Tech Talk for Wednesday July 11th 2018

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Pre-opening Comments for Wednesday July 11th

U.S. equity index futures were lower this morning. S&P 500 futures were down 14 points in pre-opening trade. Futures are responding to the Trump Administration’s announcement that it will seek a 10% tariff in two months on Chinese goods valued at $200 billion.

Futures were virtually unchanged following release of the June Producer Price Index. Consensus was an increase of 0.3% versus a gain of 0.5% in May. Actual was an increase of 0.3%. Excluding food and energy, consensus for the June Producer Price Index was an increase of 0.2% versus a gain of 0.3% in May. Actual was an increase of 0.3%.

The Canadian Dollar was steady at U.S. 76.02 cents prior to the Bank of Canada’s announcement on the Overnight Lending Rate at 10:00 AM EDT. Consensus is that the Bank of Canada will increase the rate by 0.25% to 1.50%.

JP Morgan raised its target prices on U.S. railway stocks. Target on Norfolk Southern (NSC $158.71) was increased to $170 from $157. Target on Union Pacific (UNP $144.11) was raised to $170 from$157. Target on CSX (CSX $66.05) was advanced to $75 from $65.

Restaurant Brands (QSR $81.11 Cdn) is expected to open higher after announcing a joint venture agreement to open 1500 Tim Horton franchises in China.

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Deere dropped $2.83 to $141.72 after JP Morgan lowered its target price to $154 from $170.

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Stifel Nicolaus raised its target price on Netflix (NFLX $412.60) to $406 from $345.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/07/10/stock-market-outlook-for-july-11-2018/

Note seasonality charts on the Consumer Staples sector, U.S. Financials sector, Copper Futures and the Dow Jones Transportation Average.

StockTwits Released Yesterday @EquityClock

ExxonMobil $XOM, a Dow Jones Industrial stock moved above $83.79 extending an intermediate uptrend.

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Oil & Gas Exploration SPDRs $XOP moved above $44.67 extending an intermediate uptrend.

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U.S. energy sector leading U.S. stocks higher. Breakouts by $COP $MRO $NBL $XOM.

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Cdn energy stocks leading Canadian stocks higher. Breakouts by $CNQ.CA $CVE.CA $ERF.CA.

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Technical action by S&P 500 stocks to 10:00: Bullish. Intermediate breakouts: $PEP $COP $MRO $NBL $XOM $CRM. No breakdowns.

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Editor’s Note: After 10:00 AM EDT, intermediate breakouts included RIG, UNH, RMD, V,IFF, MNST, NSC, GGP and PG

S&P 500 Equal Weight ETF $RSP moved above $104.25 extending an intermediate uptrend.

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U.S. Medical Device iShares $IHI moved above $206.64 to an all-time high extending an intermediate uptrend.

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U.S. Healthcare Providers iShares $IHF moved above $182.77 to an all-time high extending an intermediate uptrend.

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TSX Energy iShares $XEG.CA moved above $13.50 extending an intermediate uptrend.

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BCE $BCE.CA, a TSX 60 stock moved above $54.72 completing a Head & Shoulders Reversal pattern.

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Clearwater Seafoods $CLR.CA moved above $5.56 extending an intermediate uptrend.

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for July 10th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Commodities Trends for July 10th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Daily Seasonal/Technical Sector Trends for July 10th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

S&P 500 Momentum Barometer

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The barometer added another 2.60 to 71.00 yesterday. It remains intermediate overbought, but continues to trend higher.

 

TSX Momentum Barometer

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The barometer added another 3.75 to 70.42 yesterday. It remains intermediate overbought, but continues to trend higher.

 

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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3 Responses to “Tech Talk for Wednesday July 11th 2018”

  1. KC Says:

    Hello,

    Anyone here holding BCE.TO ? Any idea why is spiked up in the past two days ? Was there some news ?

    Thanks,
    KC

  2. Paula Says:

    KC, I hold BCE.TO but I don’t know why it spiked up the past 2 days. There was this but it is already a week old:

    http://www.bce.ca/news-and-media/releases/show/Bell-awarded-SuperNet-contract-by-the-Government-of-Alberta-1?page=1&month=&year=

    I am guessing it is a risk off thing. When the market is uncertain, there is the comfort of a 5% yield. Or maybe the downtrend was overdone and this is a short term bounce. But these are just guesses.

  3. KC Says:

    Hi paula,

    Yes i did see that bit of news 2 days ago. However, i doubt the upticks have anything to do with it. Maybe these are short bounces.

    Thanks
    KC

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