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Good morning everyone, and welcome to Thursday Morning. It’s Stephen Whiteside here from theuptrend.com in the pre market this morning, stock index futures are trading above fair value. Commodities are mixed with crude oil higher, while gold is lower on Thursday morning. Now, at the time of this video, we’re still waiting for economic numbers to come out at 830, and that could certainly add to the pre market volatility.
Now, as expected, fear has been falling this week. We are coming up to month end, which is today. We’re also coming up to a three day long weekend. Both of those usually give the market a bullish bias, so we’ve seen the VIX pulling back over the past couple of days. That’s bullish for the market.
We’ve seen the US dollar index pull back. That’s bullish for the market and we’ve seen bond yields pull back. That, of course, is bullish for the market. Looking at the TSX, we’ve traded up through an open gap. Now we’re coming up to resistance at 30.86 on the XIU.
If we can take that out, then it’s a run up to 31.25, which we failed at back in July. So just be aware of that. We are coming up to resistance then. Looking at the Dow Diamonds, we’re looking at 351.56. We should be able to hit that today.
Looking at the SPY, we’re coming up to 453.13 and notice that that is also the bottom of an open gap from back in July. So that could act as resistance then. For the queues, we are trading, currently trading above the 375 level in the pre market this morning, so looking to see if we can take a run back to the high from July. If we can take that out, then 390.63 would be our next mathematical target. The semiconductors are stalled here at 212.50.
We’ve seen money come back into Nvidia this week, running back up to the recent high. We haven’t seen a lot of money come back into Advanced Micro Devices just yet. So a lot of tech stocks have done well this week, including Apple, which has moved up to the bottom of an open gap. At the 187.50 level. We closed at 187.65.
So our next move up is 193.75, but there’s an open gap at 192.37. The top of that open gap is at 192.37. And so that is our next target to the upside for Apple. A lot of tech stocks not participating this week, but certainly not selling off either. Looking at Amazon, looking at Meta, looking at Microsoft, not really participating.
Looking at Shopify, we’ve had a nice move up over the past couple of days. Where have we moved to? 81.25. We closed at 81.21 yesterday with a high of 81.23. So just two cent away from our price target.
If we can take that out, then 87.50 comes into play. Let’s finish off this morning’s presentation, taking a look at commodities. And we’ve seen money move back into the energy sector this week. We’ve got crude oil back on a buy signal. Nothing going on with gasoline at the moment, but we do have natural gas back on a buy signal.
So with crude oil and natural gas moving up, we’ve seen a new high in Canadian energy stocks on Wednesday. And we’ve got US energy stocks back on a buy signal as of Wednesday’s. Close. Now, we saw a little reversal in the metals yesterday. The GLD made a new high.
It’s coming up to 181.25 and the bottom of an open gap from back in July. And so we saw a small reversal yesterday. Still closed higher on the day, unlike silver, which is trading up towards the highs from back in July. Had a reversal day yesterday, giving us a bearish reversal signal. So that could be the start of something.
We’ll look to see if we get fall through to the downside on Thursday. Then looking at the miners themselves, the GDX had a small pullback, small pullback for the XGD, actually closing higher on the day, excuse me, by two cent, but did pull back from a new high. And we had a big reversal for the SIL, closing down two cent after making a new high. And then looking at copper miners, a similar situation. Not a big thrust to the upside yesterday, but we did see a small pullback and we closed down a penny on the day, so nothing conclusive there.
Okay, folks, that is all for today’s presentation. Wouldn’t be surprised if the market traded higher today and tomorrow, but we’ll have to see how the market reacts to those economic numbers coming out at 830 this morning and then we have some more numbers on Friday. Enjoy the rest of your day. Next time you’ll hear my voice is on Friday morning.
Stephen Whiteside
Thursday, August 31, 2023
