Happy Friday, everyone. It’s Stephen Whiteside here from TheUpTrend.com In the pre-market this morning, things are fairly quiet. Stock index futures are mixed at the moment, so we may see a little selling at the open on Friday morning. Going into next week, I wouldn’t be surprised if we did see some profit taking and pullback. We are looking at the Dow here that had a huge up day on Thursday on the back of Salesforce, which was up over nine % on the day. That’s a huge move for a Dow 30 stock. The VIX for the S&P 500 is still on a sell signal. That’s supported for higher stock prices. The VIX for the Nasdaq is still on a sell signal. Notice we pulled up into the channel yesterday. A close above 17:41 would change things on Friday. And the VIX for the Russell 2000 also traded up to the upper channel line yesterday, looking for a close on Friday above 20.93. Buy signals in the VIX means that options traders are willing to pay more premium to buy options to hedge their positions. We know that they’re getting defensive if we see the premiums start to rise.
Now, in the Canadian market, bank stocks have come back sharply over the past couple of days. We’ve got the bank index back on a buy signal, joining the financials back on a buy signal on Wednesday. Looking at the Bank of Montreal, we’re back on a buy signal. We’re back on a buy signal for the bank in Nova Scotia. CIBC had a huge update yesterday, up over 5% on the day. Still waiting for the National Bank, the Royal Bank, back on a buy signal as of Thursday. Still waiting for the TD Bank, looking for a close on Friday above $83.69. Next up, let’s take a look at the Magnificent Eight Stocks. They’ve really led this market higher over the past month, and we can see the Nasdaq starting to pull back. Some of them have already generated sell signals, so wouldn’t be surprised if the market took a break next week and we saw a pullback. We traded down to the lower channel line yesterday for the triple queues looking for a close on Friday below 385.56. Then looking at Alphabet, you can see the early warning signal at the top of the Panic Zone charts. We ran up to 140.63 and have pulled back.
We are back on a cell signal as of Thursday’s close. You can also see that that open gap there has now been filled, so that is no longer in play. Then looking at Amazon, Amazon traded through several early warning signals. We’re still projecting higher here. We did not get to 150 and we’re starting to pull back into the channel. Close on Friday below 144.03 would give us a sell signal for Amazon. Looking at Apple, early warning signal at the top of the screen, we did not get to 193.75. We had a bearish reversal day a few days ago. Then we had a bullish reversal day yesterday. It was very weak, bullish reversal day. We did not close above the previous day’s high. We are bouncing off the lower channel line. A close below that line at 188.32 on Friday would give us a new cell signal for Apple. Looking at Meta, you can see the early warning signals at the top of the screen. 343.75 acted as resistance, and now we’re back on a cell signal as of Thursday’s close. Then looking at Microsoft, the best performer of this group, we’ve traded through several early warning signals up there.
We had a bearish reversal signal on Wednesday. On Thursday, we closed higher. That signal is still in play, but has not been confirmed just yet. We’ve had lots of opportunities to take money off the table. Anytime that you’re following a stock for any length of time, you always want to know not only the daily price targets, but the weekly price targets. That’s going to tell you where the major areas of support and resistance are. Looking at Microsoft on Friday, we’re still closing above the upper channel line. A close below 372.59 on Friday would give us a sell signal from Microsoft. Then looking at NVIDIA, early warning signals at the top of the screen, 500 still acting as resistance. Now we’ve moved down two lines and we’re back on a sell signal. We’ve been there for a couple of days now. Then looking at Shopify, and we’ll look at Shopify on both sides of the border, the stock has been very strong and traded through several early warning signals. Barish reversal day on Wednesday, fall through to the downside on Thursday. In New York, we’re looking for a close below 68.91. In Toronto, we hit $100 and stopped.
In Toronto, we’re looking for a close below 94.84. Last up, Tesla, the weakest of the group. You can see that we’ve really been stuck in the open gap for a while now, which, of course, is now closed. You can see a lot of trading activity within the gap here. We traded up to 250. We’ve started to pull back. If we can take 250 out, then 265.63 would be our next target. A bearish reversal signal on Wednesday fall through to the downside on Thursday, looking for a close on Friday below 231.70. Now, all of the lower channel line numbers that I quoted you are only for today. Of course, this lower channel line is going to continue to move lower daily if we do not close below it on Friday. Okay, folks, that is all for this morning’s presentation. Just wanted to give an update on those stocks, let you know some of them have already generated sell signals. So it wouldn’t be surprised if we see a pullback in the market next week. We’ve had a great November. Hopefully, you’ve had a chance to lock in some profits along the way. Have a great day.
Next time you’ll hear my voice is on Monday morning.
[00:00:00]: Pre-market analysis
[00:01:04]: Canadian market update
[00:02:12]: Tech stocks assessment
[00:03:20]: Microsoft performance
[00:04:29]: Shopify analysis
[00:05:31]: Closing remarks
Stephen Whiteside
TheUpTrend.com
Friday, December 1, 2023
