Canadian Stock Market Timing 20190911

Well, good morning, everyone and welcome to Wednesday morning. It's Stephen Whiteside here from with today's look at Canadian stock market trends. In the premarket this morning, stock index futures are higher on both sides of the border. Commodities are also up today with gold and crude oil trading higher in the premarket on Wednesday morning.


Let's just start off today's presentation with a very quick look at the US market. The VIX is still on a sell signal, that, of course, is supportive for higher stock prices. Now, one of the easiest ways to play the US market, of course, is to use the Horizon BetaPro ETFs, and looking at the major index ETF. So, starting with the 2x for the TSX 60 we do have a new early warning signal up there. We've had trouble getting above the 3984 level. So, you had the chance to take money off the table. We are trying to get up to 4063, but if you look back in June and July, you see that we had trouble getting up to that level, and then, of course, we did get up to that level way back in April of this year.


Looking down on Wednesday, we need to close for this ETF below 3893. Not expecting that to happen with the futures up in the premarket this morning, so that lower channel line is going to continue to move higher daily. Looking at the horizon BetaPro 2x for the S&P 500, no early warning signal just yet. We've had the chance to take money off the table at the 5938 level. If we can take out the recent high, then look for move up to 6094. That is certainly a reasonable target to the upside.


Looking down on Wednesday, and I'm not expecting this to happen, a close below 5717 would give us a sell signal and, of course, if that doesn't happen, that lower channel line is going to continue to move higher, and then there's the NASDAQ 100 ETF. The 2x for the NASDAQ had a little pull back there yesterday. We're trying to get to $75. That's our next target to the upside, and that's where we flared out back in July. Looking down on Wednesday, we need to close below 6972 to give us a sell signal. Not expecting that to happen on Wednesday.


Next up, let's walk through the Canadian market by sector, and we've got the banks and the financial services doing well right now. We've got energy stocks back a second week of a buy signal for energy stocks. Gold stocks continue to move lower on Tuesday. We've got the health care on a buy signal right now. We've got the wheat stocks on a buy signal, but fading very quickly. You can see we traded down towards the lower channel line yesterday, and on a Wednesday, we'll be looking for close below 1444 on the horizon BetaPro Marijuana ETF.


Then looking at global mining, we're on a sell signal right now, but global base metal stocks are on a buy signal, traded up, filled an open gap yesterday. Then looking at industrials, it's been pretty sloppy for the past few months. We're still on a buy signal here. No joy for the information technology sector, and that might have a lot to do with the sell signal in Shopify that happened three days ago. Then we're looking at real estate sitting right on the edge of a new daily sell signal.


Then we've got telecom stocks still on a buy signal trying to break out above the previous highs, having a hard time doing that. Then utilities, also, sitting right on the edge of a new daily sell signal.


Let's finish off today's presentation looking at the most active from Tuesday's trading action. Starting off with Suncor, still projecting higher prices here. Looking up in the $42 area. 4219 that's our next mathematical target if we could break out above 4063. On the downside, we need to close all the way down there at 3826. Not expecting that to happen. Of course, that lower channel line is going to move higher daily.


Next up, Encana. Encana, we're projecting higher prices here up into the 7.50 area, and you can see we're stuck at 6.25 at the moment. A lot of noise in here through the month of June above the 6.25 level. So, that's going to be a wall of resistance to get over to get us up to 7.03, which is our next target.


Yesterday was a bearish reversal day. Pros are still in control. A close on Wednesday below $5.81 would give us a new sell signal for Encana. Then we're looking at the Royal Bank of Canada. Royal Bank of Canada is still projecting higher prices here. 103.13 is our next target, and then 104.69. On the downside, a close below 9935 would give us a sell signal on Wednesday. Not expecting that to happen.


Then Canadian Natural Resources, still projecting higher prices here. Look towards $35.94 would be our mathematical target if we can break out above 34.38. I noticed we've been making a series of lower highs and lower lows. So, for the pattern to continue, we would want to get up to 35.94 in stock. Of course, if the pattern is going to change, which would be bullish for the stock, look for move up to 37.50.


Looking down on Wednesday, our lower channel line is way down there at 31.23. Not expecting to cross that on Wednesday. Then looking at the Whitecap Resources, ranked at 10 right now. Still projecting higher prices here. Having trouble moving away from 4.30 and, of course, we have the highs from June and July, and we're having trouble getting over that. If we can do that, then 4.69 and 5.08 start to come in to play. Our last charter the day, the lower channel line here is $3.81 and moving up and will continue to move higher daily.


Okay, folks. That is all for this morning's presentation. Futures are still higher, including gold and crude oil. A nice rotation in the Canadian market, money coming out of the gold sector, going into energy stocks, and that is certainly helping to keep the Canadian market stable at this time.

Stephen Whiteside

HXU.TO HBP TSX 60 Bull 2x

HSU.TO S&P 500 Bull 2x

HQU.TO NASDAQ-100 Bull 2x

.SPTTFS TSX Financial Services Index

.GSPTXDE TSX Diversified Banks Index

.SPTTEN TSX Energy Index

.SPTTGD TSX Gold Index

.GSPTTHC TSX Health Care Index

HMMJ.TO HBP Marijuana Life Sciences ETF

.GSPTTIN TSX Industrials Index

.SPTTTK TSX Information Technology Index

.GSPTXGM TSX Global Mining Index

.GSPTTRE TSX Real Estate Index

.GSPTTTS TSX Telecom Services Index

.GSPTTUT TSX Utilities Index

SU.TO Suncor Energy

ECA.TO Encana

RY.TO Royal Bank of Canada

CNQ.TO Canadian Natural Resources

WCP.TO Whitecap Resources




Canadian Stock Market Trends