Tech Talk for Thursday June 13th 2019

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Pre-opening Comments for Thursday June 13th

U.S. equity index futures were higher this morning. S&P 500 futures were up 9 points in pre-opening trade.

Index futures were virtually unchanged following release of Weekly Jobless Claims at 8:30 AM EDT. Consensus was 217,000 versus 219,000 last week. Actual was 222,000.

WTI crude oil jumped $1.83 to $52.97 per barrel after two tankers were attacked near the Strait of Hormuz.

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Lululemon gained $9.11 to $180.00 after reporting higher than consensus first quarter sales and earnings. The company also raised guidance.

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Lennar gained $1.39 to $53.48 after Wedbush upgraded the stock to Outperform from Neutral.

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Target (TGT $88.26) is expected to open higher after increasing its dividend

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/06/12/stock-market-outlook-for-june-13-2019/

Note seasonality charts on Crude Oil, Crude Oil Days of Supply and the Consumer Price Index

 

StockTwits released yesterday @EquityClock

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

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Editor’s Note: After 10:00 AM EDT, intermediate breakout included MRK and breakdown included RTN.

Johnson & Johnson $JNJ, a Dow Jones Industrial stock moved above $141.36 extending an intermediate uptrend.

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US Consumer Price Index #CPI up 0.2% (NSA) in May, slightly weaker than the 0.3% increase that is average for the spring month. $MACRO #Economy

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Cascades $CAS.CA moved above $9.72 extending an intermediate uptrend.

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Merck $MRK, a Dow Jones Industrial stock moved above $83.85 to an all-time high extending an intermediate uptrend.

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Power Corp $POW.CA, a TSX 60 stock moved below $27.42 extending an intermediate downtrend.

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Power Financial $PWF.CA moved below $29.58 extending an intermediate downtrend.

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Inter Pipeline $IPL.CA moved below $20.16 setting an intermediate downtrend.

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Trader’s Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for June 12th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for June 12th 2019

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Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for June 12th 2019

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Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

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The Barometer slipped 2.20 to 54.31 yesterday. It remains intermediate neutral.

 

TSX Momentum Barometer

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The Barometer added 0.63 to 49.58 yesterday. It remains intermediate neutral.

 

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 Thursday June 13th 2019”

  1. KC Says:

    Hello Ron/BC,

    I have not been following the news about CAE, however I have keep up with the chart and noticed a bit of a drop below supports and uptrend lines. Would appreciate your thoughts on this one, I’ve been waiting to jump into it for a while now.

    Thanks,
    KC

  2. rick Says:

    SPX in January 2018 high = 2872
    SPX today , after 17 months = 2887 = basically only 0,5 % higher in 17 months !
    maybe is time for SPX to move higher after 17 months of stagnation ?
    Those 500 companies made a lot of profits in those 17 months resulting in dividends + buybacks .
    Majority of dividends receivers are buying with DRIP even more shares = IF investors buybacks are OK , why companies buybacks are not OK ?
    Time for SPX to move higher ?
    http://schrts.co/YbIYyqjF

  3. Ron/BC Says:

    KC

    CAE had some big news obviously in mid May looking at the high volume on a low volume stock plus the gap up. (I don’t know or care what that was) Price is now in a tight range and investors are waiting for something to be resolved and only the big boys will have the inside track on that. Watch for a big increase in volume and price direction to suggest what that news might be. But the bottom line is this is a very explosive chart pattern and I wouldn’t take it lightly if you own a lot of it.

    https://stockcharts.com/h-sc/ui?s=CAE&p=D&yr=2&mn=0&dy=0&id=p93923905467&listNum=1&a=670651493

  4. rick Says:

    The market has 2 enemies .
    First is the FED.
    FED has this wrong impression that the economy is going well .
    Actually only a few big companies are doing well .
    The fed funds yield is way to high , well above 10 year bonds yield .
    The curve yield is inverted signaling future recession .
    It does not matter why is inverted .For example Foreign funds buying US 10 year bonds for positive yield for example ( in many countries , Japan , europe , germany , switzerland , sweden , the yield for 10 year bond is negative or close to zero )
    Banks profits need a positive yield curve .
    Banks profit = 10 year yield minus fed funds yield .
    If the yield is negative banks will not make profit .
    So why take a risk by lending money for no profit ?
    The investors will not risk money without a chance to make a profit so banks will not do that either .
    Without credit from banks economy will go down .
    Just look at this chart for New York stock exchange index .
    There is no AAPL, GOOGL, AMZN , MSFT , FB, CSCO , INTC ,NFLX inside the index .
    The result = minus 6 % in 17 months !
    http://schrts.co/cMxEzMsS
    The second enemy is “the politicians “.
    The congress is investigating and want to brake exactly the companies that are doing well : FB , AAPL , GOOGL , AMZN
    https://www.cnbc.com/2019/06/10/congressional-hearing-takes-on-antitrust-behavior-among-digital-giants.html
    This is why the market is stalled .
    FED and politicians .
    NOT tariffs .
    Look at this article from Forbes : https://www.forbes.com/sites/kenrapoza/2019/03/26/heres-how-much-money-the-government-is-making-off-chinese-tariffs/#747f65397b7a
    USA will get 55 billion in tariffs in 2019 up from 35 billions in 2018 .
    In a country with 23 trillions debt , an additional 1 trillion every year , that is quite a small amount .
    The US consumer , who actually pay that tariff tax , will not be affected too much.
    So tariffs = just noise .
    FED is affecting the economy .( and the other idiots )

  5. rick Says:

    In a low yield environment the banks are not doing well .
    In Europe the yield curve is slightly positive and very , very small .
    the result ?
    look at this ETF for European financials .
    http://www.tickertech.com/cgi/returns.mpl?symbol=SPY&smonth=01&sday=01&syear=1995&emonth=06&eday=13&eyear=2019&compareto=other&other=eufn

    In 9 years = SPY 214 % return
    EUFN 9 % return
    The return = actually some dividends because the price dropped from 22.50 to 18.46 in 9 years = total disaster in European banks .
    What a negative yield curve will do to US banks ? and to economy ?

  6. Ma Says:

    Hello Everyone

    I was wondering if anyone is knowledgeable about Term 100 Insurance vs Universal Life Insurance. Can you please let me know which you think is best for someone over 60 years. Thanks.

  7. bruce Says:

    the AAII sentiment survey for the week ending June 12th…….they say “optimism rebounded but still remains unusually low”…. 26.8 39.0 34.2

  8. bruce Says:

    Gary/Sherri

    Armstrong has posted another private blog this morning…….Gold and the summer rally….could you please share it with us?……tu…

  9. Gary Says:

    Bruce #8
    The Summer rally for gold has come on the back of stories that the anti-US governments have been buying gold and replacing their dollar reserves. The news has had an impact, but it is only the anti-US block like Russia. This is what we see as a prelude to the problems ahead on the monetary system reform coming in 2021.

    We are still looking at the same general level. The Weekly Bullish stands at about 1365.00 and the Monthly remains at the 1362.50 level. This week we had a directional change and a turning point next week with ideally the opposite trend thereafter into the week of July 8th. July has been the ideal target for the summer followed by August.

    If the market fails again to get through the 1362.50 level on a monthly closing basis, then we will have one final text of the lows before a bull market will unfold during the next 8.6-year cycle which we show should be an inflationary wave.

    We are preparing a special report on Gold since it is now time.

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