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 are currently trading below fair value. Commodities are mixed with crude oil lower, while gold is up, but it’s just up by a dollar at the present time.
Now, we do have retail sales numbers coming out at 8:30 this morning. The retail sector is already on a sell signal, so not expecting a change in trend for the retail sector. But the numbers could certainly help move the rest of the market. Now the VIX is back on a buy signal, of course, which is bearish for stocks that would change on Wednesday with a close below 12.85. The Dow finally rolled over yesterday, is back on a sell signal.
Of course, it’s been dealing with Boeing pulling the Dow back over the past week or so. And Boeing gapped lower on Tuesday. So right down to the $200 level and looking to see if it can hold the $200 level. In the pre market this morning, I believe it’s trading below and you can see that there’s a nice little open gap over here that could potentially act as an area of support. We’ll just have to wait and see.
Certainly no reason to buy Boeing on Wednesday. Looking at the SPY and the triple Q’s, they’re both still on buy signals. That could change on Wednesday. Then looking at Apple. Apple has not been helpful for any of the major indices in the month of January.
At the same time, we’re still seeing money flow into Microsoft and Nvidia. What we’re not seeing money flow into? Well, Tesla, just like Apple, it has not helped the major indices in 2024. Then looking at the ishares for the Russell 2000 traded down to 190 yesterday. Looking to see if that can hold.
And then we’ve got the ishares for the Micro Cap Sector sitting right on 110. I think we’re probably going to make lower lows for both of those on Wednesday. And then the Financials ETF finally rolled over, joining banks and regional banks already on a sell signal. And then looking at semiconductors. The ETF traded higher yesterday.
It’s still on a sell signal, even though we saw higher prices for Nvidia and AMD, but the index itself still on a sell signal now while we’ve got the Nasdaq 100 still on a buy signal. ARK Innovations, the ETF made a new low for this move. So it really is a tale of two markets. There’s a bunch of big cap tech stocks holding this market up. Otherwise, much of the market is not doing well in the month of January.
Next up, let’s take a look at the Canadian market. And it is certainly hard to believe that the TSX and the TSX 60 are still on buy signals with many of the sectors already on sell signals, including financials and banks. And then of course, anything commodity related is not doing well right now. And unfortunately, the energy sector rolled over yesterday. It was down over 3% on the day back on a sell signal, joining gold stocks, the global mining index, we’ve got base metals, we’ve got materials.
All of those sectors are moved lower on Tuesday and are already on sell signals. What’s holding the canadian market up? Well, industrials are still on a buy signal, Infotech is still on a buy signal, and the telecom stocks are still on buy signals, making a new high for this move on Tuesday. Now, Telus is the dog of this particular sector at the moment. It did move higher on Tuesday, but when you compare it to BCE, for example, which is up at the previous highs trying to get to 56.25, Cogeco actually traded through 62.50 yesterday.
So if you had an order in there, congratulations, it got filled. And then we saw a new closing high for Quebecor and a new closing high for Rogers on Tuesday. And so those stocks are currently holding the canadian market up at the moment. Okay folks, that is all for this morning’s presentation. Looking for some selling this morning.
Have a great day. Next time you’ll hear my voice is on Thursday morning.
0:00 – Stock Market Opening
0:17 – Retail Sales Impact
0:31 – Volatility Index Analysis
0:37 – Dow Jones Update
0:49 – Boeing Stock Insights
1:14 – SPY ETF Overview
1:21 – Apple Stock News
1:33 – Microsoft Stock Performance
1:40 – Tesla Share Analysis
1:41 – IWM ETF Tracking
1:53 – Micro-Cap Stocks IWC
1:57 – Financial Sector XLF ETF
2:04 – Semiconductor Stocks SMH
2:22 – ARKK Innovation ETF
2:36 – Canadian Stock Market
3:56 – Stock Market Closing Thoughts
Stephen Whiteside
TheUpTrend.com
Wednesday, January 17, 2024
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