Tech Talk for Friday April 21st 2017

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Pre-opening Comments for Friday April 21st

U.S. equity index futures were higher this morning. S&P 500 futures were up 3 points in pre-opening trade.

First quarter reports continue to pour in. Reports released since yesterday’s close included Visa, E-Trade, Mattel, Honeywell, General Electric, Schlumberger, Stanley Black & Decker, SunTrust, Robert Half and Interpublic.

The Canadian Dollar was virtually unchanged following release of Canada’s March Consumer Price Index. Consensus was a month-over-month increase of 0.4% versus a gain of 0.2% in February. Actual was an increase of 0.2%. On a year-over-year basis, Canada’s March CPI increased 1.6% versus a gain of 1.8% in February.

Visa gained $2.10 to $93.25 after reporting higher than consensus first quarter results. Pacific Crest and RBC Capital raised their target price.

Sherwin Williams added $12.48 to $324.02 after reporting higher than consensus first quarter results. RBC Capital raise its target price to $380 from $350.

McKesson (MCK $137.66) is expected to open lower after Leerink lowered its target price to $140 from $155.

Mattel dropped $1.66 to $23.55 after reporting a larger than consensus quarterly loss. Monness lowered its target price to $29 from $34.

Costco added $1.59 to $171.74 after Barclays raised its rating to Overweight from Equal Weight.

McDonalds (MCD $133.64) and Wendy’s (WEN $13.92) are expected to open higher after BMO Capital initiated coverage with an Outperform rating.

EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2017/04/20/stock-market-outlook-for-april-21-2017/

Note seasonality charts on Initial Jobless Claims, Philly Fed Index, Natural Gas Storage and Natural Gas.

Observations

U.S. equity markets and economic sensitive sectors recorded a short term momentum spurt yesterday (i.e. moves above 20 day moving averages, recovering Stochastics, RSI, MACD from oversold levels). See Trader’s Corner below.

Other than Canadian forest product stocks, lumber stocks continue to move higher. WOOD moved above $58.33 to an all-time high prior to anticipation of tariffs charged against Canadian producers to be announced early next week. President Trump mentioned concerns about the softwood agreement during a press conference today suggesting that Canadian producers are taking unfair advantage of U.S. producers.

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StockTwits Released Yesterday

Earlier than average rise in gasoline inventories throwing some turmoil into the price of oil.

Technical action by S&P 500 stocks to Noon: Mixed. 15 stocks broke intermediate resistance. 10 stocks broke intermediate support.

Editor’s Note: After Noon, breakouts included VRSK, TROW, UNH, HOLX, AVY, NAVI, AMAT, PYPL, GPS and TDC. One breakdown: $SLB.

Home Builder SPDRs $XHB moved above $37.68 to a 20 month high extending an intermediate uptrend.

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Cdn. Pacific $CP.CA moved above $208.58 to a 20 month high extending an intermediate uptrend.

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Discovery Communications $DISCA, a NASDAQ 100 stock moved above $29.91 extending an intermediate uptrend

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eBay $EBAY, a NASDAQ 100 stock moved below $32.66 completing a double top pattern.

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QUALCOMM, $QCOM, a NASDAQ 100 stock moved below $51.88 extending an intermediate downtrend.

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Good news for coffee drinkers! The coffee ETN $JO broke $18.81 extending an intermediate downtrend.

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The Grain ETN $JJG moved below $27.21 extending an intermediate downtrend. Ditto for $WEAT!

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UnitedHealth Group $UNH, a Dow Jones Industrial stock moved above $172.14 to an all-time high extending an intermediate uptrend.

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General Electric $GE, a Dow Jones Industrial stock moved above $30.43 resuming an intermediate uptrend.

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U.S. Medical Devices iShares 4IHI moved above $152.60 to an all-time high extending an intermediate uptrend.

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‘Tis the season for strength in the Health Care Equipment Industry to the end of July! $IHI

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for April 20th 2017

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Commodities Trends for April 20th 2017

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Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts

Daily Seasonal/Technical Sector Trends for April 20th 2017

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Green: Increase from previous day

Red: Decrease from previous day

 

S&P 500 Momentum Barometer

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The Barometer jumped 9.60 to 57.20 yesterday. It has returned to an intermediate overbought level and continues to trend down.

 

TSX Momentum Barometer

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The Barometer added 0.65 to 56.90 yesterday. It remains intermediate overbought and trending down.

 

ETFInsights by Yves Rebetez

Yves offers an interesting column on the Bank of Canada’s policies entitled “Decidedly Neutral”. Following is a link:

http://www.etfinsight.ca/

 

Disclaimer: Seasonality and technical ratings offered in this report and www.equityclock.com 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

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8 Responses to “Tech Talk for Friday April 21st 2017”

  1. Kal Says:

    Anyone knows why CRH.TO is down over 12% today?

  2. dutchcanuck Says:

    Kal #1
    Cannot find any news either, but looking at the charts this happened twice before. Seems that when someone sells a large amount of stock the price craters. Non-judicious selling.
    All that said, this is another company with a rollup strategy with a now PE of 50, no div, and 20% from it’s high and a tremulous market environment.

  3. NRG Says:

    Kal #1

    Short report from fund manager. Fundamentals unchanged. Stock up 160% in one year. I own it. If it is down again on Monday I am going to buy more. Earnings report next week, and they have rarely met earnings. Still great story on expanding company. I have a friend who is up 1000% on this one on 100k investment. Yup that 1 mill. Long time ago, Jason Donville promoted this stock.

  4. DougP Says:

    NRG #3

    I owned CRH for a while, sold it and regretted it. On Jason Donville’s promotion, I also bought PHC, didn’t sell it, and regret that too. Now about 67% down. He did warn that this is more volatile than CRH, but its been all downhill. I was not smart enough to sell it long ago.

  5. Kal Says:

    Thanks dutchcanuck & NRG, I’m still up nicely on this one. Did buy it on Jason’s recommendation, even though he had some big losers. He had some big winners too. I’m still waiting for him to come back to BNN. Last time he was on, I think it was March of last year

  6. NeilAB Says:

    Re: Jason
    Like so many, it seems, he was one of my favs. Yup, some big winners and some big losers but I did like that he would admit that he just screwed up on a pick rather than blaming things beyond his control and the generally rogue roll he played.. His absence on BNN is kind of strange given his popularity. Could be any number of reasons – health, no need etc. However, interestingly, some guy, can’t remember who, was on BNN a month or two ago and called him by name a “pumper and dumper”. I didn’t think that a fair comment given that he often repeatedly would chose the same stock as a top pick (Constellation comes immediately to mind -Home Capital in its day etc.). However, I guess one does have to consider the possibility however remote of some connection.

  7. NeilAB Says:

    Re:CRH
    Yes, that was a pretty good hit today. As with other boarders, I was lucky enough to get in a long time ago. I did sell some a couple of months ago but still have a half position, so today hurt. In retrospect you could kind of see this short sell initiative coming. Huge gains on a ‘roll up’ stock of sorts, some recent insider selling, downgrades or lower targets from some analysts (Zack’s, BNS etc.), a checkered history of meeting earnings executions (with earnings due next week).
    However, the severity of the correction does seem overblown. 5I seem to suggest that given that nothing has fundamentally changed with the company as far as they can tell, long term, this may well provide a good buying opportunity.
    Unless there is something more to this story that we are not presently aware of, I would expect a bounce on Monday. The question then will be whether to sell or buy into the bounce. Isn’t this fun?

  8. Kal Says:

    NeilAB, I think I will hold onto this regardless of what it does next week. I bought on the US side CRHM for 12K and took out my initial investment last month and still up 38K US in profits. I’m down on PHMZF 77% like DougP. Out of 20 stock portfolio I’m down on three stocks PHMZF, GILD and ACQ.TO

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