Tech Talk for Wednesday November 14th 2018

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Pre-opening Comments for Wednesday November 14th

U.S. equity index futures were higher this morning. S&P 500 futures were up 12 point in pre-opening trade.

Brrrrr, it’s cold out there! It snowed in our neighborhood last night. The spot price for Natural gas jumped $0.55 to $4.65 per MBtu in overnight trading. As the expression goes, “Buy (equities) when it snows, sell when it goes”.

Index futures moved slightly higher following release of the U.S. October Consumer Price Index at 8:30 AM EST. Consensus was an increase of 0.3% versus a gain of 0.1% in September. Actual was an increase of 0.3. Excluding food and energy, consensus was an increase of 0.2% versus a gain of 0.1% in September. Actual was an increase of 0.2%

3M (MMM $198.37) is expected to open higher after the company announced a $10 billion share buyback program.

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Cineplex (CPX $36.05 Cdn) is expected to open higher after reporting higher than consensus third quarter earnings.

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Loblaw Companies (L $58.60) is expected to open higher after reporting higher than consensus third quarter earnings.

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Apple added $0.77 to $193.04 despite a downgrade by Guggenheim to Neutral from Buy.

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Macy’s gained $0.36 to $36.15 after reporting higher than consensus third quarter sales and earnings.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/11/13/stock-market-outlook-for-november-14-2018/

Note seasonality chart on the Russell 2000 Index.

 

Observation

CNBC talked last night about the dreaded “Death Cross” by the Russell 2000 Index when the Index almost completed the pattern yesterday. The “Death Cross” occurs when the 50 day moving average moves below the 200 day moving average. The indicator implies significantly lower prices for small cap stocks. Tech Talk’s previous studies on this indicator show that returns for this indicator tend to be random. Seasonality charts suggest the likelihood of strength rather than weakness to at least year end.

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StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 11:30: Bearish. Intermediate breakouts: $AVB $USB. Breakdowns: $BBY $CXO $EOG $HAL.

Editor’s Note: After 11:30 AM EST, no additional breakouts. Breakdowns: HFC and OKE

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Rogers Communications $RCI.B.CA $RCI, a TSX 60 stock moved above $69.35 Cdn. to an all-time high extending an uptrend.

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First Majestic Silver $AG $FR.CA moved below $5.01 U.S. and $6.60 Cdn. extending an intermediate downtrend.

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Lumber ETF $WOOD moved below $64.44 extending an intermediate downtrend.

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More S&P Energy stocks break intermediate support: $HFC $HP $OKE $PSX.

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Suncor $SU.CA, a TSX 60 stock moved below $43.12 extending an intermediate downtrend.

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Trader’s Corner

Note deterioration of Momentum indicators by a wide variety of indices, commodities and sectors

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for November 13th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for November 13th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for November 13th 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 1.60 to 37.80 yesterday. It remains intermediate oversold.

 

TSX Momentum Barometer

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The Barometer slipped another 1.67 to 30.13 yesterday. It remains intermediate oversold.

 

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 Wednesday November 14th 2018”

  1. wsto Says:

    “Cineplex (CPX $36.05 Cdn) is expected to open higher after reporting higher than consensus third quarter earnings.”

    There is a mistake here. CGX reported missed their earning estimate and it is currently down 20%.

  2. Ron/BC Says:

    Bernie
    Here is a chart of HAC.to you were referring to. It’s a Daily chart not Weekly. Price is still respecting its 3 year uptrendline unlike most stocks or ETFs. Price is also respecting the 200ema that is also at that uptrendline plus at the breakout over the January 2018 high of $18.85. Very impressive and not what I would have expected of this ETF based on seasonality as the seasonal trends haven’t been that accurate so some time from what I’ve seen. Bottom line is an easy one: As long as price remains above $18.85 the ETF is in good shape. I would buy at that uptrendline or close to it with the RSI 8 bouncing back above the 30 line. I’ve overlaid the XIU.to and SPY which have much higher volatility to see the comparison.
    Also not sure if I’ll go anywhere this winter as both my partner and myself have some minor health issues to deal with. And traveling seems to have so many variables that make me wonder what the point is other than warmer weather. I’m not a fan of change and chaos and ‘fun’ isn’t something I look for. But Mexico is still on the table I guess. And I’ll be getting my first RIF cheque this December and in U.S.$ too. I don’t know if there are golf courses where we may go or not but would golf if there are any. That’s why I thought I’d update my condo with that money instead. Seems like a good win/win trade,lol. I stopped putting left hand low as it’s hard on the neck and I do have some arthritis there that makes it uncomfortable. But I should just deal with it as no one said it would be easy.

    https://stockcharts.com/h-sc/ui?s=HAC.TO&p=D&yr=9&mn=0&dy=0&id=p0667744520c&a=579408532

  3. Ana Says:

    $SPX $ES

    Break 2705 on the third time down?

  4. Ana Says:

    Gap filled at 2686

  5. Ana Says:

    $SPX $ES

    Backcheck is completed at 2705, now becomes resistance.

  6. Ana Says:

    #5. Wrong

    Be aware that the weekly and monthly macd have crossed to the downside.

    Correction might not be finished.

  7. Ron/BC Says:

    CORRECTION:
    #2 should read $19.85 (not $18.85)

  8. Bernie Says:

    Ron/BC
    Paul Ross

    Re: #2 & 7
    Thanks Ron. Looks like HAC might be a good add to an investment portfolio to reduce the overall volatility. Sorry to hear you and your partner have some health issues. Hope you’re back to full health soon!

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