Tech Talk for Friday March 2nd 2018

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Pre-opening Comments for Friday March 2nd

U.S. equity index futures were lower this morning. S&P 500 futures were down 21 points in pre-opening trade.

The Canadian Dollar dropped another U.S. 0.30 to 77.69 cents after President Trump announced intentions to place tariffs on aluminum and steel. Canada is the biggest supplier of aluminum to the U.S.

The Canadian Dollar was virtually unchanged following release of Canada’s December GDP report. Consensus for December was a month-over-month gain of 0.1%. Actual was a gain of 0.1%. Fourth quarter GDP rose at a 1.7% annual rate.

JC Penney dropped $0.40 to $3.52 after reporting lower than consensus fourth quarter revenues.

McDonalds fell $2.86 to $152.84 after RBC Capital lowered its target price to $170 from $190.

Footlocker plunged $4.87 to $41.01 after reporting lower than consensus fourth quarter revenues. The company also lowered its guidance.

Wal-Mart dropped $1.23 to $87.85 after Oppenheimer downgraded the stock to Perform from Outperform.

EquityClock’s Daily Market Comment

Following is a link:

Note seasonality charts on Construction Spending, Steel industry and REIT Index

StockTwits Released Yesterday @EquityClock

U.S. Dollar Index and related ETF $UUP completed a double bottom pattern on a move above 90.45.

Editor’s Note: The Index reversed following news of the proposed steel/aluminum tariffs


Gold ETF $GLD moved below $124.79 moved below $124.79 completing a double top pattern.


‘Tis the season for gold to move lower into April! $GLD


Silver ETN $SLV moved below $15.26 extending an intermediate downtrend.


Homebuilders SPDRs $XHB moved below $40.13 extending an intermediate downtrend.


Platinum ETN $PPLT moved below $91.21 completing a double top pattern.


More S&P 500 stocks break support following news of steel and aluminum tariffs. $HIG $DLPH $CVS $HSIC $DVA $JCI $ROK $MLM $ZBH $TSCO $CB $BHF $SNA.

U.S. construction spending fell 9.7% in January, marginally greater than the 9.0% average decline for first month of the year.


S&P 500 Index averaged a gain of 1.2% in March, positive in 66% of periods during past 50 periods.

General Motors $GM moved below $39.51 in response to steel/aluminum tariff proposal extending an intermediate downtrend.



Trader’s Corner

Note the important change in momentum by a wide variety of indices, commodities and sectors


Daily Seasonal/Technical Equity Trends for March 1st 2018


Green: Increase from previous day

Red: Decrease from previous day


Daily Seasonal/Technical Commodities Trends for March 1st 2018


Green: Increase from previous day

Red: Decrease from previous day

* Excludes adjustment from rollover of futures contracts


Daily Seasonal/Technical Sector Trends for March 1st 2018


Green: Increase from previous day

Red: Decrease from previous day


S&P 500 Momentum Barometer

The Barometer plunged 9.28 to 29.60 yesterday. It has returned to an intermediate oversold level.



TSX Momentum Barometer

The Barometer added 0.81 to 26.02 yesterday. It remains intermediate oversold.



Disclaimer: Seasonality and technical ratings offered in this report and at 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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38 Responses to “Tech Talk for Friday March 2nd 2018”

  1. Larry/ON Says:

    BAC – Ron/BC – Here is your pull-back to pick it up at the 50 day MA. I have a lot of BAC. I picked up JPM today.

  2. Ana Says:

    $SPX $ES

    I H & S to take us to 2687, then another I H & S to take us up as high as 2720 – 2730.

  3. Larry/ON Says:

    $CAD at an interesting level of critical support around 77.50 where it made lows in Oct and Nov last year. On a fundamental basis I can’t see anything going to support CAD be it interest rate differentials, the price of oil, the anemic GDP growth we now have or the recent Morneau budget. Maybe we get some waffling at this level and then I’m betting the next move down to 72.50.

  4. Larry/ON Says:

    Forgot to mention trade. Trump’s like Godzilla out to squish the life out of us. The day you see a sure NAFTA agreement is when $CAD climbs.

  5. Ron/BC Says:

    BAC touched its 6 month uptrendline and instantly bounced off it first thing this morning so I never caught it. First thing on the West Coast is about 6:30am. If I did I’d likely cash out now with a nice profit. I’m in no hurry to buy into this market as it still has a lot of consolidating to do. The two year uptrendline on BAC is at a more realistic trend to hold and it’s at $27-$28. It wouldn’t surprise me to see that tagged over the next few months. And there is always the option of buying a breakout if it does take off.

  6. Ana Says:

    Thank you for the update from Armstrong, Sherri!

    How is the job going? Are you trading too?

  7. Ron/BC Says:


    Have a good trip and don’t forget to bring back some sunshine!!!!!!!

  8. Ana Says:

    #4. Larry/ON

    The tariffs that Trump just announced are in contravention of Nafta. Canada will take this to the World Trade Organization. Trump thinks he can do what ever he likes as if he were running his business. He can not. Canada has already filed a broad international complaint against the U.S.

  9. rocketdave Says:

    Trump know’s how to shake things up…he’s a business master

  10. Ana Says:

    Any one day trading today?

  11. rocketdave Says:

    I’m waiting until next week or the week after to trade.

  12. Ron/BC Says:

    Had I got up at daybreak and had my finger on the buy button I could have made $500 U.S. in short order. But it just isn’t as important to day trade as it once was. At least not enough to set the alarm and be at the computer in the dark waiting to pounce like a cat at a mouse hole. Just don’t need to do that anymore so the thrill and excitement isn’t what it used to be. And I’ve learned you don’t really miss anything as all you are doing when day or swing trading is trading from point A to point B so it doesn’t really matter at what point you do this. It can be at any price points up or down.

  13. JP/BC Says:

    Re. #5 – What struck me on the second chart is that BAC would have to fall 50% to reach the long term trend (since 2012). That’s incredible for a huge company.

  14. rocketdave Says:


    Good point

  15. Larry/ON Says:

    “From the rising 200day moving average and the overnight S&P500 futures lows from the previous Monday night equities have rallied sharply.

    Since then, almost immediately, the four key short term breadth indicators Barometer uses reversed up after the sharp declines that began as extremely overbought and finished as oversold. These include % of NYSE stocks trading above their 50 day moving Averages, % of NYSE stocks trading above their 150 day moving averages, % of NYSE equities with positive weekly price momentum and % of NYSE Equities hitting new highs vs. new lows. Barometer removed the futures hedges put in place January 30th on Feb 9th.
    Almost immediately following the short term indicators positive reversal (improving breadth) our key long term indicator reversed back up signalling a continuation in expanding market breadth and allowing the Barometer Team to redeploy accumulated cash in various portfolios.”

  16. Ana Says:

    #12. Ron/BC

    Well, it is a game. Start on March 1st, see how long it takes to make the budge for the month. So the goal is to pay off bills. Might not be so exciting to someone who is just a money collector with no goal for your trading. Then save the funds you make for the entire year of bills! Then put the extra funds in a savings account for the vacation condo! I guess there is excitement to see that money grow, but it is not a necessity.

    Keeps the mind sharp and I keep improving. I am developing the sense to stay out of the market when I have no clues to the direction. So developing discipline.

    I have always been someone who works best with a goal. So this works for me.

  17. Ana Says:

    #9. rocketdave,

    Trump is just trying to distract and making time to try to hide all of his criminal activities. I guess you could call him the master distractor.

    Yes, the business master who does not pay his sub trades and files for bankruptcy whenever things do not go his way, not much of a business master. More of a dishonest, look after your family and make other people pay kind of a person.

    It might take a bit more time, but I am looking forward to his departure on that helicopter away from the White House.

  18. Ron/BC Says:

    Yes BAC has come a long way very fast. Just over two years ago it was a $10 stock and now it’s more than triple that. Major support is at $18 which is about a 50% retracment from high to low. So a pullback to $28 or even $18 in a major market correction would not be unusual. Meanwhile a breakout over the recent highs could be bought as well if one is confident of a continuation of this rally. Most charts show the broad market needs to pullback to their longer term uptrendlines and consolidate. I don’t expect much on the upside for some time. But if something breaks out or tests important price support it can be bought. Just don’t marry anything.

  19. rocketdave Says:


    Some people like Trump and some don’t. As for me, well i like Trump. The only guy with any balls to say and do what he says. The thing is i think, that no one seems to want to stand up to him and those who do, later shy away. It’s all a big game and that is how it is. It is what it is and we have to live with it.

  20. Ron/BC Says:

    Perhaps just getting rid of the bills coming in would solve the problem. I sold my home 3 years ago so no more repairs and renovations or high basic house bills. My rent costs are a fraction of basic house costs now and with no surprise costs anymore with house and yard etc I don’t worry about the present bills now being so small. And my house money is making plenty of cash interest to pay for everything including holidays. My trading accounts are not even needed anymore for income. Should have done it years before. So dump your house and enjoy life instead. It’s time to get rid of the albatross and live.

  21. Ron/BC Says:

    BAC tested its 6 month uptrendline this morning early and has bounced back to $31.66. This was support that broke down on the 60 minute chart. Price needs to clear $31.66 and hold to suggest a run to the previous highs again. Failing to do this will likely see BAC fall back and retest the $30.60 area again or lower.

  22. Ron/BC Says:

    A day trader could short BAC at the 31.60 area resistance on the 60 minute chart and expect a pullback lower and exit end of day with a profit. Of course you would also need to have an end of day stop loss above $31.66.Odds favour it turning out ok. But then again it is just another day trade not a marriage so the consequences are not that serious.

  23. Ana Says:

    #19. rocketdave,

    When do you know when Trump is talking for himself and when he is talking for the people that are providing money for him?

  24. Ana Says:

    “Ana Says:
    March 2nd, 2018 at 11:26 am
    $SPX $ES

    I H & S to take us to 2687, then another I H & S to take us up as high as 2720 – 2730.”

    I am getting better!

  25. Sandra Says:

    What a close after all that volatility! Interesting conversations here..thanks everyone.
    Have a wonderful weekend.

  26. Sandra Says:

    While everyone dealt with chaos created by Trump he took time out today to tweet about saving Alec Baldwin’s career (impersonating him on SNL) … LOL!!

  27. rocketdave Says:

    Trump should try stand up comedy lol

  28. Sandra Says:


    Trump needs a prompter to finish a sentence properly..will not work for stand up comedy!

  29. Wayne Says:

    This guy’s daily report might be of interest to you.

  30. rocketdave Says:


    LOL!! good one
    maybe he can befriend Clinton or Bush. Now that would be a trio…lol

  31. Neil/Ab Says:

    Entered your VB.t today at 7.18. Seemed like a good opportunity after the recent pullback.
    Also picked up a little BYL.t at 3.79

  32. Neil/Ab Says:

    I notice Sleep Country finally woke up today (+15%).

  33. Mick/NV Says:



    Arrived a couple of hours ago, nicely settled in, pleasantly warm not hot which is nice, beats the rain in van.

  34. Neil/Ab Says:

    Boyd, the car repair consolidator, just broke out over a double top to new highs. Owned it in the past, don’t own now, but looks good at the moment.

  35. Neil/Ab Says:

    The more I look at Boyd the better it looks. Can’t argue with the three year chart, check it out. The one year shows a really nice cup and handle with two significant tests of the handle and now breaking above.
    I’m thinking this is looking very good. Would appreciate hearing from any other TA oriented folks as to their thoughts.

  36. Sherri Says:

    #35 Neil/Ab
    For what it’s worth, Boyd is still a long term buy recommendation from KeyStone Financial.
    They first recommended it when it was closer to $2.00

  37. Ana Says:

    #34. Neil/Ab

    How can anything look good to buy when the market is on a roller coaster ride, mostly going down these days? Maybe try back after a low has been put in? Or is that incorrect thinking?

    How come you are not in Mexico at your condo?

  38. Ana Says:

    #29. Wayne,

    Thank you so much for that video! “Tens of billions of dollars were thrust into the market!” That explains a great deal of activity that was unbelievable and was not expected. I liked his reference to “prayers delayed not denied.”

    I almost do not want to post what I think looks like a pattern, for fear of looking like a complete fool. “I see dead people”, I see head and shoulder patterns! See the similarity! 😀

    So, this will help me to stay out of the market if the pattern is not working out or if there is not visible pattern. You really can not argue with the direction when there are “tens of billions thrust into the market”.

    What have you been trading, Wayne? So we are back into an inflationary market again. I will never forget 1981, our rates have been falling ever since then. Those with a big bank account will be happy to see the rates rise again.

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