Stock Market Update 20191001

Good morning everyone and welcome to Tuesday morning. My name's Stephen Whiteside, publisher, and your host for US Stock Market Trends. In the pre-market this morning, stock index futures and commodities are slightly above fair value, so far it looks like we're going to see some buying at the open on Tuesday morning. Now Monday turned out to be an Inside Day or a day of indecision, a pause day, a holiday for the market. We don't want to spend too much time over analyzing what happened on Monday, we need to break out above Friday's highs or breakdown below Friday's lows to give us an indication which way we're heading next.


Let's just take a couple minutes this morning and we'll go through 30 charts very quickly. Let's just start off as we always do looking at the VIX or the fear index, it is still elevated. We are still on a buy signal here. Monday's trading action fit within Friday's trading range which was a wide ranged bar. There's an open gap just above Friday's high and that open gap is holding us in check at the moment. So we are looking for a breakdown or a breakout of Friday's high and that is also true for the Dow Diamonds, the SPDR ETF, the queues for the NASDAQ 100, the Russell 2000. The Zacks Micro Cap did break down and continued to make a lower low on Monday.


Going through the major sector ETFs, starting off with consumer discretionary, still on a sell signal, consumer staples still on a buy signal making a new high, energy stocks came down yesterday, we saw financial services trade in the channel and an inside day. Healthcare moved higher on Monday, still on a sell signal. There's home builders making a new high for this move on Monday, no change in trend. No change in trend for industrials an inside day, no change in trend for the materials. We still have the real estate sector on a buy signal, inside day Monday. Looking at retail stocks, they're still trading in the channel, no trend there.


Then we've got semiconductors still on a sell signal, inside day on Monday, inside day for technology stocks, inside day for transports. Our last sector SPDR ETF is the utility sector and it closed slightly higher on Monday, certainly no change in trend. Moving on to mining stocks, an inside day for coal mines, no change in trend there, no change in trend for copper mines. And then looking at gold and silver miners, both have the same chart pattern which is very negative and that is, we just put it in a lower high last week and now we're putting in lower lows this week.


Looking at the commodities themselves, there's the GLD breaking down below support. We've got palladium making a higher high on Monday and then silver making a lower low for this move. We'll finish off this morning's presentation. Looking at the energy sector, starting off with crude oil. Crude oil making a lower low for this move as did gasoline and natural gas, so not a very good sign for the energy sector going forward. We may get a possible area of support here as we've traded down into an open gap, but I doubt very much that that's going to hold on Tuesday.



Okay, folks, that is all for today's presentation. It's the first trading day of the month, and of course we're going to see some automatic money come into the market, not expecting traders to trade against that on Tuesday. Have a great day, and the next time you'll hear my voice is on Wednesday morning, and at that time we'll take a closer look at the Canadian Stock Market.

Stephen Whiteside

.VIX, VIX S&P 500
COPX, Copper Miners ETF
DIA, Dow Diamonds
GDX, MV Gold Miners
GLD, SPDR Gold Shares
IWC, iShares Russell Microcap Index
IWM, iShares Russell 2000
PALL, ETFS Palladium
QQQ, Nasdaq 100 ETF
SIL, Silver Miners
SLV, iShares Silver Trust
UGA, United States Gasoline
UNG, United States Natural Gas
USO, United States Oil
XHB, SPDR Homebuilders
XLB, SPDR Materials
XLE, SPDR Energy
XLF, SPDR Financial
XLI, SPDR Industrials
XLK, SPDR Technology
XLP, SPDR Consumer Staples
XLRE, SPDR Real Estate
XLU, SPDR Utility
XLV, SPDR Health Care
XLY, SPDR Consumer Discretionary
XRT, SPDR Retail
XSD, SPDR Semiconductor ETF
XTN, SPDR Transportation ETF



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