Hello, everyone, and welcome to Wednesday morning. It’s Stephen Whiteside here from TheUpTrend.com. In the pre market this morning, stock index futures are currently trading above fair value. While commodities are flat. Target is out with earnings this morning, it is currently trading higher in the premarket. So congratulations to anyone who is long Target.
Now, we do have the FOMC minutes coming out later this afternoon. This morning, nothing in the pre market, but later in the morning we’re going to get employment number revisions, so that could certainly change the direction of the market. Now, the VIX is still on a sell signal, settled down quite a bit this week and looking for a close on Wednesday above 21 .28 to change things for the market. The Dow closed down slightly yesterday. We’re up at the top of the range right now and our next target is 410.16.
It’d be interesting to watch. We put in a high back here, then a lower high. We haven’t put in a lower high yet, but we’ll just have to wait and see. Currently, it looks like we are going to open higher on Wednesday morning. Now, looking at the SPY, we look at the spy, it is unleveraged.
And of course there’s a 2X, there’s a 3X, there’s a 4X for this. I don’t mention them every day. They generally are going to look basically the same. Of course the channel lines are going to be different and the price targets are going to be different, but they’re all generally going to move in the same direction. So I really don’t have to mention them every day.
If we’re long the spy, more than likely 99% chance we’re going to be long. The leveraged ETF’s as well. So, you know, I really don’t have to mention them every single day, but I am. They are certainly there in my mind and in my account. So there we are, hitting a price target for the 4X ETF.
If you’re long, that that was a place where you should be taking money off the table, at least 50% of your position. Looking at the Nasdaq 100, pretty quiet day yesterday. Still trying to get to 484.38. That is our next target to the upside for the Nasdaq 100. Looking at the Russell 2000, we filled the gap, pulled back what was previously resistance is now acting as support.
The 212 50 level and we’re still closing just above that. Then looking at the iShares for the TSX 60, you can see we made a new high on Monday, pulled back on Tuesday, that had a lot to do with the energy sector. 3516 is not only a daily target, but a weekly target. And of course, those weekly targets are much more important than the individual daily targets. Looking at the cryptos, we’ve got Bitcoin and Ethereum still on sell signals.
No change in trend there. Looking at commodities and starting off with crude oil, it was down yesterday. And of course, gasoline was already on a sell signal, making a new low for this move on Tuesday. And of course that is good for consumers. Looking at natural gas, we’re still on a buy signal here.
No change in trend. New high for gold on Tuesday. We’re still stuck to 231.25. We haven’t broken away from that just yet. If we can continue to move higher here, then 237.50 is our next target.
While gold is moving up, we’ve got the US dollar moving down. So if there’s a change in direction for the US dollar, I would assume there’s going to be a change in direction for the price of gold. Looking at palladium, no change there. Looking at platinum, still on a buy signal, and there’s a silver moving up. That gap has now been filled.
We filled the gap and pulled back, still closing higher on the day, so no major damage done there. Next up, let’s take a look at the TSX. Most actives from Tuesday’s trading action. And this list, of course, is heavily weighted in commodity related stocks. What’s unusual here is we’ve got a couple of insurance companies this week and that doesn’t happen very often.
Of course, we often see Manulife in the top ten list. Looking at Canadian ,atural Resources, we’re looking for a close below $47.37 on Tuesday to give us a sell signal. $50 is still acting as resistance. Then looking at Manulife, closing just above the upper channel line. No change in trend there.
No change in trend. For Enbridge, we’re looking for a close on Wednesday below $52.78. There’s a new high for Great West Life, up at the highs from back in May. Then we’ve got Suncor coming down to the lower channel line. So sitting right on the lower channel line, any lower close on Wednesday would give us a sell signal.
There’s a new high for Barrick yesterday, hitting our next price target and pulling back. So legally it is a bearish reversal day, but we actually continue to close higher on the day and we did not close below the previous day’s low. So, yeah, it’s a bearish reversal day, but very, very weak version of that signal. Then looking at Cenovus. We’ve got Cenovus back on a sell signal as of Tuesday’s close. Osisko Mining
Osisko Mining just treading water up here. It’s of course is being taken out. Then we’ve got Tamarack trading back into the channel yesterday, looking for a close on Wednesday below $3.91 410 still acting as resistance. Then we’ve got Baytex trading down to the lower channel line, looking for a close on Wednesday below $4.72. And then I just wanted to show Shopify.
Shopify has not filled the gap on the Canadian chart, but it has on the US chart and landed on a big round number, $75, and has been trading sideways for the past couple of days. So that might be all for Shopify at this time, but certainly nobody’s in a hurry to continue to buy or to start to sell at this time. Let’s finish off this morning’s presentation, looking at the US most actives from Tuesday’s trading action. Of course, this list is heavily weighted in technology stocks. We do have one bank, one credit services company, a couple of stocks not doing well.
Intel, NIO, and we’ve got Marathon all down at the bottom of the range. Starting off with Nvidia. Fairly quiet day yesterday. Inside day for Nvidia. For Intel, we’re looking for a close above $21.54 on Wednesday.
Not a stock I would go after. Advanced Micro Devices. Pulling back yesterday after making a new high. A new high for this move for Tesla. No change in trend there for Nio, we’re looking for a close on Wednesday below $3.82.
Then looking at Bank of America, we’re looking for a close below $38.46. No change in trend for Palantir. Then we’re looking at Sofi. Sofi pulling back slightly yesterday. Again, not a stock I would be interested in.
And looking at Warner Brothers Discovery new high for that stock for this move. No change in trend there for Marathon. We’re looking for a close on Wednesday above $17 to give us a buy signal. And of course that would be helped out if Bitcoin could get back on a buy signal. And then looking at Apple, and Apple still treading water up here, still on a buy signal.
Closing slightly higher on the day on Tuesday, but certainly that stock is still on a buy signal. Okay folks, that is all for Wednesday morning. So far it looks like we’re going to open higher on Wednesday. Commodities fairly quiet in the pre market, so waiting for some catalyst. Of course, we do have energy inventories coming out later this morning, and that could certainly disrupt the energy sector.
Enjoy the rest of your day. Next time you’ll hear my voice is on Thursday morning.
Stephen Whiteside
TheUpTrend.com
Wednesday, August 21, 2024
