Tech Talk for Tuesday April 3rd 2018

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Pre-opening Comments for Tuesday April 3rd

U.S. equity index futures were higher this morning. S&P 500 futures were up 18 points in pre-opening trade.

General Electric (GE $13.16) is expected to open lower after Stifel Nicolaus lowered its target price to $13 from $15.

MMM (MMM $212.62) is expected to open lower after Stifel Nicolaus lowered its target price to $225 from $251.

Constellation Brands slipped $1.83 to $226.33 after Stifel Nicolaus lowered its ratings on the stock to Hold from Buy.

Schlumberger added $0.82 to $64.30 after SunTrust upgraded the stock to Buy from Hold.

EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/03/29/stock-market-outlook-for-april-3-2018/

Note seasonality charts on S&P 500 Index, Energy sector, Materials sector, Constellation Brands, Canada GDP, Natural Gas Storage and Natural Gas Futures

Observations

Trade war fears re-surfaced over the weekend after China announced tariffs on a wide variety of U.S. products. Gains recorded last Thursday by North American equity indices quickly evaporated. The VIX Index spiked higher.

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StockTwits released yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Quiet. Non intermediate breakouts. Breakdown: $ESRX

Editor’s Note: U.S. equity markets quickly deteriorated after 10:00 AM EDT, particularly when the S&P 500 Index dropped below its 200 day moving average. Fifteen stocks broke support. None broke resistance.

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Technical selling in U.S. equity markets partially triggered by a break by the S&P 500 Index below its 200 day moving average at 2,590

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Blackberry $BB.CA, a TSX 60 stock moved below $14.03 Cdn setting intermediate downtrend.

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Caterpillar $CAT, a Dow Jones Industrial stock moved below $142.85 completing a double top pattern. Chinese connection?

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Nike $NKE, a Dow Jones Industrial stock moved below $63.89 completing a modified Head & Shoulders pattern. Chinese connection?

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Homebuilders SPDRs $XHB moved below $39.46 extending an intermediate downtrend. Individual stock breaks in the sector: $LEN $PPG

Editor’s Note: Home construction ETF, ITB also broke intermediate support.

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United Technologies $UTX, a Dow Jones Industrial stock moved below $121.53 completing a double top pattern.

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Financial SPDRs $XLF moved below $26.66 completing a double top pattern.

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Health Care SPDRs $XLV moved below $79.28 completing a double top pattern.

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Money Center Bank ETF $KBE moved below $46.48 completing a double top pattern.

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Israel iShares $EIS moved below $48.71 extending an intermediate downtrend.

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AMEX Biotech ETF $FBT moved below $125.41 completing a double top pattern.

Editor’s Note: Another actively traded ETF, BBH also completed a similar pattern.

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U.S. Telecom iShares $IYZ moved below $26.36 extending an intermediate downtrend.

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Sherwin Williams $SHW, another home building oriented equity moved below $380.67 completing a double top pattern.

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for April 2nd 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Commodities Trends for April 2nd 2018

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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 2nd 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Next Wealth 365 Conference: April 9-14th

An excellent conference featuring over 70 well known speakers! The conference is free and is presented over the web. Following is a link:

https://summit.wealth365.com/register/

 

S&P 500 Momentum Barometer

The Barometer plunged 12.40 to 19.20 yesterday. It has returned to deeply intermediate oversold, but has yet to show signs of bottoming.

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TSX Momentum Barometer

The Barometer dropped 4.10 to 37.30 yesterday. It has returned to slightly intermediate oversold.

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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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10 Responses to “Tech Talk for Tuesday April 3rd 2018”

  1. Sandra Says:

    Ana: Sorry! Although posts very much appreciated I was not paying close attention to charts you posted as I did not trade US stocks very much (lack of USD!). But I will now as HVU.TO interests me. Keep posting. Thks!
    Sandra

  2. Ron/BC Says:

    Bernie
    Re:Monday #19. I’ve read about this bad time of year in U.S. mid term election years before and it really makes me wonder about Trump and his policies. He has a very small majority in the Senate and one would think he’d be walking on eggshells until those elections are over in November and doing things that would enhance republican re-election chances. But here he is challenging China with tariffs and that’s about as wise as poking a sleeping bear and they will respond the same and will be devastating to many U.S.companies that manufacture and supply goods to China. And those companies are in critical states that will quickly lose support for Republican Senators running for re-election. Once he loses control of the Senate to the Democrats and perhaps even the House of Representative he can forget ever passing any long term meaningful legislation. But he’s stupid like a Fox so we’ll see what his actions produce. I’ve know his type in business and they tend to cause a lot of commotion deliberately that throw the normal actions and reactions out the window, but they ultimately tend to get what they want at the last minute. I guess it’s a type of chaos theory. So I guess it’s time to be very cautious with the stock market for the balance of the year. I always am anyways so am not concerned. And it would be nice to see a ‘crash and burn’ scenario to pick up a good deal here and there. I’ve been busy looking at a few condos lately. Prices are coming down with all the new Federal and Provincial and Municipal restrictions along with rising interest rates and much fussier banks now. So many deals are falling apart as the places and buyers no longer qualify plus CMHC is not approving a lot of places without a Building Envelope Report over and above the standard Depreciation Report. And these condos that were built in the 70’s and 80’s have serious and expensive issues now with this 40 to 50 year time frame signalling the end of the lifespan of some major components. Very disheartening to find a great place to live and reading the Depreciation Report talking about the multi million dollar repair bills ahead. Meanwhile I still haven’t found a fantastic deal yet so will wait until one comes along. Hopefully with most repairs completed.

  3. Ron/BC Says:

    The $SPX continues to hold at its 200ema which is also its 2.25 year uptrendline. Amazing how often that 200ema rides along with the uptrendline. A break below that holds would turn a lot of major traders/investors bearish and likely see a further selloff ahead. Add that to the bearish trend in a mid term election year and odds start to fade for rising prices through 2018. Bottom line: Present prices need to hold to suggest any further upside ahead.

    http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=2&mn=6&dy=0&id=p95879226284&a=579408698

  4. Bernie Says:

    Ron/BC,

    Re: #2
    If there is a 20% correction in the U.S. market this summer I can’t see Trump surviving his 1st term in office. He’ll either fire himself due to dwindling support or the opposition will gather up enough dirt to impeach him. If there’s no correction, there’ll just be more of the daily goofiness we’ve come to expect from the guy. That’s my opinion but what do I know. I didn’t think Trump had a prayer in getting elected in the first place.

    It sounds like you miss owning your own home Ron Are you growing tired of renting?

  5. FishFat Says:

    Canadian Natural Resources (CNQ.to)
    Today CNQ broke-out of a triangle consolidation pattern. The break-out volume was weak, but a potential stock entry point may be developing. I am waiting for the long-term modified MACD(50,200,20) to cross the signal line and move above the zero level. In addition, I want to see the SCTR above 75 (it is currently at 72.) There is also overhead resistance at 42.14 that needs to be overcome.

    http://schrts.co/5NCLRE

  6. Ron/BC Says:

    Bernie
    I don’t actually miss owning my own home as I bought my first home at 21 and after many homes lived in all I ever did was spend money on them. And the place gets older and older. It’s nice to get off that train as I realized there is a time and place for everything in life. Nothing stays the same. So now I just do what I enjoy without any obligation to repair the place. But after 3 years renting I wouldn’t mind finding a place to buy and enjoy somewhere different with still nothing much to do. I wouldn’t mind painting it out as well if need be and making a few changes if viable. A change is as good as a rest they say. But I also enjoy being in cash and free as a bird with no obligations whatsoever. Mixed emotions for sure. So I’ll wait for a great deal to come along as they always do if patient and just enjoy life. My partner has a very nice condo and I spend most of my time there so have nothing to complain about.

  7. Ron/BC Says:

    Bernie
    Well the sooner the better Trump is gone as far as most in the world are concerned. There are enough serious issues in the world to deal with without a loose cannon in charge of the most powerful country in the world. But most of his comments are b.s. posturing. I’d like to see other countries call his bluff and threaten him right back again. Looks like China is doing exactly that and it’s a game they will win. Trump will back off and make out he solved the problem he created. B.S. baffles brains. Always has and always will unfortunately.

  8. Bernie Says:

    I hope Trump doesn’t mess up global relations anymore than he has already before he’s out of the White House but I’m not stressing over it. I don’t watch the international news as closely as I used to. There’s more to life than sitting in front of a TV or computer all day. It is nice to be “free as a bird” as you say. I’m not in cash but I consider my investments low key, low maintenance on the most part. I still dabble with my TFSA but am leaning hard to turning my holdings into a diversified mix of mutual funds, mostly Mawer.

  9. Bernie Says:

    Ron/BC,

    Sorry, forgot to address #8 to you.

  10. Ron/BC Says:

    Bernie
    Well I’ve known a few guys like Trump and they create havoc for the sole purpose of throwing everyone off guard for their own means. That’s all Trump does. He’s a good bluffer that throws everyone off their game. And then he does a complete reversal on his terms and everyone thinks they are lucky it all worked out. I put my TFSA and some cash into the 4% 32 month Term deposit Coast Capital offered. So I can’t trade with that anymore but still have my RIF that starts paying me this year. I guess it’s good to start receiving income from that RIF after all these years and with the TFSA interest income I could buy a $250K to $300K condo and those two incomes that I never received before would cover the interest lost on buying a condo with my cash. And the monthly strata fees and taxes would be far less than my present rent. So I am getting buy just fine but do have to watch my expenditures. One never knows what’s next for sure. I’ve learned that over the years and don’t ‘assume’ anything.

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