Stock Market Update 20191003

Well. Good morning everyone and welcome to Thursday morning. My name is Stephen Whiteside from with today's look at North American stock market trends.


It's 9:00 AM on the East coast and stock index futures on both sides of the border are flat, so we are looking for a quiet open on Thursday morning at 9:30.


Let's go back a little bit in time and back on the 23rd we are talking about when and where to sell the S&P 500 Spider ETF and then the next day we saw the VIX spike and of course if the VIX is moving higher, we expect stocks to move lower. And we saw continuation to the downside on Wednesday in both the US and Canadian markets.


At the same time, markets were falling, the VIX was rising of course, and so the ETFs that follow the VIX were up yesterday. The TVIX was the second most actively traded ETF in the US. It traded up into an open gap. We're looking for a move up to 18.75 to lock in profits up there.


And the horizon beta pro, HUV ETF moved up nicely yesterday and hit our first target to the upside at 4.69. High yesterday was 4.71 so if you had an order in at 4.69, it should have been filled yesterday. Congratulations.


Let's move on and take a look at the most actively traded US stocks from Wednesday's trading action. First up is Ford and Ford's looking fairly weak right now as it's broken through the August lows. Then we've got Las Vegas Sands, which had generated a sell signal a couple of weeks ago, but is still trading in the channel so that stock is holding up fairly well. Then Bank of America, which generated a sell signal last week, saw fall through to the downside yesterday.


We gapped lower on the day and now we're coming up to an a gap that is still opened down here from the start of September, so that could potentially be a target in an area of support. If that doesn't hold, then look for a retest of the August lows.


Then we're looking at a General Electric and General Electric has been on a sell signal for a week now and remember we had trouble breaking through the 9.38 levels, spent a couple of weeks up there before coming back down. Now we're down two lines and two more lines to the downside from here takes us back down to 7.81.


Advanced Micro Devices, still on a sell signal from the start of the month. Then we're looking at Nektar and it is still on a sell signal, no change on Wednesday.


Apple drove down to the lower channel line once again, we're still on a buy signal here. We need a close on a Thursday below 218.78, and you had another chance to sell some Apple at 225 if you didn't get a chance the first time around, so congratulations for locking in some profits at the 225 level.


Let's finish off today's presentation with a walkthrough of the most actively traded Canadian stocks from Wednesday's trading action. Aurora Cannabis made a new low yesterday and then closed slightly higher on the day. The marijuana stocks came back on Wednesday. Certainly no chance of a change of trend on Thursday. Encana continued to move lower and then we've got three financial stocks in the top 10 list. Don't see that very often. There's the TD Bank with a huge move down yesterday. Manulife had a nice big move down as well and then a smaller move down for the Bank of Nova Scotia. All three generated sell signals on Tuesday, fall through to the downside on Wednesday.


First Quantum on a sell signal, no change there. Then we've got a B2Gold was up on the day, trading in the channel, a close above 4.55 would give us a buy signal on Thursday. Then we've got a Barrack, Barrack was higher yesterday. Barrick is still trading along the top of the Flypaper channel, so that is still a good sign. And then our final stock is Aphria and Aphria has broken down through the summer lows. It closed higher on the day yesterday after making a new low, unlike Barrick, which is trading above the Flypaper channel and using it as support. This stock and most of the marijuana stocks are trading below the Flypaper channel and using it as resistance. And so that's the difference between a bull market and a bear market.


Okay folks, that is all for today's presentation. Looking for a quieter open this morning, certainly no chance of a major trend change on Thursday from what we see so far. Have a great day. And the next time you'll hear my voice is on Sunday and at that time, we'll take a look at protecting your portfolio.


Stephen Whiteside

.VIX, VIX S&P 500
.GSPTSE, TSX Composite Index
HUV.TO, S&P 500 VIX Short-Term Futures ETF
F, Ford Motor
LVS, Las Vegas Sands
BAC, Bank of America
GE, General Electric
AMD, Advanced Micro Devices
NKTR, Nektar Therapeutics
AAPL, Apple
ACB.TO, Aurora Cannabis
ECA.TO, Encana
TD.TO, Toronto Dominion Bank
MFC.TO, Manulife Financial
BNS.TO, Bank of Nova Scotia
FM.TO, First Quantum Minerals
BTO.TO, B2Gold
ABX.TO, Barrick Gold
APHA.TO, Aphria