Good Morning, everyone. Welcome to Tuesday morning. It’s Stephen Whiteside here from theuptrend.com. In the premarket this morning, stock index futures are down across the board. DOW futures currently down 100 points. In percentage terms, the Nasdaq is the weakest of the bunch in the premarket on Tuesday morning. Just a heads up, I probably won’t be back on Wednesday. I’ve got a couple of appointments on Wednesday morning, including donating blood. The VIX closed a little lower yesterday, still sitting on the lower channel line. On Tuesday, we’re looking for a close below 16.88 to give us a sell signal. If that were to happen, that would be supportive for higher stock prices.
Now, if you were with us last week, the DOW may put in a bearish reversal day on Monday, put in a lower low during the week on Thursday, and then we had that nice big move up on Friday, which did not generate a buy signal. Yesterday was an inside day for the DAO. The S&P 500, still on a sell signal. We need to close on Tuesday above 413.03. Then the Nasdaq, which did not generate a sell signal last week, is still on a buy signal, making a new closing high yesterday. Not being helped by the chip sector, which is still trading and closing below the lower channel line.
Now, the ishares for the TSX 60 came back and closed just above the upper channel line yesterday. I would give that one a pass and wait for the next close above the lower channel to the upper channel line to get back in the TSX. We are up at resistance at 31.64. You can see that we tapped out back in January and February up at this level as well. So to get to 32.03, we need to take out last week’s high, and we’re probably not going to do that on Tuesday morning. If you want to give the TSX a little more room, then look at the mid term chart. Right now, we’re looking for a close below $31 to give us a new sell signal. Now, on the TSX, the big winner yesterday was Infotec, and the biggest loser was real estate. And InfoTech was BlackBerry that was the big leader yesterday. On Friday, we were looking for a move up to 6.25. We got that. So congratulations, you got to lock in some profits. Our next profit target is 6.64, which we hit on Monday and closed right at 6.65. So congratulations, you’ve got to lock in some profits along the way and still sitting looking for a move up to 7.03 as our next target. Now, the biggest loser yesterday was real estate and the biggest loser in that sector was Altus, which fell apart last week and is still holding the low from Friday. Now looking at the weekly chart and this chart is from Friday, you can see that we’re trying to hold 43.75. We’re trading just below that right now. The low from back last year was 41.27. T hat is our next target. And if that breaks, then we’ll eventually go down towards 37.50.
Looking at the US market, the biggest winner yesterday was Communication Services. Biggest looser was Real Estate. In Communication Services, you can see we traded up to the upper channel line, did not close above it. We’re still just a penny away from generating a buy signal on Tuesday. The biggest winner in communication services was Warner Brothers back on a buy signal after putting in a bullish reversal signal on Friday, as did a lot of market participants. Looking at what didn’t work yesterday, well, real estate has been treading water for a month or so here, trying to break out above 37.50. We’ve pushed above it several times, but have not broken away from it. If we can do that, then 3906 would be our next target to the downside. The biggest loser in real estate was Weld Tower, which was down on the day, but not enough to give us a sell signal. Still looking for a close below 76.27 on Tuesday. Let’s finish off with a look at those big cap tech stocks we’ve been following. And there’s Apple having an inside day on Monday, looking for a close below 166.87 on Tuesday to give us a sell signal. Of course, if that doesn’t happen on Tuesday, that lower channel line is going to continue to move higher daily. Amazon still on a sell signal here that would change on Tuesday with a close above 106.17. There’s Alphabet trading up, still on a buy signal here, not going anywhere. It’s been treading water for a while now. Looking for a close below 105.19 on Tuesday to give us a sell signal. If you want to give it a little more room, then on the mid term chart, we’re looking for a close below 102.50. Then looking up, we’re trying to get to 112.50. That’s our next target if we can take out the recent highs from the last month.
Then looking at Meta, we’ve dipped into the channel for the past couple of days, looking for a close below $228.14 on Tuesday. Then looking at Microsoft, we’re looking for a close below $298.72. Yesterday was an inside day. Then looking at NVIDIA, putting in a new closing high on Monday, looking for a close below 273.55 on Tuesday to give us a sell signal. And last up, looking at Tesla, second day of a buy signal here. We need a close below 161.20 to give us a sell signal on Tuesday. Our next mathematical target is 175, but just above that is the top of an open gap at 177.65, which could also act as a target.
Okay, folks, that is all for this morning’s presentation. And as I mentioned earlier, I’m probably not going to be back on Wednesday. I’ve got a few appointments. I’ve also got an appointment to donate blood on Wednesday. Enjoy the rest of your day. Next time you’ll hear my voice is probably on Thursday morning. in.
Stephen Whiteside
Tuesday, May 9, 2023
