Pre-opening Comments for Tuesday March 5th
U.S. equity index futures are higher this morning. S&P 500 futures are up 7 points in pre-opening trade.
Bank of America/Merrill reduced its 2013 target price for gold by 6.9% to $1,680 per ounce.
BMO Capital downgraded Cliff Natural Resources from Outperform to Market Perform.
Yahoo added $0.35 to $23.05 after Cantor raised its rating from Hold to Buy.
Susquehanna lowered its target on TransOcean ($53.17) from $61 to $58.
Qualcomm added $1.41 to $68.04 after announcing a 40% increase in dividend and a $5 billion share buy-back program.
Qualcomm (NASDAQ:QCOM) – $68.04 gained 2.1% after announcing a 40% increase in dividend and a $5 billion share buy-back program. The stock has a positive technical profile. Intermediate trend is up. The stock is expected to break above $68.02 to an all-time high at the opening. The stock trades above its 20, 50 and 200 day moving averages. Strength relative to the S&P 500 Index is neutral. Short term momentum indicators are trending up. Seasonal influences in the month of March are positive. Preferred strategy is to accumulate the stock at current or lower prices.
Lots of sector rotation yesterday! Selected sectors and their related ETF broke to new highs. Consumer related indices and their related ETF moving to new highs included Consumer Discretionary SPDRs and Consumer Staple SPDRs
Other sector SPDRs also closed at new highs, Health Care SPDRs and Utilities SPDRs. However, their strength is not necessarily positive for long term strength for U.S. equity markets. Traditionally, Health Care and Utilities historically have been weak at this time of the year. This year, they are market leaders. Seasonal influences are not happening as usual this year.
Most economically sensitive sectors and their relative ETFs had a rough day after China signalled plans to slow down the economic, particularly in the real estate sector. Rotation continues
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Utilities Sector Seasonal Chart
Disclaimer: Comments and opinions offered in this report at www.timingthemarket.ca are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.
Don and Jon Vialoux are research analysts for Horizons Investment Management Inc. All of the views expressed herein are the personal views of the authors and are not necessarily the views of Horizons Investment Management Inc., although any of the recommendations found herein may be reflected in positions or transactions in the various client portfolios managed by Horizons Investment Management Inc
Horizons Seasonal Rotation ETF HAC March 4th 2013