Tech Talk for Tuesday May 22nd 2018

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Pre-opening Comments for Tuesday May 22nd

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

Micron jumped $3.24 to $58.72 after announcing a $10 billion share buyback program. The company also announced an arrangement to provide specialty chips to Intel.

Adobe (ADBE $238.10) is expected to open higher after announcing an $8 billion extension to its share buyback program.

Macy’s added $0.82 to $35.43 after Susquehanna upgraded the stock to Positive from Neutral. Target price was raised to $43 from $25.

Kohl’s advanced $3.33 to $68.80 after reporting higher than consensus first quarter earnings. The company also raised its guidance.

EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/05/19/stock-market-outlook-for-may-22-2018/

Note seasonality charts on Canada CPI, Canada Retail Trade and Live Cattle Futures.

Observation

Southern European equity markets (e.g. Turkey, Greece, Italy) are under technical pressure. Yesterday, the Greek ETF moved below $9.42 extending an intermediate downtrend.

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StockTwits Released Yesterday @EquityClock

Fertilizer ETF $SOIL moved above $10.76 extending an intermediate uptrend.

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Vietnam ETF $VNM moved below $17.36 extending an intermediate downtrend.

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Mid-cap SPDRs $MDY moved above $356.23 extending an intermediate uptrend.

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Transportation iShares $IYT moved above $195.00 and 4195.22 extending an intermediate uptrend.

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Technical action by S&P 500 stocks to 10:00: Quietly mixed. Intermediate breakouts: $EMR $UTX. Breakdown: $BXP.

Editor’s Note: After 10:00 AM EDT, intermediate breakouts included HON, HCA, RRC and JNPR. Breakdown: STZ

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U.S. Healthcare Providers ETF $IHF moved above $172.72 to an all-time high extending an intermediate uptrend

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Materials SPDRs $XLB moved above $60.25 setting new intermediate uptrend.

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for May 21st 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Commodities Trends for May 21st 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Sector Trends for May 21st 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Support for a worthy charity

Tech Talk supports our friend, Michael Campbell in Vancouver. In addition to hosting the weekly Money Talks radio show on Saturday mornings, Michael also is a leading organizer and supporter for Special Olympics. Following is his appeal …

 


Dear       ,
You’re probably busy but please take 3 minutes to read this email. I promise to get right to the point.  
I need your help raising money for Special Olympics. Specifically I am looking for auction items for the Special Olympics annual golf tournament on June 28th – the Goldcorp Invitational.  In addition, as chairman of the tournament I still need to find five $1,500 tee sponsors. (Tax deductible – so the net cost is more like $750.)  Come to think of it – that’s not much to be in my good books forever.
If you’re still reading, allow me to elaborate.
I’m old fashioned.  I think people should do a lot more than talk a good game.  I think they should actually “do” something.  As I said, that’s an old fashioned attitude in a world where “virtue signaling” is all the rage.
I’ve been involved with Special Olympics since I had a nice blond/brown head of hair….about 1931. Okay, not quite but it’s a long time. The reason is straightforward. People with intellectual disabilities are too often the forgotten members of our communities – and that’s unacceptable to me.  Special Olympics changes that by providing programs that end isolation for literally thousands of people from as young as 2 to as old as 80 and creating a bridge to the community at large.
I’ve found volunteering for Special Olympics incredibly rewarding because of the direct impact.  Literally the more money we raise – the more individuals who can participate in programs like Active Start, which teaches motor skills for kids as young as two.
It means an extra child can get essential medical screening in our Healthy Athlete program. People with intellectual disabilities have a 40% higher risk for health issues, and just as important, only one in 50 primary care physicians have received clinical training that qualifies them to treat people with intellectual disabilities

Most of our athletes are not able to advocate for themselves when it comes to health program screens participants in a variety of areas including vision, dental, nutrition and physical therapy. The results to date have been incredible, and life saving in at least one instance I’m personally aware of where gum cancer was detected. 
I could go on about the many Special O programs that directly improve the lives of our athletes – and would be happy at any time to elaborate – but I think you get the picture. So the question is – can you help? Do you know people who might be willing to donate items, a recreational activity, their travel points – any good or service that would be popular in a charity auction? Or if you would like to make a personal donation you can do that directly by
CLICKING HERE.
Or maybe you or someone you know would be willing to buy a $1,500 tee sponsorship. If they do I can promise to make it my business to let the world know of their generosity and commitment to our community.
I should finish by telling you that looking for opportunities to help Special Olympics is a huge reason I continue to do MoneyTalks. That’s why I’m reaching out to you and hope you’ll be able to help.
I understand all the demands made upon us – but I also understand that one of the best foundations of financial success comes from lending a hand to others.
Thanks for taking the time to read this.


Mike

PS If you can help with the golf tournament auction or sponsorships, or would like more information, please let me know by responding to this email. Grant or Mark from my office will follow up with you directly.

Copyright ©2018 High Performance Communications Inc., All rights reserved.

Our mailing address is:
High Performance Communications Inc.
Suite 200, 100 Park Royal 
West Vancouver, BC V7T 1A2


S&P 500 Momentum Barometer

The Barometer added 5.60 to 63.40 yesterday. It returned to the intermediate overbought level from the intermediate neutral level.

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TSX Momentum Barometer

The Barometer was unchanged yesterday at 72.02. 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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47 Responses to “Tech Talk for Tuesday May 22nd 2018”

  1. Larry/ON Says:

    MU – Announced $10 Billion buyback program representing 16% of shares outstanding. It will probably amount to less than 10% of shares after the share price rise.

  2. FishFat Says:

    Crude Oil, WTIC
    After breaking-out of a Symmetrical Triangle chart pattern in mid-March, WTIC has now formed a rising wedge pattern. Rising wedge chart patterns can break-out to the upside, but most often are bearish. A breakdown of the lower wedge boundary would suggest a pullback to the base of the wedge. There is support at $66.85 and $61.81.

    http://schrts.co/565M57

  3. Sandra Says:

    Larry/ON:
    MU: Wise to take profit or hold..such a big gap up

  4. Larry/ON Says:

    Sandra – Add 16% to yesterday’s close. I would not sell before that point.

  5. Sandra Says:

    Larry/ON:
    59.98 might be high for the day. In range 59.98 and 59.43.

  6. Larry/ON Says:

    Thanks Sandra. I did one sell and buy back this morning. IMO this is a stock that should hit $75-80 given time.

    SP500 – Breaking out. I recommend a watch of Cameron Hurst on BNN video this morning. He sums up what is going on in the market and is quite positive.

  7. Larry/ON Says:

    SHOP – Anyone who follows it have thoughts on the Adobe purchase of Magento to create some kind of e-commerce competition? Is this a mole-hill or something that is really going to cut the legs out from under the stock. Citron is already beating the drum.

  8. Sandra Says:

    Larry/ON:
    I too sold. What a joy to trade share like this! Thanks for introducing it. Will re-buy. Has broken 59 . Trying to be patient and not jump in to avoid bull trap.

  9. Sandra Says:

    Does anyone recommend Square?

  10. Ana Says:

    #3. Sandra
    Sandra, great decision to take profit. I hope you followed through with this.

    #6. Larry/ON
    “SP500 – Breaking out.”
    Check your indicators again, Larry.

  11. Ron/BC Says:

    The $SPX has bounced back to the Fibonacci 61.8% retracement level of 2740 once again. This price point needs to be cleared and held to expect a run up to 2800.

    http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=5&dy=0&id=p24240906356&a=582707024

  12. Sandra Says:

    Ana: #10
    Thanks for asking. You confirmed my thinking was on right track. I did take profit. But it is back where I got off. LOl!
    Waiting to get back in. So over bought in short time frame.

  13. Larry/ON Says:

    Ana – I got too optimistic on SP500 this morning. I should have put a question mark on my post Breakout has to come sooner or later

  14. Sandra Says:

    I am grateful that there are people on this forum to keep us in check. 🙂

  15. Larry/ON Says:

    Re 12. -Sandra – If your longer term plan is to hold some shares until reaching a higher target, beware trading yourself out of a stock and then be faced with a decision to buy back in at a higher price. I allocate a large majority portion I won’t touch and do smaller day trades with the rest and I try to keep the distance between my buy and sell points narrow enough that I am sure I can end the day with all my shares that I started with. I buy additional shares with my day profits.

  16. Sandra Says:

    Larry/ON:
    Great advise. How do you keep track of gains (specially ACB) for tax purposes?

  17. Larry/ON Says:

    Sandra – My brokerage generates a gain/loss report for our open account and I just give everything to the accountant. You don’t want to have multiple non-registered accounts that have to be reconciled. That would be a lot of work.

  18. Rol Lew Says:

    Trading is a strange game.
    You buy a stock. It goes down, so you sell it. It goes up, so you sell it. There’s got to be a better plan.

    http://stockcharts.com/freecharts/candleglance.html?CVI,CVRR,HES,ANDV,PSX,WLL,CRZO,MU,TXN,STX,MCHP,WDC|C|

    https://seekingalpha.com/article/4176059-micron-time-breakout

  19. dutchcanuck Says:

    FF #2
    Nice chart. It’s also up against a major gap in 2014.

  20. Ana Says:

    The USA has enough material for five more Monte Python Movies with Trump.

  21. Sandra Says:

    Ana:
    That is material for Obamas’ to make movies/shows for Netflix. Hehe!!

  22. Sandra Says:

    Rol Lew: #18

    Thanks for sharing the article. No wander MU does no want to pull back even though so over sold. NO one wants to sell.

  23. Ana Says:

    #21. Sandra,

    I saw that “deal” that they made with Netflix. Maybe that added to the insanity that Trump displayed this weekend. Nice “deal” Obamas!

  24. Larry/ON Says:

    MU could blow through $60. You really are taking an opportunity risk trying to trade. This is a no-brainer buy and hold. There is a pile of sell orders at $60 but what can happen is that they melt away when the the price gets to $60 and starts grinding at that pile and people move their limit orders higher.

  25. dutchcanuck Says:

    To all you MU fans.
    Brian Acker’s system has a model price of $165 on this stock.

  26. Larry/ON Says:

    MU – Volume is greatest in 6 weeks and the day is well from over.

  27. Larry/ON Says:

    MU – Thar she blows. Past $60.

  28. Sandra Says:

    MU:
    It just spiked !

  29. Larry/ON Says:

    I have never made so much in one day. I was all in.

  30. Sandra Says:

    Larry/ON: Good for you!

    MU holding up NASDAQ. It is ignoring all indicators all rules … in rally mode !

  31. Paula Says:

    dutchcanuck,
    A person would have to be a Brian Acker fan to believe that.

  32. Larry/ON Says:

    MU – I think that’s all for today. Probably settles back a bit below $60. It will have to grind through a congestion area between 60 and 63. Someone needs to draw a trend channel to look for the top of this rally which I am guessing will be high 60s.

  33. Vik Says:

    @ Rol Lew re: #18
    Great charts there, thanks for sharing! Really shows the beauty of staying in a trade with the trend. What type of scan did you use to identify them?

    Ideally, a pullback would be nice to enter.
    Looking at them with CCI, Stochastic, RSI and other momentum indicators shows that price can still grind higher even though indicators say price “should” pull back.

    Now, the trick is to identify when these trends start. I believe an entry could be when the faster MA cuts the slower one. Ex: 4 MA cutting above 9 MA

  34. Sandra Says:

    US Mkts look tired. Can cause profit taking.

  35. Sandra Says:

    MU: On daily chart H&S ? Can go upto 61.27 ?

  36. Sandra Says:

    Opps!I mean 61.72

  37. Sandra Says:

    Ron/BC:

    Wandering if I can use your ECA.TO settings for MU?

    ECA.TO you had said moves with histogram and it does that.

  38. Sandra Says:

    Kam, sorry to hear that you were out of MU yesterday.

    Lot of info. has been shared today so try to get in.
    It will go up in the long run. News is out which caused this rally some will take profits and bring price down a bit I am sure that will give you an opportunity to enter.

  39. Sandra Says:

    Sorry about hogging here today…

  40. Wayne Says:

    Larry/ON,
    Do you have your Series 7?? You certainly know your way around charts.
    MU is a hot item in the option blogs – got back in MU (54 6/15 calls) Monday near the close after the drop. Out after the double.
    Mu is gapping like crazy. Too risky at this level…..

    When did you get long??

  41. Sandra Says:

    MU broke $60 but I think will come down much lower giving an entry point.

  42. Larry/ON Says:

    Wayne – I’m what I would call a “meat and potatoes” trader with some basic technical knowledge who likes watching the tape and seeing behaviour that repeats. I don’t know my way around charts very well compared to a pile of others that post here. I like doing my fundamental research and having some conviction in what I buy.

  43. Larry/ON Says:

    Wayne – I started buying MU at $47 and kept adding. My average price is 52-53.

  44. Wayne Says:

    Larry/ON,
    Nice play Larry. No idea when this rocket is going to run out of fuel – a couple of option traders loaded up on Jan 2020 55.00 calls. Over 250 contracts traded today. They are expecting a run past $ 100.00 by the end of the year.

    “Watching the tape” reminds me of an incident a few years ago (May 2010). I was also watching the tape when there was a sudden acceleration to the downside. The market dropped almost 1,000 pts in a matter of seconds. I was in a chat group – they were shitting their pants as you were either long or short the Spoos…. nobody could trade. It lasted for 30 minutes. A couple of the members never returned.

  45. Kam Says:

    kam Says:
    May 21st, 2018 at 2:34 pm

    Sandra,

    MU is a tough and violent stock to trade. Gaps up and down every single day. However I am gonna try doing a wave count on it.

    It look like 3 waves down from ATH and if it is a 1-2 wave up then to IF which is big if it is in wave 3 then it has to hold $54.60 as wave ii. If it does and then move past 55.75 then it could be in a violent iii wave up and target is $60.33. Lets see.”

    That didn’t take long for the violent move to ‘iii’ wave target of $60.33, actually it past that by little, lol. I am not getting in here. Missed it as I didn’t know they were having some conference as I entered based on EW TA I did at that time and left. Oh well.

  46. Kam Says:

    MU,

    If the EWave on MU is working as is, Wave iv support is $58.78-$57.71 and shouldn’t drop past $57 to keep target intact. and then ‘v’th wave target is $63.27. Later

  47. Sandra Says:

    Kam, you were pretty close yesterday.
    Will watch the support 58.78-57.71.

    MU fans: What could derail Micron?
    Interesting perspective – https://www.nasdaq.com/article/microns-buyback-strategy-sell-low-and-buy-high-cm967348

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