. If we can take out the recent highs from July there, 23.44 would be our next target to the upside. Let’s finish off today’s presentation, taking a look at the most actively traded stocks, and we’ll start off looking at the TSX most actives from Thursday’s trading action.
We’ve got Enbridge breaking down into the channel yesterday, looking for a close below $52.50 on Friday to give us a new sell signal. Manulife second day of a buy signal for Manulife. It filled the gap and continued to move higher. Canadian Natural Resources fourth day of a buy signal making a new high for this move, breaking out above the previous highs. Then looking at Algonquin Power.
No joy there. Second day of a sell signal for Telus, then fourth day of a buy signal for Baytex. Second day of a buy signal for Cenovus. No change in trend there for Osisko Mining being taken out. Then the TD Bank.
Second day of a buy signal for the TD Bank and then Shopify looking like it’s going to run up and fill that open gap from back in May. And we’ve got capstone mining back on a buy signal. Let’s finish off taking a look at the US most actives from Thursday’s trading action. There’s Nvidia on its third day of a buy signal. We had a new high yesterday for Ambev.
We’ve got Tesla back on a buy signal as of Thursday’s close. No joy yet for intel. Big reversal for grab holdings. Then we saw pop yesterday for Amazon back on a buy signal. There’s one of the reasons that the Dow was up sharply yesterday.
That was Walmart. So Walmart totally freaking the market out. Everybody was on the wrong side of that trade. Then we’ve got Terawolf trading up to the upper channel line yesterday and then reversing. So we’re still looking for a close above $3.93 to give us a buy signal.
And then Cisco popped yesterday, another Dow 30 stock. That’s certainly a big contributor to why the Dow was up yesterday. Then we’ve got Apple. Third day of a buy signal there. New high yesterday for Palantir.
And then we had a new high yesterday for NU. It has been on a tear for the past few days. We’ve got Advanced Micro Devices still on a buy signal. No change there. Then AT&T closing just below the lower channel line, generating a new cell signal on Thursday.
And then we’ve got Ford looking for a close above $10.40. We closed at $10.46. So Ford back on a buy signal as of Thursday’s close. Okay, folks, that is all for this morning’s presentation. The futures are still below fair value, so we are going to see some selling at the open on Friday morning.
Now that’s not a big deal. It was a huge up week. The market is currently overbought on a short term basis. So to have it pull back a bit, not a big deal. The first sign something is really happening is if we close below the previous day’s low.
So if we end the day below Thursday’s low, I would be concerned that we just put in a top. But that’s not what’s happening at the moment. So in the pre market, seeing a little pullback, not a big deal after the big week we’ve had this week. Enjoy the rest of your day, have a wonderful weekend, and we’ll talk to you again soon. It.
Stephen Whiteside
TheUpTrend.com
Friday, August 16, 2024
