Tech Talk for Friday May 17th 2019

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Pre-opening Comments for Friday May 17th

U.S. equity index futures were lower this morning. S&P 500 futures were down 22 points in pre-opening trade. Trade war concerns between China and the U.S. were elevated overnight.

Today is triple witching day when May equity and index options and futures last trade. Look for volumes in U.S. equity markets to be higher than average.

Applied Materials gained $0.79 to $42.45 after reporting higher than consensus quarterly results.

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NVidia slipped $0.79 to $159.40 after lowering guidance.

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Deere (DE $145.99) is expected to open lower after reporting lower than consensus fiscal second quarter earnings. The company also lowered guidance.

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Cray gained $4.89 to $34.70 after Hewlett Packard Enterprises offered to buy the company at $35 per share. Value of the offer is $1.3 billion.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/05/16/stock-market-outlook-for-may-17-2019/

Note seasonality charts on the DAX Index and Housing Starts.

U.S. Healthcare Comment by Don Vialoux

Following is a link to GlobeInvestors released this morning:

https://www.theglobeandmail.com/investing/markets/etfs/article-its-the-right-time-to-jump-into-the-us-healthcare-sector-here-are/

Next Tech Talk report

To be released on Tuesday May 21st. Monday is a holiday for markets in Canada.

StockTwits released yesterday @EquityClock

Canada #Manufacturing Sales up 15.3% (NSA) in March, stronger than 13.8% increase that is average for the month. $MACRO #CDNecon #CAD

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Philadelphia #Manufacturing Business Outlook Index coming in at +24.1 for May, stronger than the +17.1 that is average for the month. $MACRO #Economy

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US #Housing Starts up 19.1% (NSA) in April, more than double the 8.9% increase that is average for this time of year. $MACRO #Economy

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Consumer Staples SPDRs $XLP moved above $57.82 to an all-time high extending an intermediate uptrend.

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Technical action by S&P 500 stocks to 10:00: Quietly bullish. Intermediate breakouts: $PG (a Dow Jones Industrial stock) $LEN. No breakdowns.

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After 10:00 AM EDT, breakouts included VTR, INFO and KO. Breakdown: IPGP.

U.S. REIT ETF $IYR moved above $88.23 to an all-time high extending an intermediate uptrend.

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Canadian Pacific $CP.CA $CP, a TSX 60 stock moved above $306.13 Cdn. and $227.53 U.S. to an all-time high extending an intermediate uptrend.

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George Weston $WN.CA, a TSX 60 stock moved above $102.38 extending an intermediate uptrend

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Observation

Pending regime change?

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Trader’s Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for May 16th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for May 16th 2019

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Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for May 16th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Keith Richard’s Blog

Keith asks: “China trade negotiations also a trading opportunity”? Following is a link:

https://www.valuetrend.ca/china-trade-negotiations-also-a-trading-opportunity-for-the-stock-market/

 

S&P 500 Momentum Barometer

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The Barometer gained 6.60 to 51.20 yesterday. It remains intermediate neutral and trending down despite the gain yesterday.

 

TSX Momentum Barometer

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The Barometer gained 7.14 to 53.36 yesterday. It remains intermediate neutral and trending down despite the gain yesterday.

 

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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One Response to “Tech Talk for Friday May 17th 2019”

  1. Ron/BC Says:

    Rick
    Thanks for the interesting $VIX chart yesterday. As I said I don’t usually watch it much as it is erratic and has a serious character flaw. When the $SPX is trending steadily without a lot of strong moves up or down the $VIX goes sideways and that is the one thing that makes most indicators whipsaw especially indicators based on moving averages. But all indicators have character flaws so one must just deal with them and expect them to whipsaw to some degree. What I did to ‘smooth out’ the buy and sell signals is using a 20ema and 50ema on the Daily chart. Here is a two year chart of the $VIX with those two moving averages and a 20,50,1 MACD below to confirm the signals. Seems to be a good signal provider without a lot of whipsaws and fairly timely. As we all know nothing is perfect. I also added your 10,20,5 MACD below to compare also. I see the 20ema has just crossed above the 50ema giving a $SPX sell signal. It may just cross back down again as some indicators do. But it is what it is and shouldn’t just be ignored as it does have a fairly good track record and 2nd guessing indicators with good track records can be hazardous to one’s wealth.

    https://stockcharts.com/h-sc/ui?s=%24VIX&p=D&yr=2&mn=0&dy=0&id=p09660807303&a=665761377

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