Tech Talk for Thursday May 10th 2018

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Pre-opening Comments for Thursday May 10th

U.S. equity index futures were higher this morning. S&P 500 futures were up 7 points in pre-opening trade.

The British Pound moved slightly lower after the Bank of England maintained its overnight lending rate at 0.5%.

Index futures moved slightly higher following release of economic news at 8:30 AM EDT. Consensus for Weekly Jobless Claims was 220,000 versus 211,000 last week. Actual was 211,000. Consensus for the April Consumer Price Index was an increase of 0.3% versus a decline of 0.1% in March. Actual was an increase of 0.2%. Excluding food and energy, consensus for the April Consumer Price Index was an increase of 0.2% versus a gain of 0.2% in March. Actual was an increase of 0.1%

Qualcomm gained $0.96 to $54.13 after announcing a $10 billion share buyback program.

First Solar added $2.05 to $71.48 after JP Morgan raised its rating on the stock to Overweight from Neutral. Target was raised to $85 from $74.

EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/05/09/stock-market-outlook-for-may-10-2018/

Note seasonality charts on Crude Oil Days of Supply, Gasoline Days of Supply and Crude Oil.

 

Observations

S&P 500 Index and Dow Jones Industrial Average moved above their intermediate downtrend yesterday, a short term positive technical sign.

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StockTwits Released Yesterday @EquityClock

Wal-Mart $WMT, a Dow Jones Industrial stock moved below $84.64 extending an intermediate downtrend.

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Technical action by S&P 500 stocks to 10:00: Bullish. Intermediate breakouts: $TRIP $RIG $CSX $EA. Breakdowns: $WMT $ED

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Kinross Gold $KGC $K.CA, a TSX 60 stock moved below $13.57 Cdn. on news.

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AltaGas Income $ALA.CA moved above $25.70 extending an intermediate uptrend.

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TransCanada PipeLines $TRP.CA, a TSX 60 stock moved above $56.40 setting an intermediate uptrend.

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Intact Financial $IFC.CA moved below $94.57 extending an intermediate downtrend.

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Oil services stocks on both sides of the border leading North American equity markets on upside: $OIH $RIG $SLB $PDS $DO $TCW.CA

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U.S. utilities move lower when 10 year Treasuries yield moved above 3.00%. $NEE $ED

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#PPI higher at 0.6% (NSA) in April, edging out the average increase for month of 0.5%. #Inflation #Economy $MACRO

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United Kingdom iShares $EWU moved above $35.65 extending an intermediate uptrend.

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Manulife Financial $MFC.CA, a TSX 60 stock moved above $24.77 completing a modified reverse Head & Shoulders pattern.

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Bank of Montreal $BMO.CA, a TSX 60 stock moved above $99.06 setting an intermediate uptrend.

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Big rebound in the level of gasoline supplied helping to draw on stockpiles in the recent week. #OIL $USO $UGA $XLE

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for May 9th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Commodities Trends for May 9th 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 May 9th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

S&P 500 Momentum Barometer

The Barometer gained 6.00 to 52.80 yesterday. It remains intermediate neutral.

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TSX Momentum Barometer

The Barometer slipped 2.88 to 68.31 yesterday. It remains intermediate overbought.

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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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18 Responses to “Tech Talk for Thursday May 10th 2018”

  1. Larry/ON Says:

    GOOGL – Cleared major resistance at 1097. Lots of room to run to 1150. Tech in good shape

  2. Larry/ON Says:

    David Burrows Today – “New leg higher? With tech, energy, investment dealers and small caps making new relative highs vs SPY and Volatility breaking down it gets harder and harder to argue against our bullish case. Resolution….Short covering will add fuel.”

  3. NRG Says:

    A Balanced Portfolio

    Just my opinion. Income stocks have been losing value in my monthly retirement portfolio due to the rising interest rates. But most stocks in this portfolio are showing good dividend increases which are higher than the cost of living increases. Dividend increases by companies show that these companies are confident that earnings are growing so I expect share prices will recover.
    At the same time my RRSP in which I have a selection of growth stocks (and Interest stocks) is showing good strength. Companies including Great Canadian Gaming, Covalon Technology, Photon Control in which I own ( and recommended by 5I Research) have shot up this last week.
    All in all I am pleased with this approach.

  4. Ron/BC Says:

    Big Test right here for the $SPX. Price is poking its nose above the downtrendine of the three and a half month Symmetrical Triangle. What is more important is clearing first price resistance of 271 which is the mid April high and where price is right now. This is also a classic “W” pattern over the last 6 weeks that tends to be very reliable. Clearing 271 AND holding above it would suggest a further rally to and through 279 and to a double top of 285. Meanwhile resistance is resistance and price needs to clear and hold above the downtrendline AND 271 to suggest such a bullish scenario. Failure to do this could see a price reversal just like a car at the top of an icy hill spinning its tires. Time to pay attention for sure…………..

    http://stockcharts.com/h-sc/ui?s=SPY&p=D&yr=1&mn=8&dy=0&id=p37034304339&a=579408339

  5. Larry/ON Says:

    SP500 just cleared major resistance at April high of 2717.49 setting up the market to move to 2800.

  6. Ron/BC Says:

    Re:#4
    Should read the ETF:SPY not the $SPX Index.

  7. Sandra Says:

    NRG: congrats on owning Great Canadian Gaming. Happy for you. Hope you took the profit.

    Ron/BC: USD and oil moving in same direction. Concern for oil stocks or no?

    Thanks

  8. Ron/BC Says:

    Sandra
    The U.S.$ and $WTIC don’t have a perfect inverse relationship. Too many other factors to draw a conclusion on a rising U.S.$.

    http://stockcharts.com/h-sc/ui?s=%24WTIC&p=D&yr=3&mn=0&dy=0&id=p94299330769&a=579408501

  9. KC Says:

    Hello Ron/Bc,

    Would really appreciate having your thoughts on UGA again. Seems like it broke above resistance today ? Would you buy if it hold above ?

    Thanks,
    KC

  10. KC Says:

    Ron/BC,

    One more please……

    Have you commented on the $US/$CAD trade for the past few weeks ? If not, could you please share your TA and thoughts on whether the USD is seriously overbought here? Would you be inclined to convert to CAD at this point if you were holding US cash ?

    Thanks,
    KC

  11. Ron/BC Says:

    KC
    UGA has broken out and looks very positive. It is overbought and each time the RSI 8 has gone over 70 price has pulled back somewhat. Doesn’t guarantee a pullback but odds favour that. As long as price remains above $33.50 it’s healthy. Price appears to be breaking out of a 3 year $11 channel.

    http://stockcharts.com/h-sc/ui?s=UGA&p=D&yr=3&mn=0&dy=0&id=p51379672370&a=590973194

  12. Ron/BC Says:

    KC
    The U.S.$ had a one year correction and stabilized at its 7 year uptrendline. Price has since broken back above the 15 month downtrendline and recleared 92. Price is overbought and due for a pullback. I wouldn’t expect it to pullback further than 91 to 92. The CD$ hasn’t responded well to the rising oil price until just recently and then only a dead cat bounce. That is very bearish as the CD$ has always responded to a strong oil price in the past. Major corporations are selling off Canadian oil business interests. I can’t see the CD$ doing much of anything on the upside with the restrictive policies the Feds have put in place compared to the pro business policies in the U.S. And Stephen Poloz will be happy with a low CD$ so we can export and sell everything at a discount to our trading partners and keep the economy going despite restrictive federal policies. He doesn’t have a lot of choices now. So I don’t expect a lot of interest rate hikes such as the U.S. is having due to this. That will also keep the CD$ comparatively low. I have all my RIF cash in U.S.$ and am not worried about it. But technically as long as the CD$ holds above 76 and doesn’t exceed 82 it is in the comfort range the government would like to keep it in.

    http://stockcharts.com/h-sc/ui?s=%24USD&p=W&yr=20&mn=0&dy=0&id=p17689941555&a=579408368

    http://stockcharts.com/h-sc/ui?s=%24CDW&p=D&yr=3&mn=0&dy=0&id=p02713641905&a=579408525

  13. Sandra Says:

    Bernie:
    EIF.TO has done well. My target is $1 everyday in my trading account. Are you holding for dividends?

  14. Sandra Says:

    Ana:
    What do you see for tomorrow? Put on your magical thinking cap !

  15. Ron/BC Says:

    KC
    with the overbought U.S.$ likely to pullback and Oil rallying to $77 as the chart has been suggesting a CD$ &other currencies are likely to rally along with other commodities. The trick is where can you convert your U.S.$ & CD$ for less than 2 cents exchange rate.

  16. Bernie Says:

    Sandra,

    Re: #13 EIF.TO
    Not sure what you mean by $1 everyday? I have a large holding in EIF which I first purchased in Sep 2009. I hold it in my non-registered account for dividends which I mainly reinvest back into other holdings but I’ve also spent some of the income in the past year. Can’t imagine selling it because of the massive capital gains hit I’d have to take…hence I pay little attention to the stock price or news on the company.

  17. Bernie Says:

    Kam,

    This spam link from Mike Swanson of the “Wall Street Window” popped up on my facebook page today. http://www.wallstreetwindow.com/2018/05/five-stock-charts-that-im-watching-today-mike-swanson-05-10-2018/

    Do you still follow him? I recall you posting a few of his “folksy” clips a few years ago.

  18. Ana Says:

    #14. Sandra,

    Have the flu, some lung infection again. Have no idea why I get these infections. I did mow the front and back lawn as well as raked up some old leaves and cones, last week so maybe it is a bit of mould.

    So did not trade today, just entered a position before the closing. Just following my charts.

    I see we have some cheerleaders for the market by some super duper bullish people. Good luck boys!

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