Tech Talk for Tuesday August 1st 2017

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Tech Talk for Tuesday August 1st 2017

Pre-opening Comments for Tuesday August 1st

U.S. equity index futures were higher this morning. S&P 500 futures were up 5 points in pre-opening trade.

Index futures were virtually unchanged following release of economic news at 8:30 AM EDT. Consensus for June Personal Income was an increase of 0.3% versus a gain of 0.4% in May. Actual was unchanged. Consensus for June Personal Spending was an increase of 0.1% versus a gain of 0.1% in May. Actual was an increase of 0.1%.

The Shanghai Composite Index added another 19 points to 3,292 on news that Caixin China PMI reached a higher than expected 51.1.

Second quarter reports continue to pour in. Companies that reported this morning included. Air Canada, Archer Daniel Midland, BP, Lumber Liquidators, Mosaic, Pfizer, Pitney Bowes, Royal Caribbean, Sony, Sprint, Under Armour, WestJet and Xerox..

American Airlines gained $0.91 to $51.35 after JP Morgan raised its target price to $61 from $52.

Pfizer slipped $0.06 to $33.10 after reporting slightly better than consensus second quarter earnings, but slightly lower than expected revenues.

EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2017/07/31/stock-market-outlook-for-august-1-2017/

Note seasonality charts on the Technology sector, S&P 500 Index and the Utilities sector

Observations

Continuing weakness by the U.S. Dollar Index and its related ETF boosted precious metal prices again. Platinum moved above $891.35 per ounce to a three year high.

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The Euro and British Pound soared on U.S. Dollar Index weakness.

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Chinese equities continue to move higher.

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Prices of related base metal and base metal equities continue to track the Chinese equity market.

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StockTwits Released Yesterday @EquityClock

Canadian economy starting to fire on all cylinders as GDP surpasses estimates. See

http://www.equityclock.com/2017/07/28/stock-market-outlook-for-july-31-2017/

Technical action by S&P 500 stocks to 10:00: Quiet. Breakout: $ALL. Breakdowns: $DISCK, ROP.

Editor’s Note: After 10:00 AM EDT, breakout: CVX. Breakdowns: DISCA, BLL, MU and FLR

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Retail SPDRs $XRT moved above $41.22 completing a double bottom pattern.

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Imperial Oil $IMO.CA, a TSX 60 stock moved below $35.85 extending an intermediate downtrend.

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Valeant Pharm $VRX.CA, a TSX 60 stock moved below $$20.59 developing a double top pattern.

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Martinrea $MRE.CA moved below $10.12 extending an intermediate downtrend.

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Natural Gas ETN $UNG moved below $6.33 extending an intermediate downtrend.

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Editor’s Note: Spot price for natural gas broke support at $2.83.

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for July 31st 2017 clip_image014

Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Commodities Trends for July 31st 2017clip_image016

Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts

Daily Seasonal/Technical Sector Trends for July 31st 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 dipped another 1.60 to 64.60 yesterday. It remains intermediate overbought and trending down.

 

TSX Momentum Barometer

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The Barometer dropped 5.21 to 45.00 yesterday. It remains neutral and showing early signs of turning lower.

 

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 Tuesday August 1st 2017”

  1. Ron/BC Says:

    The Euro has rallied up to major price resistance. And on the flip side the U.S.$ that trades inverse has also reached major price support at the 92 area.

    http://stockcharts.com/h-sc/ui?s=%24XEU&p=D&yr=20&mn=0&dy=0&id=p46009480547&a=308127846

    http://stockcharts.com/h-sc/ui?s=%24USD&p=W&yr=20&mn=0&dy=0&id=p81110621194&a=388965041

  2. Ron/BC Says:

    The Canadian dollar is also at a strong price resistance level at 80 and very overbought with momentum rolling over. With its close relationship with $WTIC it does not trade exactly opposite to the U.S.$ like the Euro does. And with politics being what they are I would not short the CD$ even though the chart suggests just that. A run up to 84 would not surprise me.

    http://stockcharts.com/h-sc/ui?s=%24CDW&p=D&yr=3&mn=0&dy=0&id=p75754263406&a=511944637

  3. dutchcanuck Says:

    I have added 50% to my IPL holdings at an aver price of $24.40.
    Seasonality good here. Stock is dirt cheap (relatively) and nice div.
    Now have a 6% stake in IPL.

  4. roy Says:

    Hello Ron/BC – you would think gold would be rallying with the USD falling and also because gold in the seasonally strong period. What gives?

  5. Ron/BC Says:

    Roy
    It never matters “WHY” a market isn’t doing what it typically ‘should do’ but is often a heads up on something cooking we are not aware of yet. Recall the CD$ breaking below 72.50 and then instead of plunging to 70 cents on the breakdown it rallied back above that breakdown point and held. Then it ran up to and cleared the March low of 74 cents with most traders still short and waiting for the plunge. Smart money knew the B.O.C.governor was about to do a 180 degree reversal on policy. Money isn’t flowing into Gold like it would with a U.S.$ selling off and a positive seasonal trend. The charts are the footprints to follow not the ‘stories’. There are always stories of why something is doing what it’s doing. Stories make people feel good about what’s going on in the world and are reassuring and needed to make sense of things. The charts are saying until Gold clears $1300 price is simply biding its time. Doesn’t matter why,just that it is. When the big money boys decide it’s time to get on board precious metals it will show up in the charts first. Then the financial media will explain it all away with a great story once again like they always do. If precious metals were rallying threw the roof now the headlines would be all about the falling U.S.$. That would be believable and make everyone think it made sense and accept that. Just goes to show you not to assume anything. Perhaps Gold is going to plunge instead! After all it doesn’t pay any interest to hold it and there are far better investments to make. Big money will decide when to get off what they’re on now and when to get on the precious metals bandwagon. Meanwhile watch the charts for breakouts…..or breakdowns.

    http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=10&mn=0&dy=0&id=p93782511151&a=453195481

    http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=20&mn=0&dy=0&id=p83610476763&a=344896064

  6. dutchcanuck Says:

    IFC just reported great results for Q2.
    Earnings/sh $1.82. Combined ratio 95%.
    Stock should move higher tomorrow.

  7. Neil/Ab Says:

    Shop.t
    I Posted a couple of weeks ago on this one and its descending triangle. Support held rigorously at 110ish, the bottom of the triangle, then, today, boom, up 13% on the quarterly report. One would expect another couple of days of more muted buying. It will be interesting to see if it can get through and hold 134. Have in the past but don’t currently own. Has been a 5I fav for a long time and again, makes one question the two basic thesis of investing: buy a stock that, for whatever reason, you believe in and hold unless something fundamental changes, or, more aggressively, play the ups and downs. Much to be said for both styles.

  8. roy Says:

    Hello Ron/BC – re # 5 – Thanks for the explanation
    Hello Dutchcanuck – Have held IFC for a while now and has been stuck in a rut (perhaps consolidating),lets see the reaction at the open.

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