Tech Talk for Thursday August 2nd 2018

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Pre-opening Comments for Thursday August 2nd

U.S. equity index futures were lower this morning. S&P 500 futures were down 15 points in pre-opening trade. Futures are responding to news that the proposed rate for China’s tariffs on $200 billion of U.S. products has increased to 25% from 10%.

Index futures were virtually unchanged following release of the Weekly Jobless Claims report. Consensus was an increase to 220,000 from 217,000 last week. Actual was 218,000.

Tesla advanced $26.26 to $327.10 after reporting higher than consensus quarterly revenues.

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Bombardier (BBD.B $4.75 Cdn.) is expected to open higher after reporting higher than consensus second quarter earnings.

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Nutrien added $0.17 to $54.38 U.S. after reporting higher than consensus second quarter earnings. The company also raised its guidance.

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Wynn Resorts plunged $7.14 to 152.85 after reporting lower than consensus second quarter sales and earnings.

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EquityClock’s Daily Market Comment

Following is the link:

http://www.equityclock.com/2018/08/01/stock-market-outlook-for-august-2-2018/

 

Observations

News from the FOMC meeting released yesterday at 2:00 PM EDT was in line with expectations. The Fed Fund rate was maintained at 1.75%-2.00%. Comments by the Fed continued to indicate another 0.25% increase in the Fed Fund Rate on September 26th when the next meeting concludes. Responses by equity, commodity and bond markets were muted.

A fund holding China A shares responded to a proposed increase in the tariff rate on $200 billion Chinese goods to 25% from 10%.

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StockTwits Released Yesterday @EquityClock

Intact Financial $IFC.CA moved above $10070 extending an intermediate uptrend.

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Technical action by S&P 500 stocks to 10:00: Bearish. Intermediate breakouts: $BHF $AIG . Breakdowns: $HBI $APC $DVN $RIG $ADP $AKAM $IT

Editor’s Note: After 10:00 AM EDT, breakouts included PKI, ETR, CI, SLG and BXP. Breakdowns included BLK, ESRX and TROW.

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Encana $ECA.CA $ECA, a TSX 60 stock moved above $18.06 Cdn and $13.92 U.S on higher than consensus earnings extending an intermediate uptrend.

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Trader’s Corner

Equities and Related ETFs

Daily Seasonal/Technical Equity Trends for August 1st 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for August 1st 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for August 1st 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 dropped 4.60 to 63.20 yesterday. It remains intermediate overbought and shows signs of rolling over

 

TSX Momentum Barometer

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The Barometer dropped another 2.31 to 51.25 yesterday. It remains intermediate neutral and continues to trend down.

 

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 Thursday August 2nd 2018”

  1. John Says:

    I’m thinking of buying BIP.UN.TO Brookfield Infractructure but I’m not clear if there are any tax benefits holding units vs shares.
    Any opinions ?

  2. Bernie Says:

    Capital Ideas Research has BIP.UN as its chart of the day today. I can’t link the newsletter and am away from my home desktop to post a chart. Perhaps Ron/BC could put up a chart and his take up for those interested.

    John, Re: #1
    BIP.UN, and other interest bearing Canadian securities, are best held in am RRSP, RRIF or TFSA.

  3. Bernie Says:

    Some of the more conservative investors on this blog might find the linked article and site its on of interest to them. I’ve read many of Canadian author Dale Roberts articles on Seeking Alpha. His new upstart “Cut The Crap Investing” contains lots of useful resources for newbie and “challenged” investors.
    https://cutthecrapinvesting.com/2018/08/02/how-much-can-you-expect-to-make-from-your-investments/

  4. Ron/BC Says:

    John
    Here is a chart of BIP/UN.to. This is my technical take on this chart nothing more as I don’t get into the fundamentals. The stock has been in a sideways channel for all of 2018 between $49 and $54 which acts as support and resistance. Price is presently bumping up against $54 resistance and upper momentum indicator RSI 8 is showing a negative divergence meaning there is a loss of momentum at resistance which is typical. If I had a gun to my head I’d short the stock here at $54. Since the last test of $49 support in late May price has been in an uptrend with higher lows and higher highs along with both lower trend indicators of Modified MACDs bullish and above their zero lines.(orange lines). The lower RSI 21 is also above its 50 line and holding. So since May the trend has been much improved and is in a steady uptrend. But resistance is resistance and as positive as it is since May price needs to clear $54 AND HOLD ABOVE $54 to suggest a continued uptrend. Meanwhile short term support is that uptrendline since the May low support test which could be bought but is not strong support like the bottom of the channel at $49. Volume on the stock is very low which is what causes these big spikes up and down and any large trader could move the stock one way or the other with such low volume. Very typical of $TSX listed stocks. Bottom line: I’d buy a breakout over $54 that holds or a re-test of support at $49 and ignore the rest. Also I believe today is earnings day which is never a good time to buy or sell until the market’s reaction to the earnings news is over. Any surprise with this low volume could see a spike either way. That’s my view of the stock fwiw…………..

    https://stockcharts.com/h-sc/ui?s=BIP%2FUN.TO&p=D&yr=2&mn=0&dy=0&id=p97868301994&a=579408490

  5. Ron/BC Says:

    The Dow has been bumping up against 25500 level for 5 months now and is pulling back once again. Price needs to clear and hold above this level to expect it to run another 1100 pts to a double top at 26600. Meanwhile the Dow has been consistently underperforming the $SPX as the upper chart shows.
    The $SPX has cleared its March high of 2800 and is looking bullish using the breakout point as support for over 2 weeks now and most other technicals bullish as well. Very nice bounce off of 2800 so far today. As long as price holds above 2800 expect a run towards the January high of 2872.

    https://stockcharts.com/h-sc/ui?s=%24INDU&p=D&yr=1&mn=0&dy=0&id=p05871301838&a=587927219

    https://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=8&dy=0&id=p07400148118&a=582707024

  6. KC Says:

    Hi RonBC,

    Thanks for yout thoughts on HD and Lowes the other night.

    Wondering what yo think of USD this week. Do you think it ill break through 95 resistance area and keep climbing much? News reports think this week will be positive for the USD. Is the sideways movement since June , basebuilding?

    Thanks
    KC

  7. John Says:

    Thanks Ron/BC for your take on BIP/UN.TO.

  8. Ron/BC Says:

    KC
    The U.S.$ is just consolidating under strong price resistance. Technically each time it tags 95 it eats away some of that resistance. Wish it would take a big bite! Not so sure you could call hovering under resistance as base building as that tends to be seen at price lows and oversold. But the technicals are bullish anyway you view it so it just needs a good reason to breakout. The above charts are doing as expected too. Watch the CD$ and if it clears 77 on some good volume it could run to 80. I wouldn’t bet a lot on that but never say never and a breakout over 77 would suggest just that.

    https://stockcharts.com/h-sc/ui?s=%24USD&p=D&yr=2&mn=0&dy=0&id=p24023895887&a=590222022

    https://stockcharts.com/h-sc/ui?s=%24CDW&p=D&yr=1&mn=6&dy=0&id=p37867005888&a=579408456

  9. John Says:

    I participated in our company group TFSA through Computershares.
    I contributed $12,000 to this group TFSA for 3 years and the share price appreciated quite nicely.
    I sold everything in this company group TFSA and amounted $30,000.

    Now the question:
    I would like to move all my money assets out of ComputerShare to my own TFSA with TD.
    But my actual TFSA contributios were $12,000 for 3 yrs and profit was $18,000 to make a total of $30,00.

    How will Revenue Canada see that relocation of funds, as a new $30,00 dollars contribution to my TFSA, or just the $12,000 ?

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