Tech Talk for Thursday November 1st 2018

Daily Reports Add comments

Pre-opening Comments for Thursday November 1st

U.S. equity index futures were higher this morning. S&P 500 futures were up 5 points in pre-opening trade.

The Bank of England maintained its overnight lending rate at 0.75%.

Index futures were virtually unchanged following release of the Weekly Jobless Claims report at 8:30 AM EDT. Consensus was unchanged from the previous week at 216,000. Actual was 214,000.

Encana (ECA U.S.$10.24) is expected to open slightly lower after the company proposed a U.S.$5.5 billion purchase of Newfield Energy (NFX U.S.$20.20) with a share exchanged valued at $27.36 per share. Each share of Newfield is exchanged into 2.57119 shares of Encana.

clip_image001

OpenText (OTEX U.S.$33.80) is expected to open lower after reporting lower than consensus quarterly earnings.

clip_image002

Suncor (SU $44.16) is expected to open higher after reporting higher than consensus third quarter sales and earnings.

clip_image003

Allstate (ALL $95.72) is expected to open lower after reporting lower than consensus third quarter earnings.

clip_image004

 

EquityClock’s Daily Market Comment

http://www.equityclock.com/2018/10/31/stock-market-outlook-for-november-1-2018/

Note seasonality charts on S&P 500 during past 50 years, Crude Oil Days of Supply, Gasoline Days of Supply and Crude Oil.

Observations

Short term momentum indicators (Daily Stochastics, RSI and MACD) for North American equity indices turned higher yesterday. They also turned higher for equity indices of developed nations around the world

image

image

image

 

The Bottom Line

Short term technical signs by equity markets were encouraging yesterday. They occurred at an interesting time: On average, during the past 50 years, the S&P 500 Index and Dow Jones Industrial Average reached their seasonal low on October 29th and moved higher to the first week in January. Technical evidence is positive enough to resume equity purchases by adding to initial purchases completed during the past 10 days.

 

StockTwits released yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Bullish. Intermediate breakouts: $CMCSA $MRK $WAT $XLNX. Breakdown: $K

Editor’s Note: After 10:00 AM EDT, breakout: GM and breakdown: CNP

image

Merck $MRK, a Dow Jones Industrial stock moved above $73.49 to an all-time high extending an intermediate uptrend.

image

Comcast $CMCSA has a positive seasonal profile between now and mid-January.

image

U.S. Dollar Index and its related ETN $UUP moved to 15 month highs.

image

image

Editor’s Note: Conversely, the Euro touched a 15 month low

 

Trader’s Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for October 31st 2018

spx nov 1

Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for October 31st 2018

crb nov 11

Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for October 31st 2018

xlk nov 1

Green: Increase from previous day

Red: Decrease from previous day

 

S&P 500 Momentum Barometer

image

The Barometer slipped 0.55 to 21.64 yesterday. It remains intermediate oversold and shows early signs of bottoming.

 

TSX Momentum Barometer

image

The Barometer added 3.73 to 17.43 yesterday. It remains intermediate oversold and shows early signs of bottoming.

 

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

Sponsored By...



3 Responses to “Tech Talk for Thursday November 1st 2018”

  1. Ron/BC Says:

    Here is a chart of the $GOLD ETF:GLD with the Gold Stock ETF:GDX overlaid. Price broke its uptrendline in June and then broke its Dec/17 low of $117.40 in July. After a selloff to $111 in August price has bounced back to that $117 breakdown point and typically saw price selloff at that resistance point. Price needs to clear and hold above $117 to suggest a run to $123 to $127. So far no cigars but trend indicators are more positive. Note the vertical dotted lines marking the RSI 8 crossing back above the 30 line. The indicator is good for catching price lows but will also give the same buy signal in a strong downtrend catching ultra short term lows with just a day or so dead cat bounce and then new price lows. This can continue all the way down with multiple buy signals. So while the indicator is very good at catching price lows ‘most of the time’ it has a character flaw like all indicators do. But as always price is King and the bottom line is price needs to clear $117 and hold to suggest a strong rally higher.

    https://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=2&mn=0&dy=0&id=p3669147550c&a=579408505

  2. Ron/BC Says:

    Re #1-GLD
    Note the last 3 Daily bars have formed an Island Reversal which is a very bullish chart pattern suggesting a reversal in price back to up. Doesn’t change things other than to watch $117 closely for a breakout, but is a heads up of a more likely change in trend back to up.

  3. Ana Says:

    $SPX

    https://invst.ly/92hb1

TopOfBlogs Finance Blogs
Entries RSS Comments RSS Log in