Tech Talk for Friday June 1st 2018

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Pre-opening Comments for Friday June 1st

U.S. equity index futures were higher this morning. S&P 500 futures were up 11 points in pre-opening trade.

Index futures were virtually unchanged following release of the U.S. May Employment Report at 8:30 AM EDT. Consensus for May Non-farm Payrolls was 185,000 versus upwardly revised 159,000 in April. Actual was 223,000. Consensus for May Unemployment Rate was unchanged from April at 3.9%. Actual was 3.8%. Consensus for May Hourly Earnings was an increase of 0.3% versus a gain of 0.1% in April. Actual was.an increase of 0.3%.

Abercrombie & Fitch added $1.44 to $25.00 after reporting higher than consensus first quarter revenues.

Lululemon advanced $7.55 to $112.60 after Stifel Nicolaus, MKM Partners, Susquehanna and Wells Fargo raised their target price on the stock.

Advanced Micro Devices gained $1.00 to $187.87 after Stifel Nicolaus raised its target price on the stock to $17 from $14.

EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/05/31/stock-market-outlook-for-june-1-2018/

Note seasonality charts on Non-farm Payrolls, Initial Jobless Claims, Canada GDP, Crude Oil Days of Supply, Gasoline Days of Supply and Crude Oil.

Don Vialoux on Wolf on Bay Street

Listen to Radio 640 at 7:00 AM EDT tomorrow (Saturday). Topics include TSX Composite Index (seasonal, technical and fundamental outlook), gold and gold stocks.

 

Observations

The Canadian Dollar moved lower on announcement of U.S. tariffs on Canadian steel and aluminum.

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Natural gas prices added $0.07 to $2.95 per MBtu on a lower than consensus weekly inventory report: Impact of a partial shut- down of Gulf of Mexico production due to the first tropical storm of the season. Forecasters are calling for a busier than average Hurricane season this summer. Inventory levels already are well below average for this time of year. Seasonal influences for natural gas prices are positive until at least mid-June.

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Mexican equities and related ETF extend losses following news of U.S. tariffs.

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StockTwits Released Yesterday @EquityClock

Canada GDP up a mere 0.1% (NSA) in the first quarter, half of percent below average.

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Technical action by S&P 500 stocks to 12:30: Bearish. Intermediate breakouts: $GM $ADI. Breakdowns: $DISH $DG $DISCA $DLTR $NWL $WHR $XRAY

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Linamar $LNR.CA moved below $64.86 extending an intermediate downtrend. Trade/ NAFTA victim?

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for May 31st 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Commodities Trends for May 31st 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Sector Trends for May 31st 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

S&P 500 Momentum Barometer

The Barometer fell 8.80 to 54.00 yesterday. Once again, it dropped to intermediate neutral from overbought. Short term evidence of an intermediate peak continues to build.

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TSX Momentum Barometer

The Barometer dropped 2.49 to 69.71 yesterday. It remains intermediate overbought and continued to show signs of rolling over.

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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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9 Responses to “Tech Talk for Friday June 1st 2018”

  1. Larry/ON Says:

    QQQ – Definite breakthrough resistance now that I was speculating on yesterday heading to the 174.45-175 level. We just need to see this follow through to the overall market with the SP500 breaking 2742. Tech is leading the way forward and financials are getting up off the mat.

  2. KC Says:

    Hello.

    Seems like T.TO is holding on fairly well to this 45.50 price point. Moving sideways and seems like buyers n sellers cant decide which way to take it within that tight triangle pattern ?

    Is anyone confidently holding this for dividend or are you looking at exiting ?

    Thanks,
    KC

  3. Larry/ON Says:

    Market Strength – This is very interesting in the context of yesterday’s “trade war” gloom. When the market goes up despite what would seem to be quite negative news that is a great sign.

  4. Ken Says:

    Larry/ON

    What do you think of SMH compared to SOXX? SMH has a tighter spread, higher volume and cheaper. XLU broke it 30 min uptrend so looks like its risk on for now… TIA

  5. Larry/ON Says:

    Ken from what you describe you would go with SMH if you are doing heavy trading. I just engage in swing trades now. I am guessing the SP500 will eventually break resistance within the next couple of trading days. I’m an optimist. The US economy is charging ahead with confirmation by the latest jobs report. 904,000 new full-time jobs in the past month.

  6. Scot Srodes Says:

    #3
    “Don’t confuse brains with a bull market”. The primary fuel for the market is foreign capital flows looking for a safer haven. Real employment is just as anemic as wage growth and the participation rate. Low paying jobs is not the solution, and relying on the jobs #, inflation, or any govt stat is meaningless. http://market-ticker.org/akcs-www?post=233577

    The global economic reset, which will occur by 2021 and will be the result of rising interest rates and a higher dollar, will migrate from the periphery to core (US dollar). While the US economy is the best horse in the glue factor, deficit spending and consumer costs rising faster than incomes, has its limits, as the surfs can only take so much govt largess. Govt pensions vs. tax payers is the next source of civil unrest. As the exodus of people and businesses from IL, NJ, CA, etc demonstrates, pensioners will loose.

    That was a long-winded way of saying stocks do not reflect economic strength. Tariffs and rising rates hurt the periphery worse than the US, which will send more fear capital into dollar-based assets, which exacerbates the problem for foreigners holding dollar-based debt.

  7. Larry/ON Says:

    Market Strength – David Burrows repeating what I said above: “When markets don’t react as you would expect given bad news flow, the positives under the surface are offsetting the headlines. Listen to the market’s message. Leading stocks, sectors and indices are bucking the twitter feed. Breadth data supports summer rally time.”

  8. Kam Says:

    Just saw this Salt on the wounds news:-

    Horizons ETFs Management (Canada) Inc. (the “Manager”) announced today that it will be terminating the BetaPro S&P 500 VIX Short-Term Futures™ 2X Daily Bull ETF (HVU) and the BetaPro S&P 500 VIX Short-Term Futures™ Daily Inverse ETF (HVI) (collectively, the “ETFs”) effective at the close of business on Monday, June 11, 2018 (the “Termination Date”

    Only options for traders are then in USD etf’s.

  9. Bernie Says:

    Interesting article:
    “This investor rivals Warren Buffett — and you probably haven’t heard of him”
    https://www.marketwatch.com/story/this-investor-rivals-warren-buffett-and-you-probably-havent-heard-of-him-2018-05-30

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