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Stock Market Timing Television – 04272023

Good Morning, everyone, and welcome to Thursday morning. It’s Stephen White side here from In the premarket this morning, stock index futures are above fair value across the board. DOW futures currently up 137 points. So far, it looks like we’re going to see some buying at the open on Thursday morning. Now, I won’t be in on Friday, but I will be back on the weekend. Now, we are coming up to month end and month end usually has a bullish bias to it. That doesn’t stop the market from falling, but it usually cushions the market if it wants to go down. Why do markets tend to go up at the end of the month? Well, automatic money is going to come into the market and traders don’t usually like to trade against that automatic money that usually goes into mutual funds and ETFs. Now, yesterday morning, this time we knew Microsoft was going to spike at the open and that our next price target to the upside if we took out the previous highs, was 296.88. And that’s just where we landed and closed just below that level yesterday. I didn’t get over $300. The high of the day was $299.57. Now, we were already up at the top of the Panic Zone.

So when you see a new pop like this up at these levels, it’s not something I would want to chase unless, of course, I short the stock and then I want to cover my short position. But I don’t necessarily want to go long up at these levels. Now looking at Meta, Meta is also going to pop this morning. We know that it’s currently trading up at the 234 level. You can see the differences between the price target lines here. So you know that the next price target is 237.50. So we’re up just below that level this morning. Again, we’re starting at the top of the panic zones already, and this isn’t something I would want to chase if I was not already long meta at this time. Now, looking at the Russell 2000, it continued to move lower, so the rest of the market is going in one direction. There’s a handful of big cap stocks going in the other direction. Now, Canadian small cap and microcap stocks had a nice run for a couple of weeks, and that, of course, had a lot to do with interest in the mining sector. Now, as we come into the end of April, we should go back and take a look at what we were looking at back at the start of April.

On April fifth, I posted a video titled We Hit a Wall, and we were looking at areas of the market that had run up to resistance and stopped. One of the biggest ones, of course, was the Nasdaq 100 and the Nasdaq, both not able to break out above resistance during the month of April. Now we’re starting to pull back down, even though we’ve got some of these big cap tech stocks popping at the moment. Now we’re also looking at the Russell 2000 that ran up to 1812.50 and was unable to break out above that level through the month of April, and now we’ve broken down below support. That is also true of the DOW transports. Now the DOW Transports did trade above the early April highs, but they never really broke away from resistance. Now, we’ve broken down and we’ve broken down below the March lows. So that’s not a good sign. Now, some areas of the market that did break out above resistance and that was the DOW, but the DOW has also come back down and is trading below those April lows. And the TSX 60, which had a lot of help from the gold sector, ran up two lines above resistance.

So at the start of the month, we were looking at 12, 1875 as a resistance, and then we broke out above that, moved up two lines to 1250 back up to the highs from the start of the year. Now, if we can take out the 1250 level, then the 1265.53 level and the 1281.25 level will come into play, but only if we can break out above the 1250 level. Let’s move on to the most actively traded stocks from yesterday’s trading action, starting off with First Republic. If you were with us yesterday morning, I mentioned the stock would probably be down another 30 % and ended the day down another 29.75 %. Tesla continued to move lower. It’s broken down below the top of the open gap heading towards 150 and then the bottom of that open gap. If we take out the bottom of that gap, then 125 would be our next mathematical target. But also notice there’s a gap just under that level as well. So that could certainly be a target to the downside if we keep going from here. Amazon’s still on a buy signal, still long. Amazon, no change there.

Microsoft, we talked about earlier. Then we’ve got Marathon Digital trading up to the upper channel line, but then retreating, going into the close, closing just below the lower channel line. No joy for NIO, didn’t take out the previous day’s low. That might be the start of something. Then we’ve got Alphabet traded up to the upper channel line but did not close above it. Looking for a close above 106.42. Then we’re looking at Ford, Ford trying to hold 1150. Then looking at Activision, which had the big drop yesterday. Now, this would be a losing trade if you had have bought here when we had the last buy signal, if you had have held on and not taken any profits, you would be looking at a losing trade. Of course, what I try to teach people is to take profits along the way. If you had an order in here at $ 81.25, it would have got filled at the open up here. And so you would have been able to lock in some nice profits up at those levels. And the fact that it dropped a lot yesterday, if you hadn’t been following what I teach, you would have only had a partial position left and so you still would have made money on the trade.

Advanced Micro Devices, no joy there. Still on a sell signal, a close above $90.85 on Thursday would give us a buy signal. Let’s finish off today’s presentation taking a look at the TSX most active. Starting off with Cenovus, big down day for Cenovus. Then we’ve got the Royal Bank, still on a buy signal. It traded through the lower channel line for the last two days but did not close below it. So we’re looking for a close on Thursday below 131.50 for 4. Then we’ve got a new low for Suncor. We’ve got Manulife still trading in the channel here for the last two days. A close below 2572 would give us a sell signal on Thursday. Second day of a sell signal for Athabasca Oil. Then we’ve got Sandstorm Gold still on a sell signal here that would change on Thursday with a close above $8.04. Then we’re looking at TC Energy still on a sell signal, no change there. No change there, no change for HUT 8. Looking for a close on Thursday above $2.56 to give us a buy signal. Then Enbridge, still on a buy signal that would change on Thursday with a close below 53.03.

Then we’re looking at the TD Bank, which was actually up two cents yesterday. Td Bank would be back on a buy signal with a close above 82.64. Okay, folks, that is all for this morning’s presentation. So far, it looks like we’re going to see some buying at the open on Thursday morning. Have a great day. Next time you’ll hear my voice is on Sunday.

Stephen Whiteside