Tech Talk for Wednesday February 13th 2019

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Pre-opening Comments for Wednesday February 13th

U.S. equity index futures were higher this morning. S&P 500 futures were up 6 points in pre-opening trade.

Index futures were virtually unchanged following release of the January Consumer Price Index at 8:30 AM EST. Consensus was an increase of 0.1% versus a decline of 0.1% in December. Actual was unchanged. Excluding food and energy, consensus for the January Consumer Price Index was an increase of 0.2% versus a gain of 0.2% in December. Actual was an increase of 0.2%.

The Shanghai Composite Index moved above 2703 to 2721 last night completing a double bottom pattern.

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Hilton (HLT $74.32) is expected to open higher after reporting higher than consensus fourth quarter sales and earnings.

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TripAdvisors dropped $2.80 to $57.59 after reporting lower than consensus fourth quarter earnings.

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Akamai Technology added $0.42 to $69.75 after reporting higher than consensus fourth quarter earnings.

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Louisiana Pacific gained $0.57 to $24.84 after announcing a $600 million share buyback program.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/02/12/stock-market-outlook-for-february-13-2019/

Note seasonality chart on U.S. Job Openings.

 

Observations

U.S. equity indices managed to reach new recent highs following news that Congress moved to avoid another government shutdown. Note that the S&P 500 Index, Dow Jones Industrial Average and NASDAQ Composite Index are bumping their heads on the red line, the 200 day moving average.

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StockTwits Released Yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Bullish. Intermediate breakouts: $MTB $PBCT $ALK $UNP No breakdowns.

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Editor’s Note: After 10:00 AM EST, intermediate breakouts included AZO, ADP, PAYX, AEP, ANET, ADSK, FTV, ROL, BLK, ABT, ADBE, SHW, AEE, XEL, APD, EIX, GLW, DHI, GPC, TROW, ISRG and GPN.

Vietnam ETF $VNM moved above $15.97 completing a double bottom pattern.

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Editor’s Note: Frontier and Emerging markets such as Vietnam continue to show an improving technical profile. Nice move by Frontier iShares above $28.66 extending a base building pattern!

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Industrial SPDRs $XLI moved above $74.00 extending an intermediate uptrend

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Another gold producer stock breakout! New Gold $NGD.CA moved above $1.65 extending an intermediate uptrend

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CCL Industries $CCL.B.CA, a TSX 60 stock moved above $57.53 extending an intermediate uptrend.

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Total put-call ratio currently 0.68. Should it close around this level, it would be the lowest since January 23rd of last year. $CPC $SPX

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Job Openings show the largest percentage growth on record last year, up 31.9%. $MACRO $STUDY #JOLTS #Employment

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Agriculture ETF $COW.CA moved above $37.72 extending an intermediate uptrend

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Trader’s Corner.

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for February 12th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for February 12th 2019

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Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for February 12th 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 added 6.00 to 87.60 yesterday. It remains intermediate overbought.

 

TSX Momentum Barometer

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The Barometer added 1.28 to 82.55 yesterday. It remains intermediate overbought.

 

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 Wednesday February 13th 2019”

  1. KC Says:

    morning RonBC,

    Have you ever looked at wsp global wsp.to? do you think it will back off from a potential double top?

    Anyone else cae to share thoughts on the fundamentals please?

    Thanks
    KC

  2. Bernie Says:

    KC,

    I haven’t followed WSP closely since their Genevar origins when they were considered a dividend growth stock. The dividend has remained the same for many years.

    I prefer to use current vs 5-Yr average P/E, P/B, P/CF and yield to determine fundamental value. If I give equal weighting to each of these metrics I compute an overall 10% overvaluation in stock price.
    P/E = 11.4% overvalued
    P/B = 21.1% overvalued
    P/CF = 27.7% undervalued
    Yield = 33.3% overvalued

    The beta, according to TMX Mobile, is 1.131. This indicates the price has been more volatile than the broad equity index. Here is a link to the street consensus which I don’t believe in: https://web.tmxmoney.com/research.php?qm_symbol=WSP

    If other fundamental metrics appeal to you Morningstar is a good source for key stats: https://web.tmxmoney.com/research.php?qm_symbol=WSP

    Stockchase is another ok source if you find use for BNN guest analyst comments on a stock: https://stockchase.com/company/view/2488/WSP-T

    You won’t find WSP metrics on the Canadian Dividend All-Star List because the company isn’t considered a dividend growth stock per the 5-Yr dividend growth streak. If and when they do raise they will have to raise again over the next 4 consecutive years to make it on to the list.

    WSP isn’t for me. Hope the info above helps you in your DD.

  3. dutchcanuck Says:

    NRG
    AW/UN We have a breakout!

  4. Ron/BC Says:

    KC
    WSP.to bottomed with most other stocks and has bounced back and cleared the multi month downtrendline. Plus it’s cleared $67 that has often served as support and resistance as well. That’s a good sign. And the RSI 21 is staying above the 50 line since the rebound began. As long as price remains above $67 the stock is healthy. Resistance is from $71 to $74. Seasonals for March and April are wildly bullish. February not so much. But watch for $67 to hold…..or not.

    https://stockcharts.com/h-sc/ui?s=WSP.TO&p=D&yr=2&mn=0&dy=0&id=p9609029951c&a=646035709

    https://stockcharts.com/freecharts/seasonality.php?symbol=WSP.TO&compare=

  5. KC Says:

    bernie,

    Thats some great insight on wsp. Thanks you !!

  6. KC Says:

    Ron/BC,

    Thank yu for comments n chart.

    When you use rsi (8) and (21), do you interpret them differently? If ao, can yu explan please?

    Thanks

  7. KC Says:

    Typo. “Your comments”. Typing too fast for virtual keyboard. Haha

  8. Ron/BC Says:

    KC
    The RSI 8 is a short term indicator showing overbought above 70 or oversold below 30. I draw a vertical dashed line over the oversold periods when it is re-crossing back above 30. You’ll notice most of the time that is at or very near a price low. It does not work well in steep downtrends as all it will do is give several buy signals back above the 30 line often with price bouncing back for 1-3 days and selling off again in its downtrend. Good for very short term traders then only. When above 70 that crosses back below 70 is a warning of a price pullback. Often it will stay above 70 in strong uptrends and is not a negative until it falls below 70. It is a momentum indicator so shouldn’t be ignored.

    The RSI 21 is a longer term indicator and while it is still good for buy signals recovering back above the 30 line it is especially good when re-clearing the 50 line and staying above that line which suggests price is back in an uptrend even when price hasn’t done much yet. I’ve checked it with other indicators when turning bullish and it is very good for determining uptrend or downtrend. But erratic price action with stock that have a high beta you’ll see the RSI 21 whipsawing back and forth through the 50 line which doesn’t tell you anything other than you are dealing with a volatile stock price.

  9. Lony Says:

    Bernie
    Re #2 today and WSP Global.
    Excellent guidance, as always.
    Something wrong with the links.
    Your time is appreciated.

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