Tech Talk for Tuesday June 12th 2018

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Pre-opening Comments for Tuesday June 12th

U.S. equity index futures were mixed this morning. S&P 500 futures were unchanged in pre-opening trade.

Index futures were virtually unchanged following release of the U.S. May Consumer Price Index. Consensus was an increase of 0.2% versus a gain of 0.2% in April. Actual was an increase of 0.2%. Excluding food and energy, consensus for the Index was an increase of 0.2% versus a gain of 0.1% in April. Actual was an increase of 0.2%.

The Canadian Dollar slipped another 0.12 to 76.89 after political rhetoric against Canada was ramped up by President Trump during an overnight press conference.

Twitter gained after JP Morgan raised its target price to $50 from $39.

American Eagle Outfitters added after JP Morgan raised its target price to $22 from $19.

EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/06/11/stock-market-outlook-for-june-12-2018/ Note “Grave stone doji on the S&P 500 Index” comment.

Observations

Shanghai Composite Index touched a 13 month low yesterday.

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Grain prices remain under technical pressure.

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Media ETF soars to an all-time high in anticipation of consolidation in the industry. News comes after the close to day.

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StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Bullish. Intermediate breakouts: $EL $TSN $AMP $IR $NLSN $IR $NLSN $SRE $CI $KEY $FLR. No breakdowns.

Editor’s Note : After 10:00 AM EDT, breakouts included SIVB, HII, AET, ETN, GGP, HUM, HSIC, KHC, BMY, DLPH, APA, ANSS and PKG. Breakdowns: FE, AEE

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Suncor $SU.CA, a TSX 60 stock moved above $53.06 to a 10 year high extending an intermediate uptrend.

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Agriculture ETF $MOO moved above $64.49 extending an intermediate uptrend. Surprising given the drop in grain prices!

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Pharmaceutical ETF $PPH moved above $60.46 extending an intermediate uptrend.

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BCE $BCE.CA, a TSX 60 stock moved above $55.19 completing a double bottom pattern.

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‘Tis the season for BCE to move higher to mid-September!

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for June 11th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Commodities Trends for June 11th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Sector Trends for June 11th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

S&P 500 Momentum Barometer

The Barometer added another 2.20 to 74.80 yesterday. It remains intermediate overbought.

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TSX Momentum Barometer

The Barometer was unchanged yesterday at 69.58. It remains intermediate overbought and showing 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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8 Responses to “Tech Talk for Tuesday June 12th 2018”

  1. Larry/ON Says:

    Grinding Higher – US market continues higher in the face of “trade war” fears. Why aren’t there panicked investors looking for the exit?
    GOOGL – Pennant formation.
    SP500 – Close to resistance at 2800. Give it a couple of days.

  2. KC Says:

    Hello Ron/BC,

    Not sure if you are around or busy moving. If you are not too busy, I’d love to hear your TA on SAP.TO please. Seems to be getting close to a buy opportunity. Do you think the whole US trade fiasco will have any dire effects on Saputo with regard to the dairy products side – is there more downside ?

    Does this look right ? http://schrts.co/yTdULU

    Anyone else here a holder of or watching Saputo for a buy ?

    Thanks,
    KC

  3. dutchcanuck Says:

    Photon Control PHO.TO has been on a tear lately. Moved from the Vancouver to Toronto Stock Exchange. Great little Can tech co making measurement components for chip/wafer manufacturers.
    Congrats to those who own it. That incl you Neil/AB.

  4. Mary Says:

    Larry/ON
    Re #1 … Do you think the market will soon have a pull back. It looks like a one directional market. Unstoppable! I sold some stocks last week only to see it run higher.
    Appreciate your thoughts.

  5. Larry/ON Says:

    Re: 4 – Mary – It continues higher until you see clear evidence that the market is topping out. SP500 is not technically overbought. The real test will be when it gets to 2875. I would get a little more cautious when we get to late July as Don V is pointing out but in recent years we have had tops going into August or early September. Overall this is a very strong bull market. The push is always to the upside in the face of negative news. Fundamentally the market is not overpriced, earnings growing, economic growth is good. When the technicals get over extended someone like RON/BC would be good to post about it. I wouldn’t worry at the moment.

  6. Larry/ON Says:

    Further to #5 “In a bear market the most important skill is to be a good seller. The hardest thing in a bull market is to stay with your winners.” – D. Burrows

  7. mary Says:

    Larry/ON

    Thanks for your response. I may have to buy back at a higher price, atleast half the number of shares. I am not good at placing stop loss and fearful of giving back my gains. I need to be a more disciplined investor. #6 just summed it up correctly.

  8. Bernie Says:

    Ron/BC,

    Sorry, I didn’t reply earlier to your comment made to me late Sunday.

    Re: BNN Analysts.
    Some of the guest analysts they have on BNN are better than others but I don’t think anyone here blindly follows them. I know I sure don’t. I watch mainly to get ideas that I do further research on, mostly on stock picks I hadn’t heard of or on stocks favoured by multiple guests. Very few of the guests are knowledgeable with dividend growth stocks. Actually, I find very few financial planners even understand dividend growth investing. I tend not to watch the shows which feature ETFs or options strategies. Options have never interested me and I find ETFs & mutual funds very easy to do my own research on.

    As you know I’ve parked my DGI focus for now and am mostly invested in Mawer funds. I’m an older guy now who doesn’t have an ultra long investing time frame anymore and investing in dividend stocks in a rising rate environment is a whole new ball of wax to me. I didn’t experience any dividend cuts but I was rather shocked last year when my DGR shrunk to 8.6% and my total return was only 1/2 of what the TSX performed and was only 1/3 of what SPY returned in $CAD. My DGI portfolio, heavy in utilites, just wasn’t playing defence anymore. I decided to get out during the Feb fall and go with plan B (Mawer funds) until further notice. The move has been kind to me. I’m now slightly up on the year. Had I hung on I’d be underwater about 5%. I don’t suggest other investors do what I did, especially the younger ones who have many investing years ahead of them. If I were younger and/or not concerned with leaving a legacy I would have had no problem what-so-ever with staying the course…except for maybe diversifying a bit out of my utility holdings. My plan B isn’t written in stone either. I may go back to DGI at a later date should dividend stocks look more favourable again.

    Getting back to your comment, I find the use of a trend indicator, like your modified MACD to determine when to enter, hold and exit the excellent Mawer funds a great idea! While I prefer ultra-easy strategies like buy and hold dividend growth stocks for income your suggestion is easy to follow as well. I’d love to “marry” my holdings but I fully understand that its probably in my best interest to exit and go to cash when the signals suggest it. I’ve been monitoring my barcharts for this purpose. In hindsite I should have made this exercise even easier by going with a single fund like Mawer Global Equity or Mawer Balanced Fund. Thank you kindly for your TA help for the “indicator” and for all your other suggestions over the years. You haven’t been on here much lately. I imagine you’re busy with your move these days.

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