Tech Talk for Thursday May 30th 2019

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Pre-opening Comments for Thursday May 30th

U.S. equity index futures were higher this morning. S&P 500 futures were up 8 points in pre-opening trade.

Equity index futures were virtually unchanged following release of economic news at 8:30 AM EDT. Consensus for revised estimated U.S. first quarter real GDP is 3.0% versus the previous estimate at 3.2%. Actual was 3.1%. Consensus for Weekly Jobless Claims was 215,000 versus 211,000 last week. Actual was 215,000

National Bank (NA $61.89) is expected to open lower after reporting lower than consensus fiscal second quarter earnings.

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Dollar General gained $6.04 to $124.55 after reporting higher than consensus first quarter results.

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Dollar Tree (DLTR $95.32) is expected to open lower after reporting lower than consensus first quarter results. The company also lowered guidance.

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Comcast added $0.53 to $42.45 after Guggenheim upgraded the stock to Buy from Neutral.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/05/29/stock-market-outlook-for-may-30-2019/

 

Observations

Canadian Dollar moved below U.S.73.96 cents extending an intermediate downtrend.

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New hope for Greece?

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U.S. Equity Index Short Term Breakdowns

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StockTwits released yesterday @EquityClock

Technical action by S&P 500 stocks to 10:00: Bearish. No intermediate breakouts. Breakdowns: $BBBY $NKE $BKNG $CLX $GIS $KR $CXO $DVN $NBL $BEN $CMA $GIS $MAC $PLD $SPG $TROW $UNM $ALXN $JNJ $AME $FAST $NSC $ROP $JNPR $TXN $EMN

Editor’s Note: After 10:00 AM EDT, no breakouts. Breakdowns: YUM, CBS, NWL, CAG, PBCT, CAH, UHS, AGN and BAX.

Industrial SPDRs $XLI moved below $72.62 completing a modified Head & Shoulders pattern.

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Consumer Staples SPDRs $XLP moved below $56.19 completing a double top pattern

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Dow Jones Industrial Average ETF $DIA moved below $251.96 completing a Head & Shoulders pattern.

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iShares MSCI Eurozone $EZU moved below $38.17 completing a Head & Shoulders pattern

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Dow Jones Transportation ETF $IYT moved below $179.55 setting an intermediate downtrend.

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S&P Mid-cap 400 SPDRs $MDY moved below $335.14 setting an intermediate downtrend.

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Pharmaceutical ETF $PPH moved below $55.99 extending an intermediate downtrend.

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Corn ETN $CORN moved above $16.67 extending an intermediate uptrend

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Canadian National Railway $CNR.CA $CNI, a TSX 60 stock moved below $121.99 Cdn and $90.68 U.S. completing a double top pattern.

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Bausch Health $BHC.CA, a TSX 60 stock moved below $30.27 setting an intermediate downtrend.

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Gildan Activewear $GIL.CA, a TSX 60 stock moved below $48.96 completing a double top pattern.

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Trader’s Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for May 29th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for May 29th 2019

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Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for May 29th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Keith Richard’s Blog

Keith discusses hedging portfolio risk. Following is a link:

https://www.valuetrend.ca/hedging-portfolio-risk/

 

S&P 500 Momentum Barometer

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The Barometer dropped another 6.00 to 30.80 yesterday. It remains intermediate oversold and trending down.

 

TSX Momentum Barometer
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The Barometer dropped another 7.17 to 37.97 yesterday. It changed to intermediate oversold from intermediate neutral on a move below 40.00 and continues to trend down.

 

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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12 Responses to “Tech Talk for Thursday May 30th 2019”

  1. Larry/ON Says:

    Really interesting to see if the SP500 holds at the 200 day. Semis again are trying to reverse direction after getting into oversold territory on RSI and stochastics. You have to have real nerve to step into the market at this point. I would not have any conviction as a buyer right now.

  2. Larry/ON Says:

    Stock and Bond movements have recently been synchronized “to the minute.” I caught this observation in a market commentary. Bond yields have been falling and equity markets have been falling in sync. Jim Cramer says it has been European cash going into US government bonds. The Euro certainly has been dropping vis a vis USD retesting its’ April low but perhaps getting into an area of long-term support if you look at a five year chart. The Euro may be due for a reversal along with flows into US bonds. That said, when you look at the equity market trying to form a bottom here the exact same thing is happening with bond yields. Looking at all that it could be meaningless in the face of US-China trade conflict.

    https://www.cnbc.com/2019/05/30/bond-king-gundlach-believes-bond-yields-may-have-bottomed-for-now.html

  3. Ron/BC Says:

    Ana
    Here is the USXY chart again with the 3 settings of Keltner Channels. When I used Keltner channels long ago I did like multiple settings which was better than a single setting and better than single Bollenger Bands in my assessment. You can see price enter the 3 lines zone easier. Just thought I’d post this fwiw.

    https://stockcharts.com/h-sc/ui?s=UVXY&p=D&yr=1&mn=0&dy=0&id=p23471474894&a=667400273

  4. bruce Says:

    the AAII figures for the week ending may 29th are still showing extremes…….the bulls are 24.8% vs historical average of 38.5%…….neutral is 35.1 vs 31.9 and the bears have risen 5 points to 40.1% vs the historical average of 30.5%……..

  5. Ron/BC Says:

    Bruce
    Just to add to your sentiment numbers here is the Fear & Greed chart.

    https://money.cnn.com/data/fear-and-greed/

  6. bruce Says:

    tnx Ron
    hard to see this market going too far south while there is so much fear in the market……the public are never allowed to be right……personally i would like to see this market go down……i guess i m just another member of the public…

  7. Ron/BC Says:

    Bruce
    Here is the $SPX Daily chart once again. Price is below the critical 2800 level but still a nose poke without a lot of selling conviction yet. And the RSI 8 and Stochastics are in oversold territory but they were also oversold last October when the major selloff had just got started too. Price ‘must’ re-clear 2800 and soon to suggest a rebound as it’s presently underwater. The lower trend indicators are bearish again but price is in a position where it could reverse back up again with the right circumstances. The Long term Modified MACD below recently crossed down but is still in its early stage of a cross over and a price rebound can reverse it at this point. Bottom line:Price must re-clear 2800 and hold to suggest upside price action.

    https://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=1&mn=0&dy=0&id=p56117417864&a=582707024

  8. bruce Says:

    tnx Ron
    I would like to see the market down but as Bob Farrell said many years ago……..”when all the experts and forecasters agree–something else is going to happen”…….at this time we all see the market forming a head and shoulders break at 2800 and the double tops at 2940…..it cant be this easy……i m keeping my cash in my jeans for now……should be an interesting Monday…..

  9. bruce Says:

    Trump is imposing a 5% tariff on all Mexican goods……the futures markets are not happy…

  10. Ron/BC Says:

    Bruce
    Well perhaps there is a few trades that can be made with limited risk. Here is the ZEB.to bank ETF testing $28 support and very oversold. Looks good for a bounce back. Could see $1.50 bounce and a close below $28 would be the exit. Note how it is outperforming the ZBK.to and the KRE and holding its own against the XSP.to. Just something to consider. And here is also XSP.to that tracks the $SPX. Price is testing the 200ema and like the $SPX is just a nose poke below support. A bounce could be worth getting onboard even with trend indicators somewhat bearish.

    https://stockcharts.com/h-sc/ui?s=ZEB.TO&p=D&yr=4&mn=0&dy=0&id=p87333337106&a=579408450

    https://stockcharts.com/h-sc/ui?s=XSP.TO&p=D&yr=1&mn=6&dy=0&id=p31649063426&a=625697429

    And not to be forgotten is ZQQ.to that is testing price support at $58 and is very oversold to boot. Big test here with these ETFs.

    https://stockcharts.com/h-sc/ui?s=XQQ.TO&p=D&yr=1&mn=0&dy=0&id=p24687573957&a=661540586

  11. bruce Says:

    tnx Ron
    i made it a policy many years ago to never buy on a Friday……..have had my head handed to me too many times Monday morning……..i ve traded the zwb a few times in the past……

  12. Ron/BC Says:

    Bruce
    LOL…..I can relate waking up Monday morning years ago and turning on CNBC and standing there in shock as the market is plunging. I prefer to miss the Monday morning wake up call and it doesn’t bother me to “miss out” as I also miss out on plunges. BUTTTTT there are times it is tempting to do a day trade at such tempting points.

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