Tech Talk for Thursday May 17th 2018

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Pre-opening Comments for Thursday May 17th

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

Index futures were virtually unchanged following release of economic news at 8:30 AM EDT. Consensus for Weekly Jobless Claims was 217,000 versus 211,000 last week. Actual was 222,000. Consensus for May Philly Fed Index was 22.0 versus 23.2 in April. Actual was.34.4

Cisco dropped $1.76 to $43.40 after reporting slightly lower than consensus fiscal third quarter revenues.

Molson Coors eased $1.06 to$59.06 after Stifel Nicolaus downgraded the stock to Hold from Buy.

JC Penney fell $0.36 to $2.71 after lowering guidance.

Wal-Mart added $1.42 to $87.55 after reporting higher than consensus first quarter results.

EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/05/16/stock-market-outlook-for-may-17-2018/

Note seasonality charts on Russell 2000 Index, U.S. Housing Starts, Home Building Industry, Industrial Production, Technology sector and Canadian Sales of Manufactured Goods.

Upcoming BNN Appearance:

Jon Vialoux will be on BNN’s Market Call Tonight at 6:00pm ET this Friday, May 18th taking your calls on Technical Analysis and Seasonal Investing.  CALL TOLL-FREE 1-855-326-6266,  EMAIL marketcall@bnnbloomberg.ca,  or TWEET @MarketCall  Be sure to send in your video questions for priority response on air.

 

Observations

More “Sell on News” late yesterday. Cisco, a Dow Jones Industrial stock dropped over 4% after the close despite reporting slightly higher than consensus fiscal third quarter earnings.

Oil service stocks on both sides of the border continue to move higher. Philadelphia Oil Services Index traded to a 12 month high on a move above 166.72.

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Retail merchandiser stocks are moving well this week when most of the major companies in the industry report first quarter results.

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Italian stocks and related ETFs tumbled following the election of a populist coalition.

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Israel iShares show improving technicals despite heightened Middle East conflict.

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StockTwits Released Yesterday @EquityClock

Nike $NKE, a Dow Jones Industrial stock moved above $68.78 and $70.04 extending an intermediate uptrend.

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Canada Manufacturing Sales up 14.2% (NSA) in March, better than 13.3% average gain for month #CDNecon #CAD $MACRO

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U.S. #Housing Starts up 9.4% (SNA) in April, better than 8.9% average gain of rmonth #Economy, $MACRO $ITB $XHB

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Coal ETF $KOL moved above $16.40 setting intermediate uptrend.

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Platinum ETN $PPLT moved below $84.97 extending an intermediate downtrend.

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Canfor $CFP.CA moved above $32.00 extending an intermediate uptrend.

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Technical action by S&P 500 stocks to 10:00: Bullish. Intermediate breakouts: $CMG $KSS $MAT $NKE $TGT $TROW $MU $IP. Breakdown: $MHK.

Editor’s Note: After 10:00 AM EDT, breakouts included WHR, MUR, GE, PKG and GPC. Breakdown: MAA

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Solar ETF $TAN moved above $26.70 to a 29 month high extending an intermediate uptrend.

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U.S. Metals & Mining SPDRs $XME moved above $37.44 setting an intermediate uptrend. Triggered by strength in coal stocks $KOL

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General Electric $GE, a Dow Jones Industrial stock completed a Reverse Head & Shoulders pattern on a move above $15.05.

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Cdn. National Railway $CNR.CA $CNI, a TSX 60 stock moved above $105.69 to an 11 month high extending an intermediate uptrend.

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Canadian energy stocks continue to move higher. Tourmaline $TOU.CA moved above $24.86 extending an intermediate uptrend.

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Metro $MRU.CA, a TSX 60 stock moved above $42.47 extending an intermediate uptrend.

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Russell 2000 Index $RUT moved above $1615.52 to an all-time high extending an intermediate uptrend.

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Gasoline production jumping to the highest level of the year ahead of the unofficial start to driving season. $UGA $USO $XLE

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US Industrial Production down 0.8% (NSA) in April, better than the 1.6% decline that is average for month. #Manufacturing #Economy $MACRO

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for May 16th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Commodities Trends for May 16th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Sector Trends for May 16th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

S&P 500 Momentum Barometer

The Barometer added 3.00 to 58.40 yesterday. It remains intermediate neutral.

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TSX Momentum Barometer

The Barometer added 1.23 to 68.72 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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11 Responses to “Tech Talk for Thursday May 17th 2018”

  1. Paula Says:

    Ron/BC,
    Thanks for the comments and updated chart on BCE.TO last night. With a current yield of 5.6% and set to go X-div on Jun 14th, it seems unlikely to pull back to 53 again any time soon. Perhaps the rising rate news is already built in to the current price. I don’t follow T.to or FTS.to but appreciate the comparison.

  2. Ron/BC Says:

    Paula
    Here is BCE on the NYSE. So no CD$ influence on the price trend. BCE is still having lower highs and lower lows and continues its downtrend. Note the major Utility ETF:XLU overlaid and how close they track each other. So where Utilities go so will BCE regardless. Technically price needs to break above that downtrendline to end this consistent decline. Then price needs to stop having lower lows and start clearing previous high points to at least suggest consolidation. The RSI 8 signals tend to work well in uptrends and sideways trends but just signal brief dead cat bounces in downtrends. The lower trend indicators are improving somewhat, but price is king and price needs to stop hiking down the mountain and start hiking back up again. T.to and FTS.to are also interest sensitive Utilities and T.to had been outperforming most of these Utility stocks. The Dividend investors tend to gravitate to these stocks.

    http://stockcharts.com/h-sc/ui?s=BCE&p=D&yr=2&mn=0&dy=0&id=p65351835048&a=579408663

  3. Bernie Says:

    On a more fundamental note:
    http://www.dividendgrowthinvestingandretirement.com/2018/05/screening-canadian-market-1-dividend-growth-utility-stock-spreadsheet-included/

  4. Bernie Says:

    Re: #2
    The linked article was authored by the fellow who maintains the Canadian Dividend All-Star List.

  5. Bernie Says:

    I meant Re: #3

  6. Ron/BC Says:

    The $SPX continues to spin its wheels at and just above 2717 without blowing through that well watched resistance level. Price had better move through this level soon with some volume and buying power or the short sellers are going to overwhelm the reluctant bulls who presently lack conviction.

    http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=2&mn=6&dy=0&id=p42448422942&a=579408698

  7. Rol Lew Says:

    MU – 55 Call – expiring tomorrow

    http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=MUE18184550000&insttype=&freq=1&show=&time=4

    MU – 55 Call – expiring Jan 2019
    http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=MUA18194550000&insttype=&freq=1&show=&time=4

    same….
    http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=MUA18194550000&insttype=&freq=1&show=&time=6

    Is there a rhyme or a reason for the rips & dips? 🙂 that’s asking for too much

  8. Larry/ON Says:

    MU – The pull-back was back to the 4 day MA which is 54.64. Filled in the gap that was discussed yesterday. Great volatility if you are a good trader. I would like to see the SOXX index move decisively higher as well as the overall market. We need to see stocks like NVDA and TXN move. INTC and NVDA are making a go of it.

  9. Sandra Says:

    MU giving a buying opportunity. Looks like it will re-test 52-53.

  10. Sandra Says:

    Larry/ON :
    What is the reason for pullback?

  11. Paula Says:

    Ron/BC,
    Thanks for reminding me to check BCE on the NYSE. I do usually do that with interlisted stocks. And you are right, the downtrend is still in place.

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