Tech Talk for Wednesday May 23rd 2018

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Pre-opening Comments for Wednesday May 23rd

U.S. equity index futures moved lower this morning. S&P 500 futures were down 16 points in pre-opening trade. Futures are responding to concerns that the U.S./North Korean talks will not take place. In addition, trade negotiations with China have become uncertain.

Canadian Imperial Bank of Commerce (CM $116.86 Cdn) is expected to open higher after reporting higher than consensus fiscal second quarter earnings.

Celgene added $0.61 to $77.22 after Bernstein upgraded the stock to Outperform.

Lowe’s gained $2.75 to $88.50 after issuing a positive outlook.

Tiffany added $15.26 to $117.50 after issuing positive earnings guidance.

EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/05/22/stock-market-outlook-for-may-23-2018/

Note seasonality charts on Crude Oil, U.S. Energy sector and the TSX Composite Index

Observation

Higher natural gas prices led the Commodity sector on the upside yesterday.

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Scary chart! Short term technicals suggest that the U.S. economy has not reached a credit cycle peak yet, but a peak is on the horizon. Stay tuned

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Source: www.haver.com, www.gluskinsheff.com, www.mauldineconomics.com

StockTwits released yesterday @EquityClock

Technical action by S&P 500 stocks to 10:15: Quietly bullish. Intermediate breakouts: $NFX $SYF $ESRX. No breakdowns.

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Editor’s note: After 10:15 AM EDT, breakouts included KIM, DO, AXP, COL and BEN. Break down: LUV

TSX Financials iShares $XFN.CA moved above intermediate resistance at $38.24

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Regional Banking SPDRs $KRE moved above $65.12 to an all-time high extending an intermediate uptrend.

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Toronto Dominion Bank $TD.CA, a TSX 60 stock moved above $75.53 to an all-time high extending an intermediate uptrend.

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CAE Inc. $CAE.CA moved above $25.13 to an all-time high extending an intermediate uptrend.

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Bonavista Energy $BNP.CA, a “gassy” stock moved above $1.74 extending an intermediate uptrend on higher natural gas prices.

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American Express $AXP, a Dow Jones Industrial stock moved above $102.96 to an all-time high extending an intermediate uptrend.

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Eldorado Gold $ELD.CA $EGO moved above $1.33 Cdn. extending an intermediate uptrend.

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Nice pop in natural gas prices today, up $0.09 per MBtu! $UNG $NATGAS. ‘Tis the season for strength to mid-June.

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for May 22nd 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Commodities Trends for May 22nd 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Sector Trends for May 22nd 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Keith Richards’ Blog

Keith talks about gold. See link:

http://www.valuetrend.ca/gold-breaks-1300-a-buying-opportunity/

Editor’s Note: Seasonality study shows that likely timing to enter the trade is late July. Stay tuned!

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S&P 500 Momentum Barometer

The Barometer slipped 1.20 to 62.20 yesterday. It remains intermediate overbought.

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TSX Composite Momentum Barometer

The Barometer eased 0.82 to 71.19 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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17 Responses to “Tech Talk for Wednesday May 23rd 2018”

  1. dave/ab Says:

    Interesting piece for those who hold MU

    https://www.cnbc.com/2018/05/23/microns-up-43-percent-this-year-and-has-more-room-to-run-strategist.html

  2. Sandra Says:

    Kam,did you read my comments from last night.
    MU is pulling back today. Let us see if your wave support holds.

    Also, posted a link to an interesting read the other side re: MU

  3. Ron/BC Says:

    Sandra
    I haven’t read any of the MU posts as yesterday that’s what this blog was all about. I’m not big on “stock stories” so don’t generally spend much time on them. But with an entire blog devoted to MU that tends to be bad news for the price of the stock for awhile. And price is still over $5 below the March price as well. A pullback to the April high of $54.27 or even to the short uptrendline at $47.50 would be typical price action. Presently price is trading at the lows of the day with a gap just below. Good luck to those that own it……..

    http://stockcharts.com/h-sc/ui?s=MU&p=D&yr=2&mn=6&dy=0&id=p66064655884&a=595974216

  4. Ana Says:

    $MU

    Stock pumping like I have never seen before on this forum yesterday.

    I really hope that no one bought in with all of the “it is going to the moon” conversations.

    Looking like the next stop is 55.00

    Larry, when you say,

    “Larry/ON Says:
    May 22nd, 2018 at 1:59 pm

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

    You realize that you do not make money unless you sell. Did you sell?

    Kam, this might have been the end of wave (v).

  5. Ron/BC Says:

    The $SPX bumped up against the Fibonacci 61.8% retracment level and price resistance again yesterday at 2740 and stopped in its tracks. The widely watched 2717 has been barely cleared with very low volume (see bottom of chart) and can’t remain above this level. Price once again is below this level with little conviction to blow through it to next resistance of 2800. Not much to cheer about. Looks more like a market that would prefer to test support again than one that wants to rally substantially. A test of the top of the downtrendline would be typical. But as long as the 2585 lows hold as support I wouldn’t be too worried. This time of year doesn’t tend to be rip roaring as a rule so perhaps a sideways consolidation is next. But price is not acting like a market that wants to rally.

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

  6. Ron/BC Says:

    Re:#5
    Watch the long term 50,200,1 Modified MACD that has been rising and is presently touching its 20ema. “IF” you see that indicator start to ‘frown’ and roll over and not curl up then look out below.

  7. Sandra Says:

    Ron/BC, Ana:
    I agree yesterday was all about MU. Ana, I agree with you don’t make money until you sell. I read lot of news and articles about MU. Some so bullish as if there is no risk at all even though memory chips are cyclical business and there can be boom or bust. And as if there will be no downturn and it will only go up. Others argue MU’s sense in selling stock at low price few months ago and now buying back in its best period at a higher price as they see lot of growth in future. And they arque about how MU gets its forecast wrong. So you really have to follow the chart and not the herd. I sold and bought twice. Right now I am looking to buy again. Waiting for 55 after closing the gap down.
    Appreciate your posts!

  8. Bernie Says:

    Ana et al,

    Re: #4 “You realize that you do not make money unless you sell.”

    You could also say you don’t lose money unless you sell. Income, however, is different. You only receive (dividend) income while holding. It ends if you sell.

  9. Sandra Says:

    Ron/BC:
    When you get a chance could you look at ECA.TO. When is it going to breakout?? Having hard time reaching/breaking $18.
    Thanks!

  10. dutchcanuck Says:

    Bernie #8
    So says The Wicked Wizard of the West. I could not agree with him more(lol).

  11. Kam Says:

    Ana,

    re-MU,

    I am not part of that stock pumping in here. I saw people posting and even Wayne talking about it so I pulled my Protractor and posted some targets and don’t even know if someone looked at the calculations which have worked so far but I put it out in case someone might.

    I agree that this thing might not have much to run or don’t know how much it can run but I will stick with my $63.27 target if it stays above 57.51.I am not playing it anymore.

    Sandra just wrote that company sold stock when it was lower and now buying back higher. Just because they are management doesn’t mean they know all. That make them no better than so called dumb money and sometimes when business is best and you are doing all time great, that is where the stock swoons.

  12. Larry/ON Says:

    NFLX – Nice pop to a new high. , MSFT – New High — Not bad. I will refrain from further “stock pumping” about a certain semi-conductor. My comments will now be limited.

  13. Ken Says:

    Kam, you mentioned KL as a strong gold stock this week, another one is TGZ.TO with decent volume. Will be buying the dips to the 20 EMA.

  14. Sandra Says:

    Re: 4, 11, 12,

    Larry, you introduced us to “that” stock (hehe!!). If you had not written those posts I would have not looked into it.
    Kam, your wave theory was not bad at all.
    Ana, I don’t know how you figure out those ranges..
    Ron’s charts: always a piece of Art.

    Can’t mention everyone but so many other’s : always ready to guide you, give their input or feedback.

    So everyone keep on posting, we all learn something from each other. Since no one can keep up with so many choices it is always good when everyone mentions different stocks here. Follow or not to follow is our choice.

    We are a great bunch. 🙂

  15. Ron/BC Says:

    Sandra
    Re:#14
    That reminds me of a “story” I heard. A stranger rode into town and pulled out a round stone and asked a lady there if she had ever had stone soup. Well she didn’t of course so he said if she had a pot with some water in it and put it over a fire he’d show her and everyone else how great it was. The lady did that and said it needed more than just the stone so he said put in whatever you think best and she did. Another town folk said it needed carrots so he said go ahead and throw that in too. Someone else said it needed a soup bone and some potatoes so he ok’d that as well. One after the other they all added something to the pot and when it was all cooked up they all tasted it and to everyone’s satisfaction all agreed it was the best stone soup they’d ever tasted.

    All we do here is make stock soup and it is just as good as the stone soup.

  16. Ron/BC Says:

    Sandra
    Here is ECA.to and yes $18 is still resistance and must be cleared to expect higher prices. Note the lower arrows that track the 50,200,1 Modified MACD trend indicator. It is always best to take the signal at trend changes rather well after the signal.

    http://stockcharts.com/h-sc/ui?s=ECA.TO&p=D&yr=2&mn=6&dy=0&id=p48430870213&a=579408566

  17. Sandra Says:

    Ron/BC:

    Love your story and the stock soup we make everyday! Hehehe!! God bless everyone.

    And bless you for being ever ready to share charts.Yes, can’t wait ECA. to get over the hump.

    Have a nice evening and talk to u all tomorrow.

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