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good morning Stephen White site here with today's edition of Canadian stock
market trends for Thursday February 6
2014 in the pre-market this morning coming up to 7:30 a.m. on the SCO stock
index futures and commodities are about fair value
Dow futures currently up about 70 points now we do have some European
interest-rate news coming out in just a few minutes and that could
dramatically affect the future use in the pre-market lets us turn off this
morning with a quick executive summary
there's a couple things we need to go down before the market can go up
and one of them is the Vikes for the S&P 500 in it
closed higher yesterday so new a sign of a breakdown there
we saw a little selling in the bond market came down to the upper channel
line if that continues
back to be supportive for higher stock prices we're also looking for the yen
to move lower named he closed the day higher
on Wednesday so no sign of a change their had speaking of currencies a
Canadian dollar has been in the channel for the last three days but has not been
able to close above
the upper channel line so if we can close above yesterday's high that would
give us a buy signal on Thursday
looking at the US market S&P 500 mean lower low and closed lower yesterday so
that's a bearish sign
at the first sign that something new is happening here is going to be a daily
close above Monday's high
monday was a huge down day and %uh so far we haven't been able to reclaim
much of those losses so we're looking at a trading range here between
1781 25 down to 1750
notice that we're a clustering around the 1750 level
if we are close below yesterday's low that certainly would be extremely
bearish
for the stock market going forward looking at the Canadian market starting
with the TSX we had an up day yesterday
I still haven't got to the lower chain line if we take out
this week's low you can see that we're finding support at the
a october/november highs at 13,000 for $37.50 level
if we take out this week's lows and I would expect that we're going down to
the 13,000 125 level
energy stocks traded back into the channel yesterday saw a little buying in
financial services
finding support at to 1875 if
we close below this week's low then we're looking for a move down to
to 1250 we've got a new early warning signal for the gold sector a close below
17 851 would give this a cell signal on Thursday
I we've got Baraka back on a cell signal as a Wednesday's close
I was so the industrial straight back into the channel yesterday as
did the info tech stocks we've also got materials in the channel
still sings a weakness in metals and mining we've got a little buying in
small-cap stocks yesterday
a little selling you know the telecom services sector yesterday but
that might change this morning with dole the
announcing earnings and last up the Venture Exchange
still holding the 940 level looking at a commodity futures and no change in
direction for copper
little mine yesterday in goals are holding in the channel
certainly traded above it yesterday and we can see little buying at the opening
called
on Thursday us Silver's back on E
buy signal but still no reason to get excited still looking for a breakout
have the range that we've been in since early December
are looking at to bring crude still on a cell signal North American
crude still on a buy signal no change there we saw gasoline trade back in the
channel yesterday heating oil treading water
and a big reversal day for natural gas we still need to see
a close below for 7592 give us a sell signal
on Thursday that's a move on and take a look at this summer the TSX most active
and
there's Encana as the volume leader up sharply two days in a row
b2gold continued to move higher while love bear
is now back on a cell signal as a Wednesday's close
we saw blackberry moving to the channel yesterday so close above yesterday's
high would give us a new buy signal
a party a close above the upper channel line on Wednesday so we're back on a buy
signal there
i no change in direction for Air Canada ed
advantage oil continue to move lower yesterday
I'm a new life no change there no change for
Agrium continue to move lower on Wednesday while Potash moved higher
traded up to the upper channel line so close about yesterday's high would give
us a buy signal on
Thursday looking at Rogers known can see where the telecom sector was down
sharply yesterday
as Rogers continues to move lower
let's %uh finish up this morning to you look at a couple 60-minute charts
starting with the Vikes with the S&P 500 will move above the flypaper channel
that spares for stocks
if we can start breaking down below seventeen that would certainly be
bullish for the stock market
I yesterday we spend most of our day in the channel so neutral
we started off with a buy signal which is negative for stocks then spent the
rest of the day treading water
an hourly close below nineteen 18 would certainly be the first sign that
something
bullish is happening for the stock market in given what we're seeing in the
future is this morning
I would expect to see that this morning now it also says expect to see a buy
signal for the S&P 500 cash index
a an early close above 17 $54.99 would give us a bicycle on Tuesday morning
lots overhead resistance you can see the flypaper channel coming down to
seventeen
eighty I you can also see there's a nice cluster their
potential resistance in if you are just fall
or across the screen here you can see previous support
which of course will now become resistance on the way back up
will give the TSX a little it's a brighter picture for the TSX
I still the same obstacles to get over where r we are at the bottom of the pan
exxon's with pressures on
for means of course you want to look up unfortunately there's a flypaper channel
there
there is moving averages you can see we're projecting up to the moving
average cluster here
were converging you've got the 200 100 our
moving average is converging and that's a potential area of resistance
and mathematically speaking look if we look two lines up that takes you up to
13,000 671 level
and that's a potential area resistance for the TSX
the TSX is coming into Thursday already on intraday buy signal
that would change if we started to see the TSX close below 13,000 504 level
on an hourly basis in I look at the hour's on the half-hour
so I'm looking at 10:30 11:30 12:30 1:30 2:30 3:30
okay folks that's all for Thursday morning and that's all for me for this
week
I'll be back on Monday to talk but the US market you know be back on Tuesday to
talk about the
Canadian market have a great day and will talk to you again soon
on T
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