Tech Talk for Friday April 12th 2019

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Pre-opening Comments for Friday April 12th

U.S. equity index futures moved higher this morning. S&P 500 futures were up 15 points in pre-opening trade. Index futures responded to encouraging economic news released by China.

Anadarko advanced $13.90 to $60.70 and Chevron dropped $6.20 to $119.70 after Chevron made a $33 billion cash and share offer to acquire the company. Estimated per share value of offer is $65.

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JP Morgan advanced $2.65 to $108.88 after reporting higher than consensus first quarter earnings.

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Wells Fargo (WFC $47.74) is expected to open higher after reporting higher than consensus first quarter earnings.

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Boeing gained $3.03 to $373.19 after announcing successful test flights using updated software on its 737 Max aircraft.

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Mosaic dropped $0.45 to $26.44 after halting operations at its phosphate mine in Brazil.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/04/11/stock-market-outlook-for-april-12-2019/

Observation

Recovery by U.S. Financial services yesterday was led by Insurance stocks.

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StockTwits released yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Quietly bullish. Intermediate breakouts: $HRB $PHM. No breakdowns

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Editor’s Note: After 10:00 AM EDT, intermediate breakouts included CBS, SYY, L and FLS. Breakdown: UNH.

Manulife Financial $MFC.CA, a TSX 60 stock moved above $23.84 extending an intermediate uptrend.

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Another Canadian energy stock breakout! Crew Energy $CR.CA moved above $1.29 extending an intermediate uptrend.

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Eurozone ETF $EZU moved above $39.84 extending an intermediate uptrend.

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National Bank $NA.CA, a TSX 60 stock moved above $62.47 extending an intermediate uptrend.

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Enbridge $ENB.CA, a TSX 60 sock moved above $49.57 extending an intermediate uptrend.

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Pembina Pipeline $PPL.CA moved above $50.26 to an all-time high extending an intermediate uptrend.

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Another Cdn. pipeline breakout! Inter Pipeline $IPL.CA, a TSX 60 stock moved above $22.39 extending an intermediate uptrend

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Shopify $SHOP.CA moved above $210.10 to an all-time high extending an intermediate uptrend.

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UnitedHealth Group $UNH, a Dow Jones Industrial stock moved below $233.62 extending an intermediate downtrend.

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Trader’s Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for April 11th 2019

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Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for April 11th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for April 11th 2019

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Green: Increase from previous day

Red: Decrease from previous day

Keith Richard’s Blog

Headline reads, “Have your cake and eat it too: a new strategy for trading value stocks”.

Following is a link:

https://www.valuetrend.ca/have-your-cake-eat-it-too-a-new-strategy-for-trading-value-stocks/

 

S&P 500 Momentum Barometer

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The Barometer added 0.20 to 80.76 yesterday. It remains intermediate overbought.

 

TSX Momentum Barometer

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The Barometer dropped 1.65 to 70.37 yesterday. It remains intermediate overbought and showing signs of rolling over.

 

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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11 Responses to “Tech Talk for Friday April 12th 2019”

  1. tawny Says:

    Ron/BC
    Thanks for charts yesterday… I will do what I can to save them.
    NTR
    As for heat in Mexico, I am high in the mountains at the largest lake in Mexico… Lake Chapala. The weather here is labelled by National geographic as the second best climate in the world…. major attraction for living here. Most people up North think of Mexico weather as it is on the coastal areas where it is hotter and more humid. Some places in Mexico get snow at times. Here in Ajijic, on the lake, we have had no rain now for several months. It is cool at nights and warms up with the sun. May is the hottest month… but then the rains come in June… and weather gets cooler. Like Camelot it mostly rains during the night… dramatic thunder booms through the mountains. Many of us expats enjoy the summer rainy season. Snowbirds return but we then get sweat birds… people come here from hotter climates, from the coast areas in Mexico, Florida, Arizon, etc.

  2. Larry/ON Says:

    JPM beat on both the top and bottom lines was the clincher plus excellent economic data out of China. QQQ less than a point away from the old high. The bear went back to his cave. No bear market. We will take out the old highs.

  3. tawny Says:

    Ron/BC and everyone… here is information on how to save annotated charts from someone else into your own list.. the tick is knowing the symbol for saving.

    https://stockcharts.com/docs/doku.php?id=chartnotes:how_to_save_a_blog_writer_s_annotations_in_your_chartlist

  4. Larry/ON Says:

    SP500 1% from all-time high! FDX and CAT moving nicely based on economic optimism. Neck-line breaks by XLF and transports DJT confirm validity of the trend. Everything is lining up for a bull market.

  5. Ron/BC Says:

    Tawny

    Thanks for the info in #1. Also for post #3 I believe one would need to have a subscription to Stockcharts to save a chart using that system. I did copy a chart and then pasted it with an email to someone who was not a subscriber and it worked as well. Not that I’m good at that sort of thing but the person did get the chart exactly as I sent it.

  6. Ron/BC Says:

    The rebound and continued rise in this stock market reminds me of an old tale I came across long ago. A cowboy rides into town and asks a local if there is any poker games going on in town. The local says yep, right in that bar and it’s the only game in town, but it’s crooked! The cowboy says thanks and heads into the bar. The local says “Hey,are you deaf? I said the game is crooked! The cowboy said Yep,I heard you, but like you also said it’s the only game in town. Much like the stock market presently……………..

  7. bruce Says:

    sherri or gary

    Armstrong has a new update on the u.s. market which im sure many of us would appreciate seeing….

  8. Paula Says:

    Ron/BC re your #7 April 12th 12:36am
    Sorry for the delay in responding. RE saving charts, I tried my instructions again and they worked. This only works for members, that is, you need a subscription, which I know you have but not sure if Tawny does. Also, I find that I need to make some small change or it will not save any of the annotations. Here is my small change to one of your XIU.TO charts:

    http://schrts.co/sRTtMSvt

    RE: Gary Shilling, I ended up watching a few videos to find the one I saw on TV. I took notes. I did eventually find the one I wanted and the link is given below. I took more notes…
    Previous videos:
    Large cash positions ~ 50% in USD. Still holding treasuries for capital gains.
    No clearly defined trends in things he likes. Much better off being out during bear markets than holding and better than being in during bull markets.
    In sideways market. Top down analyst, not bottom up. Re commodities: “all glory is fleeting” translation of speech given at mining convention. Closer to top than bottom…not buying…
    Also questions oil price at current level as well as Toronto and Vancouver house prices.

    https://www.bnnbloomberg.ca/video/investor-famous-for-predicting-downturns-says-there-s-a-2-in-3-chance-of-a-recession~1657253

    Very few can forecast a recession before it happens, then do so after mkt collapses “about as handy as a pocket in your underwear”

    Fed and other CB are scared – have stopped tightening: consumer spending weakening, employment gains weakening; more concerned with deflation. Like Japan. Growth of populism b/c wage growth has not occurred due to globalization; even weak price increases in services; debt is worse in deflation but ok when inflation;

    Due to delays in monetary policy, whatever happens is already baked in.
    Only time Fed has succeeded in engineering a soft landing since WWII, was in mid ninety’s.
    Have never had to deal with selling off huge portfolio due to QE.
    Will not know about recession until mid year. If avoided, Fed will like raise rates again b/c want to have more dry powder.
    Fed not happy with rush to hedge funds, private equity. Search for yield not a bubble yet but indicates a speculative bent. More risk being taken in order to meet targets. People don’t understand the risk.
    Bitcoin example of pure speculation.

    Lower credit corporate bonds like triple B and lower used to be 20-30%, now 50% of total (bond issuance?). If down graded, holders will have to dump which will cause cumulative down side.
    Post war recession accompanied by crises like dotcom bust or housing bust can have market collapse but don’t see that now.

    Labour compensation vs profits: latter has been declining for decades but recently starting to tick up, therefore, can’t expect increase in profits.

    Analysts paid to be bullish, always overestimate earnings.
    Stocks always sell off ahead of recessions but timing uncertain. Therefore cautious, long USD, US treasuries (benefit from decline in inflation), short bitcoin, commodities, including copper (demand weakens as economies sag), bullish on healthcare, staples, utilities, long US 30 year bonds – not buying for yield, expect capital gains as yields decline. One exception re international markets – bullish on India, better bet than China.

  9. Ron/BC Says:

    Paula

    Thanks for the link. It was a very good video and a realistic analysis from him as he doesn’t have the big egos so many do. Much better than all the pie in the sky b.s. that most financial analysts pump out. But they all have to make a living selling their theories. I personally came to the conclusive that I don’t really care if there is an official recession,slow down or boom times. What is important to me is if I make money on something or not. It doesn’t really matter if it’s a bull market or bear market and the definitions of them are always questionable. You either make, or most importantly KEEP the money you already have, PLUS make some more money or not. And do it as safely as possible without the fear of missing out. I’ve used the analogy that the most important thing about fishing isn’t catching fish. It’s not drowning! And after that it’s having fun and enjoying the day. Lastly it’s catching fish.

    I didn’t see any affect on the chart you reproduced. Over time those shorter horizontal lines that are drawn with the trendline indicator not the horizontal indicator will angle up and distort I’ve found. Don’t know why and Stockcharts never did give me a sensible answer. I straighten them out now and again. The horizontal lines right across the entire chart don’t distort,just the shorter sideways ones. Here is a chart of TLT which is the long term U.S.Bond ETF. Overlaid is the $SPX in dk.blue as well as the 7-10 year bond ETF:EIF and the CD Bond ETF:XBB.to. The TLT which is considered to be the best hold in questionable times looks like it has done very well for itself even with a 10 year bull market in stocks. Price is presently pulling back a little but I’d sure like to see it get oversold and near support at some point to plunk some money down on it and forget about it as long as it holds above my entry point. If you have any thoughts on TLT please post them.

    https://stockcharts.com/h-sc/ui?s=TLT&p=D&yr=12&mn=0&dy=0&id=p50096929257&a=579408375

  10. Larry/ON Says:

    Trump Says “Stocks Should Be 5,000 to 10,000 Higher” And Slams The Fed – I love it. It’s Disneyland for investors. Trump will make every American rich from the stock market. There won’t be any poor people except those who were not smart enough to buy stocks in Trump’s America. We would all be better off if we did away with the Fed and put Trump in charge of interest rates.
    https://www.bloomberg.com/news/articles/2019-04-14/trump-slams-fed-again-says-stocks-should-be-5-000-10-000-higher?srnd=premium-canada

  11. Ron/BC Says:

    I was looking at my scanning tool which I rarely do and the one scan that is super fussy that usually has zero stocks that pass that test came up with one from the Friday close. Here it is and it has pulled back to the breakout point which ‘should be’ support now. GSK. Oddly enough I have that symbol written down on my note pad from something I came across recently and don’t recall from where. The Weekly chart is not as convincing as it is still very overbought without that much of a pullback as yet and the stock is a volatile one. As always draw your own conclusions.

    https://stockcharts.com/h-sc/ui?s=GSK&p=D&yr=2&mn=0&dy=0&id=p38241915006&a=658902348

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