Canadian Stock Market Timing 20191009

Good morning everyone and welcome to Wednesday morning. My name is Steven Whiteside from with today's look at Canadian stock market trends. Well, we had an interesting session overnight. We started off with Asian stocks lower and now in the pre-market two hours before the market opens, we've got the Dow futures up a little over 200 points. That doesn't erase yesterday's losses, but it's certainly a good start. So let's take a quick look at the US market. The VIX moved up yesterday, closed near the high of the day, so people were rather spooked yesterday. Didn't take out last week's high, so we had no opportunity to sell additional VIX ETFs yesterday. Looking down on Wednesday, we need to close below 1654 to give us a new daily sell signal.


And then looking at the major US indices, of course we're not expecting a change in trend on Wednesday, even with what we're seeing in the pre-market this morning. There's the Dow, the S & P 500 the Wilshire Large Caps, Wilshire Mid Caps, Wilshire Small Caps, and then we've got the Zacks Micro Cap index, so certainly not expecting any buy signals on Wednesday.


Moving onto the Canadian market, the TSX has not seen panic selling yet. If we can hold last week's low, that would be a bullish sign. Otherwise, if we break last week's low, we're looking for a move down to retest the August lows. There's the TSX 60, there's mid caps and then unfortunately small caps on micro caps look like this, and that certainly tells us that the market is not having fun at the moment.


Looking at sectors, we have one trend change today. It's not banks, it's not financials. It's certainly not the energy sector, which unfortunately is breaking through last week's lows, but it is gold stocks. Gold stocks are back on a buy signal as of Tuesday's close. Then we've got a healthcare still on a sell signal, of course that would include the marijuana stocks. Industrials looking like they want to break through last week's lows. Then we've got info text, Alana sell signal, no change in trend for global mining. And then we've got real estate looking like it wants to punch it through last week's highs, and then we've got telecom, no change in trend there. And utilities up at recent highs, no change in trend for utilities.


Let's finish off this morning's presentation walking through the most actively traded stocks from Tuesday's trading action. We only have one winner in this list and that's Algonquin Power. We do have one trend change from yesterday's trading action. Otherwise this list is heavily weighted in the energy sector starting off with Encana, no change in trend there. Then we've got to Canadian Natural Resources breaking through last week's low. Then we've got a Suncor Energy breaking through last week's low, and then Cenovus Energy, forget about last week's low, we're starting to break through the summer lows for Cenovus Energy.


Then we're looking at the TD Bank, no change in trend there. No change in trend from Manulife Financial. We do have one change in trend and that's B2Gold, and just like the gold index, we're back on a buy signal as of Tuesday's close. Then Aurora Cannabis, no change in trend there. Last up, Algonquin Power trying to break out above Monday's high. Then we've got a Enbridge and looking for clothes above 46.74 on Wednesday to give us a buy signal for Enbridge.


Okay folks, that is all for this morning's presentation. Stock index, futures and commodities are above fair value this morning, so we are looking for some buying after you opened on Wednesday morning. That might not be enough to erase Tuesday's losses, but the market goes up, market goes down, and we'll just have to wait and see how things work out. Have a great day, and next time you'll hear my voice is on Thursday morning, and at that time we'll walk through the most actively traded North American stocks from Wednesday's trading action.


Stephen Whiteside


ECA.TO Encana
ACB.TO Aurora Cannabis
ENB.TO Enbridge
TD.TO Toronto Dominion Bank
CNQ.TO Canadian Natural Resources
MFC.TO Manulife Financial
SU.TO Suncor Energy
CVE.TO Cenovus Energ
.GSPTSE TSX Composite Index
.TSE60 TSX 60 Index
.SPTSEM TSX Midcap Index
.SPTSES TSX Smallcap Index
.SPCDNX TSX Venture Composite Index
.SPTTFS TSX Financial Services Index
.GSPTXDE TSX Diversified Banks Index
.SPTTEN TSX Energy Index
.SPTTGD TSX Gold Index
.GSPTTHC TSX Health Care Index
.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

Canadian Stock Market Timing