Tech Talk for Wednesday December 5th 2018

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Pre-opening Comments for Wednesday December 5th

Canadian equity markets are expected to open mixed in quiet trade today. U.S. markets are closed. S&P 500 Index futures were up 16 points after China noted that it is confident that a trade agreement with the U.S. will be reached within the 90 day window.

The Canadian Dollar slipped 0.04 to U.S. 75.34 cents prior to a Bank of Canada statement on interest rates scheduled to be released at 10:00 AM EST. Consensus is that the Bank of Canada’s overnight lending rate to Canada’s banks will remain unchanged.

National Bank (NA $60.06) is expected to open higher after increasing its dividend.

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Hudson Bay (HBC $9.04) is expected to open higher after reporting a lower than consensus third quarter operating loss.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2018/12/04/stock-market-outlook-for-december-5-2018/

Note seasonality chart on Cdn. REIT Index ETF.

 

U.S. Markets

They are closed today for the George H. W. Bush memorial.

Observations

U.S. bank stocks led the drop by U.S. equity indices yesterday on concerns that the yield curve on U.S. Treasuries are about to invert.

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U.S. Treasury prices soared (i.e. Yields on long term Treasuries dropped)

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But, the spread between 10 year Treasury Yields and 2 year Treasury Yields narrowed ( i.e. Yields on 2 year Treasuries will little changed despite the drop in long term Treasury Yields). Net result: Yield spreads realized by bank loans/mortgages narrowed and bank stocks responded.

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TIPS moved above a base building pattern.

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Volatility spiked.

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Cannabis ETF moved below $16.34 extending an intermediate downtrend.

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StockTwits Released Yesterday

Technical action by S&P 500 stocks to 10:00 quietly bullish. Intermediate breakouts: $HCP $ARE. No breakdowns

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Editor’s Note: U.S. equity markets began to drop sharply after 10:00 AM EST. Financials led the drop.

Financials dominate list of breakdowns this afternoon: $COF $DFS $FITB $HIG $CFG $RF $STI $STT $WY.

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Bank of Montreal $BMO.CA, a TSX 60 stock moved below $96.45 extending an intermediate downtrend.

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Canadian Utilities $CU.CA moved above $31.97 setting an intermediate uptrend.

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New Flyer Industries $NFI.CA moved below $35.89 extending an intermediate downtrend.

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Trader’s Corner

Lots of markets broke below their 20 day moving average.

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for December 4th 2018

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for December 4th 2018

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Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for December 4th 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 plunged 23.40 to 41.20 yesterday. It changed to Intermediate Neutral from Intermediate Overbought on a move below 60.00

 

TSX Momentum Barometer

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The Barometer dipped 4.96 to 35.95 yesterday. It changed to Intermediate Oversold from Intermediate Neutral on a move below 40.00.

 

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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6 Responses to “Tech Talk for Wednesday December 5th 2018”

  1. KC Says:

    Hello Ron/BC,

    Would love to get your TA on SOYB if you have a chance.

    Thanks,
    KC

  2. Ron/BC Says:

    KC

    Here is a chart of the entire life of SOYB. Price keeps breaking down after a consolidation. “IF” you see price clear $17 and hold odds would favour a run up to $19.50. Meanwhile it’s a bear………….

    https://stockcharts.com/h-sc/ui?s=SOYB&p=D&yr=7&mn=0&dy=0&id=p4566683867c&a=634579759

  3. dutchcanuck Says:

    5i Research
    They now offer a free 1 month test drive of their service.
    I just signed up and will probably become a full fledged paying member once the free trial expires.

  4. Ana Says:

    $SPX Futures – Dec 18

    https://invst.ly/9fo3w

    Do not know why everyone is surprised, after the bear flag?

  5. bruce Says:

    good calls Ana…..

  6. kam Says:

    Ana,

    I think lots of people bought the dip on Tuesday and HODLING bag now.

    IF we can’t make over 2710 we are looking the whites in the eyes of 2500, as per EW.Good luck all.

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