Tech Talk for Tuesday January 30th 2018

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Pre-opening Comments for Tuesday January 30th

U.S. equity index futures are lower this morning. S&P 500 futures were down 11 points in pre-opening trade.

Apple dropped $2.00 to $165.96 on reports of a slowdown in iPhone production. The stock is expected to open below support at $166.46.

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Fourth quarter reports continue to flow in. Reports released this morning included Harley Davidson, McDonalds, Pfizer and Aetna.

Thomson Reuters gained $4.55 to $48.00 after confirming a bid by Blackstone to purchase its financial services business.

UnitedHealth Group dropped $16.91 to $230.50 and CVS plunged $5.63 to $78.00 after Amazon, Berkshire Hathaway and JP Morgan announced plans to combine healthcare services for their employees.

 

EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/01/29/stock-market-outlook-for-january-30-2018/

Note seasonality charts on the TSX Composite Index, Canadian Dollar, NYSE Margin Debt, Credit balances in margin accounts, Commercial and Industrial loans, Airline industry and Chemical industry.

 

Observations

Volatility in U.S. equity markets spiked when the Dow Jones Industrial Average recorded its largest one day drop since September 2017.

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Equity indices responded to yield on 10 year Treasuries reaching a 4 year high.

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Conversely, price of the long term Treasury ETF broke to a 3 month low. A move below $121.66 will complete a Head & Shoulders/ Double Top pattern.

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StockTwits released yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Quietly bullish. Breakouts: $DPS $ZBH $COO $LLY. No breakdowns.

Editor’s Note: After 10:00 AM EST, no additional breakouts. Breakdown: DHI

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Cascade $CAS.CA moved above $14.88 extending an intermediate uptrend.

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AltaGas $ALA.CA moved below $27.89 setting an intermediate downtrend.

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Brookfield Asset Management $BAM, a TSX 60 stock moved below $41.34 extending an intermediate downtrend.

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Inter Pipeline $IPL.CA, a TSX 60 stock moved below $24.90 completing a Head & Shoulders pattern.

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Restaurant Brands $QSR.CA, a TSX 60 stock moved below $75.16 extending an intermediate downtrend.

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Cameco $CCJ, a TSX 60 stock moved below $9.12 establishing an intermediate downtrend.

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for January 29th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Commodities Trends for January 29th 2018

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Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts (as happened last week)

Daily Seasonal/Technical Sector Trends for January 29th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Keith Richards’ Blog

Keith says, “A near term correction is probable”. Following is a link:

http://www.valuetrend.ca/neartermed-correction-probable/

 

S&P 500 Momentum Barometer

The Barometer dropped 3.80 to 80.20 yesterday. It remains intermediate overbought and showing early signs of rolling over.

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TSX Momentum Barometer

The Barometer plunged 9.70 to 46.50 yesterday. It has dropped to intermediate neutral from overbought and is trending down.

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Disclaimer: Seasonality and technical ratings offered in this report and at

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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26 Responses to “Tech Talk for Tuesday January 30th 2018”

  1. Sandra Says:

    Ron/BC:
    Pullback giving an opportunity to pick up some good growth stocks hopefully with dividend.
    I am watching EMA.TO, PPL.TO (still in downtrend), PKI.TO and EIF.TO (still in downtrend).

    When you get a chance please share what you think of entry point?

    Bernie: thanks for sharing that article yesterday.

  2. dutchcanuck Says:

    PAT.V big hammer on daily chart after it jumped to $2.60. Sold half after 50% gain in 2 days.
    Will buy back soon, maybe even today. Seems the new technology is real.

  3. Sandra Says:

    Hi All,
    I am going to Puerto Plata, Dominican for the first time for a week. Leaving on Thursday. Wondering any suggestions if I should convert to Pesos here OR just take USD?

    No idea of how much things cost- don’t drink, don’t smoke may indulge in small souvenirs. Outside the resort will try their snacks/dinner in a restaurant- everything else is already included in the package. How much would you take?

    Thanks!

  4. Mick/NV Says:

    Sandra

    I haven’t been to the Dominican Republic, but if you are staying in an all inclusive you won’t need much cash. When I go to Jamaica, I take $200 US, this allows be to buy some coffee,liquor and any other items I may want, I have never spend it all. Enjoy the sunny and warm weather!

  5. Ron/BC Says:

    Sandra
    EMA.to recently broke its uptrendline and most of the time a breakdown means lower or sideways price action. Best support here is at about the $45.40 area and if reached a stop loss below that at your comfort level. Time to watch these Utility stocks to see if they hold important price support. I wouldn’t hold any of them if they broke solid support levels. PPL.to broke short term support and is now pulled back to its 2 year uptrendline. More important price support is in the $37 area. Price is oversold but oscillators will also show oversold and rebound within downtrends as well. Lower longer term techncials are bearish.

    http://stockcharts.com/h-sc/ui?s=EMA.TO&p=D&yr=2&mn=0&dy=0&id=p34794849021&a=569503889

    http://stockcharts.com/h-sc/ui?s=PPL.TO&p=D&yr=3&mn=0&dy=0&id=p61511207393&a=552786570

  6. roy Says:

    Hello Sandra
    Sounds like you are going on an all incl. vacation. Ive been to the D.R. Nice place and take USD (dollar bills) as you can give tips as the waiters/waitresses etc there depend on tips for their livelihood. If you give tips,I noticed service will also be much better as well. DR coffee is very nice and so is their vanilla extract.We dont usually go out of the resort except by taxis approved by the resort and the tours also sold at the resort which can be quite expensive.

  7. Sandra Says:

    Mick/NV, roy:
    Thanks for your suggestions! Looking forward to the trip. Need a break in some place warm and sunny so even with a week feel so blessed.
    It is all inclusive. I agree one should take care of the people that serve you. Been to Cuba couple of times, Negril and Montego Bay in Jamaica. Tips $ and small items I take from $ store are always appreciated. Always met nice people in these places. By the end of the trip they become your friends. As per recent reviews of the resort, place WIFI in rooms and everywhere so will take laptop or Ipad but am really looking forward to being away from the computer.

  8. Larry/ON Says:

    Sandra – Resorts are safe in DR but you really need to be careful going off resort. They sell a special semi-precious turquoise stone that is set in necklaces etc that makes a good souvenir. Wish I was going south but I will manage it sometime. Hope you have a great time.

  9. Sandra Says:

    Paula:
    Looking at hrly chart looks like ECA.TO could come down to 14.25 even though it bounced back today as it was outside LBB.
    Or did it find support today as on daily chart – it did not go below the trend line. Ahmmmm….confused!

  10. Sandra Says:

    Larry/ON:
    I [ut Turquoise stone is on my buy list…Hehe!!

    I googled it to see what it looks like…
    The turquoise is a healing gemstone representing the healing power of Venus and Neptune. Wearing a consecrated and an energized turquoise leads to increase of respect in society, success and happiness. It is believed to remove the effect of poisonous substances.
    Highly beneficial in remedies of the gastric system, chest and eye problems! A person wearing an energized and a blessed turquoise will be protected from evil eye and occult practices and spells.

    And thanks for the advise… if we go out of resort will prefer to go with other groups. It is adults only resort so am sure will meet people who may want to go into town or attractions nearby.

  11. Sandra Says:

    Ron/BC:

    SU.TO and CNQ both broke the trend line.

    Your chart:
    http://stockcharts.com/h-sc/ui?s=SU.TO&p=D&yr=2&mn=0&dy=0&id=p50950941334&a=571501926

  12. Ron/BC Says:

    Sandra
    I expect to see a lot of breakdowns ahead. Might be time to place stop losses on all your positions before going away. You never know you might come home and be back in cash again. Not such a bad fate. Just remember CPG.TO and all those highly recommended Royalty stocks fate. Always need a line in the sand for most everything.

  13. Wayne Says:

    Ron/BC,
    Sunny day here in Charlotte. Getting used to southern living.
    I just heard an expression that I thought that you had patented. I always hear you say that the charts tell the story – not the BS that you hear from all the talking heads out there.
    Here it is:

    “Everybody in this business is selling BS, and they never run out of inventory.” HA!!

  14. Ron/BC Says:

    Wayne
    That is true and a good one to remember! B.S. baffles brains they say and it always seems to work.

  15. Ron/BC Says:

    Someone mentioned FTK.to awhile ago here. I think it was either Sandra or Sherri.But I posted it then and commented that it looked like it was likely to run up to $8 to $9. Price broke out over this $5.50 resistance level and ran up to $6.50 resistance and has now pulled back to $5.50 support and still looks healthy. And with today’s strong market pullback notice Price closed near the highs of the day as well. No guarantees in this world but there was good price action on this stock recently. Wouldn’t hold it below $5.25 though.

    http://stockcharts.com/h-sc/ui?s=FTK&p=D&yr=1&mn=0&dy=0&id=p72281558746&a=569890246

  16. Sherri Says:

    #15 Ron/BC
    Wasn’t me but thanks 🙂

    Reminder of Armstrong’s comments on the DOW from January 1:

    “The entire point is that 2018 is a Panic Cycle Year and the profile appears to be choppy noting every other month until we reach July. The Empirical models point to May as the strongest target with a Monthly Panic Cycle at that time. What does appear is March and May should produce opposite events. This 25,000-28,000 is the new barrier. Once we get through that area, then the next minimum target becomes 32,000.

    Keep in mind that the dollar is still vulnerable short-term. We could still see the Euro rally to the 12570 level before it declines. So a decline in the dollar could spark foreign selling and that means we could see weakness in the Dow before we get the strength.”

    Can’t wait to hear all the guru’s at the WOC in Vancouver this weekend!

  17. Ron/BC Says:

    Sherri
    Well perhaps we should pay your way to go to the WOC and you can update us on what you learned. I’ll pitch in some money for you to go if you like. Let me know. The old saying is “You gotta spend money to make money.” Very true……..
    Thanks for the update. I’ve not been impressed with a lot of price action for awhile now. But his comments are very believable looking at parabolic rises and rate increases along with the U.S.$ selloff which doesn’t add up.

  18. Ron/BC Says:

    Going through a ton of charts and I see TRP.to is very,very oversold and has pulled back to important price support at the $55 area. No guarantee it will hold but is something to pay attention to.

    http://stockcharts.com/h-sc/ui?s=TRP.TO&p=D&yr=2&mn=0&dy=0&id=p78770491459&a=539886396

  19. rocketdave Says:

    #18
    RON/BC

    Thanks for the heads up on TRP.to
    Looks like a good entry point.

  20. rocketdave Says:

    AAPL looks like a bounce from here…but i think that is all it will be IMO.

  21. Paula Says:

    Sandra: re ECA.TO. 14.25 is possible but, so far it has held the daily 20ema/pivot and is in an uptrend. I think you see that.

    http://stockcharts.com/h-sc/ui?s=ECA.TO&p=W&yr=5&mn=0&dy=0&id=p72697784230&a=571057166

    Ron/BC: I have been waiting for TRP.TO to correct. Maybe this is it. But all of these pipelines are heading down. Also, it is influenced by dividend; the next x-dividend won’t be until near the end of March. That may bring a better opportunity. I remember this one going down much further than I expected in 2015 and then going up much further than I expected in 2016/2017. A guest on BNN (Greg Newman) recently suggested selling puts at the 55 level. I used to do this…a lot. Not so eager any more.

  22. Ron/BC Says:

    Paula
    Short term indicators show TRP.to at important price support and it is very,very oversold. But look at the ratio chart of it compared to the Pipeline Index and see it is underperforming it consistently. Also see the lower ‘trend’ indicators are bearish presently as well. They are slower to turn around but are definitely not showing any sign of bullishness yet. Might be good for a price bounce but with the present selloff it might be like trying to catch a falling piano too. Would be better to see some sign of a turn around before getting long. That applies to a lot of markets that are breaking down now.

  23. dutchcanuck Says:

    Major breakdown on IPL.TO today. Neckline has been broken from a H&S top.

  24. Sherri Says:

    #17 Ron/BC
    Too kind once again, thank you, but no. I will try to pass on what I learn from the WOC as my contribution to this blog in repayment of all the great advice I have gotten.

  25. Ron/BC Says:

    $GOLD has bumped up against its major price resistance at $1365-70 area once again and backed off. The major trend is still up and the trend is still positive. A breakout over this resistance is needed to suggest a run up to $1417. Meanwhile resistance is resistance.

    http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=2&mn=0&dy=0&id=p49356647091&a=420363540

    http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=2&mn=0&dy=0&id=p49356647091&a=420363540

  26. Sandra Says:

    Ron/BC: FM.TO

    Can you review this chart please?

    https://www.tradingview.com/x/bjuQE9QR/

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