Tech Talk for Friday February 8th 2019

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Pre-opening Comments for Friday February 8th

U.S. equity index futures were lower this morning. S&P 500 futures were down 13 points in pre-opening trade.

The Canadian Dollar gained 0.34 to 75.51 cents U.S. following release of Canada’s January Employment Report at 8:30 AM EST. Consensus was a drop to 5,000 from 9,300 in December. Actual was 67,000. Consensus for January Employment Rate was an increase to 5.7% from 5.6% in December. Actual was an increase to 5.8%.

Bank of America (BAC $28.24) is expected to open higher after announcing a $2.5 billion share buyback program.

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Coty surged $1.22 to $8.25 after reporting higher than consensus fiscal second quarter sales and earnings.

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Mattel (MAT $12.36) is expected to open higher after reporting higher than consensus fourth quarter sales and earnings. SunTrust increased its target price to $15 from $13.

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Sketchers advanced $5.07 to 32.77 after reporting higher than consensus fourth quarter sales and earnings. Moness raised its target price to $35 from $32.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/02/07/stock-market-outlook-for-february-8-2019/

 

Observations

Short term momentum indicators (i.e. Stochastics, RSI and MACD) on U.S. equity indices, international indices and economic sensitive sectors rolled over yesterday from short term overbought levels. Technical scores indicated “Trader’s Corner” indicated below responded accordingly. U.S. equity indices have a history of moving higher for 4-6 weeks from extremely oversold levels followed by a retest of previous lows. U.S. equity indices bottomed six weeks ago. Caveat emptor!

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Short Term Political Trouble for the U.S. Corporate Sector

Democrats in the House and Senate announced several initiatives yesterday including:

· A proposal to restrict share buybacks

· An investigation on apparent unfairly low fines on corporations that allegedly acted badly

· Announcement of a “Green New Deal” that effectively will shut down the coal industry over the next 10 years.

· A tax on U.S. equity transactions.

 

Upcoming BNN Appearance

Jon Vialoux will be on BNN’s Market Call Tonight at 6:00pm ET this Friday, February 8th taking your calls on Technical Analysis and Seasonal Investing.  CALL TOLL-FREE 1-855-326-6266,  EMAIL marketcall@bnnbloomberg.ca,  or TWEET @MarketCall.

 

StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Mixed. Intermediate breakouts: $HBI $STI. Breakdowns: $MAC $CTL

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Gildan Activewear $GIL.CA, a TSX 60 stock moved above $45.45 to an all-time high extending an intermediate uptrend

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Mullen Group $MTL.CA moved below $11.29 after interview on BNNBloomberg extending an intermediate downtrend

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Nutrien $NTR.CA, a TSX 60 stock moved above $69.29 completing a modified reverse Head & Shoulder pattern

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Trader’s Corner.

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for February 7th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for February 7th 2019

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Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for February 7th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

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http://www.equityclock.com/about/seasonal-advantage-portfolio/

 

S&P 500 Momentum Barometer

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The Barometer dropped 4.80 to 81.60 yesterday. It has started to roll over from an intermediate overbought level. Caveat Emptor!

 

TSX Momentum Barometer

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The Barometer dropped 4.68 to 81.28 yesterday. It has started to roll over from an intermediate overbought level.

 

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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10 Responses to “Tech Talk for Friday February 8th 2019”

  1. Wayne Smith Says:

    For those who wish to view an excellent daily prep page on the markets, here is the link.

    https://www.youtube.com/watch?v=TL882hIdXYQ

  2. Muntazir Says:

    Pomerantz LLP is investigating claims on behalf of investors of Micron Technology, Inc. (“Micron” or the “Company”) (NASDAQ: MU). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.

    The investigation concerns whether Micron and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

    [Click here to join a class action]

    On May 15, 2018, the Chinese State Administration for Market Regulation (“SAMR”) notified Micron that it was investigating potential collusion and other anticompetitive conduct by semiconductor suppliers in China. On May 31, 2018, SAMR made unannounced visits to Micron offices in Beijing, Shanghai, and Shenzhen to investigate these claims. On November 19, 2018, the Financial Times reported that investigators in China had found “massive evidence” of anti-competitive behavior by Micron, and that the Company had engaged in a price-fixing conspiracy with Samsung Electronics and SK Hynix. Following publication of this article, Micron Technology’s stock price fell $2.61 per share, or 6.62%, to close at $36.83 per share on November 19, 2018.

    Above from TD website. Can anyone advise what to do? Thanks

  3. KC Says:

    Hello Paula,

    Thank you for your comments on BCE this week. Ive never used ADX and would really appreciate some tips on how best to use it in combination with rsi and macd if you have some insight.

    Thanks

  4. rocketdave Says:

    Ron/BC

    Any comments on the spx 500?
    Did it go from bear to bull!??

  5. Ron/BC Says:

    Rocketdave

    Well I’ll let the Daily 20 year chart of the $SPX speak for itself as it doesn’t need my opinion. Note how price rides above the 200ema in bull trends using it as support and bumps up against the 200ema in bear trends using it as resistance. The Modified MACD 50,200,1 with a 20ema below is simply showing the 50ema is presently below the 200ema which occurs in bear trends just like all the other times. That 50ema is also a tad below the Fib 61.8% retracment level as well. The big rally simply brought price up to the 200ema with a nose poke and will likely pullback once again as it always has done. Price would need to clear “and hold” above the 200ema which would get it rising again to be a bull once again. Not likely to do that in just a short selloff period like we had even with the capitulation in December. So until price closes and holds above the 200ema the chart says it’s a bear despite a variety of indicators being bullish with such a strong rebound.

    https://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=20&mn=0&dy=0&id=p2588042315c&a=579408384

  6. Ron/BC Says:

    I wonder where Mick/NV is………… His last post was about one year ago as he was off to Jamaica where he tends to go each year in early February. He was exceptional at using the Stockcharts Scanning tool. I have a few scans saved but he was a whiz kid at it and helpful with writing them. I never did find my scans all that helpful and the results were very time consuming. And I lack patience which doesn’t help. He was very good at Dividend Investing as well which I’m not and will likely never be as I’m more capital focused.

  7. rocketdave Says:

    Ron/BC

    Thank you very much for your thoughts and expertise, much appreciated.
    Sorry Ron that i can’t help you in the scanning department. I tried for a couple of
    hours one time to make a certain scan and couldn’t figure it out. and that was after watching all their videos.

  8. Paula Says:

    Hi KC,
    Here is a brief introduction to ADX. I believe the ChartSchool on Stockcharts is available even if you don’t have a subscription:

    https://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:average_directional_index_adx

    Here is a good description as well as visual examples of using ADX by Chuck LeBeau.

    https://www.scribd.com/presentation/41199378/Chuck-LeBeau-ADX-Average-Directional-Index-Presentation

    Also, here is a link to the TechTalk on November 30th when Ron/BC and I had an extended discussion on ADX with examples:

    http://www.timingthemarket.ca/techtalk/2018/11/30/tech-talk-for-friday-november-30th-2018/#comments

    Hope that is helpful.

  9. Bernie Says:

    Ron/BC,

    I miss Mick/NV too. Am pretty sure he was in Palm Springs the last time we heard from hihim.

  10. Ron/BC Says:

    Bernie
    Yes he talked about Palm Springs and asked if I was going there we could meet for coffee. But I thought that was earlier in the winter like Dec or January. I’m pretty sure he said he was off to Jamaica in early February as I think he goes most every year. I recall thinking about those bathing beauties prancing around on the commercials. But he was a great contributor especially with stock scans and dividend stuff.

    Victoria got some snow and enough to cause road problems especially when they don’t do anything with the roads when it snows and freezes off and on to make them safe. And most everyone isn’t used to driving in the stuff to boot. We also had strong winds and it made me realize why so many Canadians go away for the winter. It’s not usually this ugly here so traveling elsewhere isn’t that important unless cool cloudy and rainy days depresses you. It should clear up in a few days and hopefully be the end of that b.s.

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