Tech Talk for Wednesday June 19th 2019

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Pre-opening Comments for Wednesday June 19th

U.S. equity index futures were mixed this morning. S&P 500 futures were unchanged in pre-opening trade. Investors are waiting for news from the U.S. Federal Reserve at 2:00 PM EDT. Consensus calls for no change in the Fed Fund Rate at 2.50%, but guidance toward a reduction later this year.

The Canadian Dollar advanced 0.16 to 74.89 at U.S. 74.75 cents following release of Canada’s May Consumer Price Index at 8:30 AM EDT. Consensus was an increase of 0.2% versus a gain of 0.4% in April. Actual was an increase of 0.4%.

Re-approval of expansion of the Trans Mountain Oil Pipeline late yesterday by the Canadian federal government is expected to have a minimal impact on Canadian equity prices this morning.

Southwest Airlines added $0.20 to $51.90 after raising guidance.

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Adobe gained $12.22 to $289.00 after reporting higher than consensus quarterly earnings.

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U.S. Steel gained $0.67 to 15.25 despite lowering second quarter sales and earnings guidance below consensus.

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EquityClock’s Daily Market Comment

Following is the link:

http://www.equityclock.com/2019/06/18/stock-market-outlook-for-june-19-2019/

Note seasonality chart on U.S. Housing Starts

 

StockTwits released yesterday @EquityClock

US #Housing Starts up 0.7% (NSA) in May, weaker than the 4.5% average increase for this time of year. $MACRO #Economy

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Home Builders ETF $XHB moved above $41.58 extending an intermediate uptrend.

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Gold Miners ETF $GDX moved above $23.70 extending an intermediate uptrend.

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Constellation Software $CSU.CA, a TSX 60 stock moved above $1226.06 to an all-time high extending an intermediate uptrend.

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Technical action by S&P 500 stocks to 10:00: Bullish. Intermediate breakouts: $GILD $FRT $SLG $VRTX $FLR. No breakdowns.

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Editor’s Note: After 10:00 AM EDT, intermediate breakout: BA, intermediate breakdown: SLG.

Canada #Manufacturing Sales down 3.7% (NSA) in April, better than the 5.2% decline that is average for the spring month. $MACRO #Economy

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Agriculture ETF $MOO moved above $64.75 extending an intermediate uptrend.

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Toronto Dominion Bank $TD.CA, a TSX 60 stock moved above $76.73 extending an intermediate uptrend.

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Laurentian Bank $LB.CA moved above $45.50 completing a long term reverse Head & Shoulders pattern.

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Trader’s Corner

 

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for June 18th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for June 18th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for June 18th 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 added 7.82 to 64.13 yesterday. It changed to intermediate overbought from intermediate neutral on a move above 60.

 

TSX Momentum Barometer

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The Barometer added 2.55 to 54.04 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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7 Responses to “Tech Talk for Wednesday June 19th 2019”

  1. Ron/BC Says:

    $WTIC continues to trade under $55 resistance. One can see by the chart the importance of $55 whether above or below this price point. Price needs to clear $55 to suggest a reversal back up again. Overlaid is USO that trades like $WTIC.

    https://stockcharts.com/h-sc/ui?s=%24WTIC&p=D&yr=3&mn=0&dy=0&id=p47461534698&a=579408614

    https://stockcharts.com/h-sc/ui?s=%24WTIC&p=W&yr=20&mn=0&dy=0&id=p24262729167&a=579408363

  2. Paul Says:

    Ron/BC,
    Could you give your view of GSY.to ? After a good run I just sold at $54 with the thought of getting back in lower.
    Also if you have time could you assess FFH.to ?
    Thank you, Paul

  3. Ron/BC Says:

    Paul
    Not at a computer now. Will post them later.

  4. Larry/ON Says:

    David Rosenberg Spooky Story Watch – Not content with normal definitions of a recession as two consecutive quarters of negative GDP growth he got frustrated that we are not yet in recession and issued his own definition and declared that the US is already in recession and that the Fed will cut rates to zero. Sorry David no rate cut today.
    Meanwhile, the U.S. economy expanded at an annualized rate of 3.2 per cent in the first quarter.

    https://www.bnnbloomberg.ca/u-s-already-in-recession-fed-will-cut-rates-back-to-zero-rosenberg-1.1273419

  5. Ron/BC Says:

    Paul
    GSY.to is breaking out above its double top of $53.77 which tends to be bullish but there are several negative warnings on the chart. The RSI 8 is overbought and showing a negative divergence on this latest new high. Also price is about $10 above its 200ema. Note the other times price has also been that same distance above or below its 200ema in 2017 and 2018 and 2019,you saw a price reversal. And for what appears to be a strongly trending stock there is not a lot of volume meaning not a lot of interest in the stock so is thinly traded causing sharp price action. If I really wanted the stock for personal reasons I’d perhaps buy it on a pullback to its uptrendline and that would be the line in the sand to exit if broken. That would be a good compromise to get long again with a small loss on a break of that uptrendline. But I definitely would not chase the stock here.

    https://stockcharts.com/h-sc/ui?s=GSY.TO&p=D&yr=3&mn=0&dy=0&id=p00993349093&a=671764951

  6. Ron/BC Says:

    Paul

    FFH.to. You’d need very deep pockets to trade this. But price is in a wide channel between $535 and $750. Price resistance is $662 as you can see the significance of this price point on the chart. That price is also the Fibonacci 50% retracement level from the 2018 high to the selloff low. Price would need to clear $662 to suggest a run to the top of the channel which would only be $100 higher. Price has been having higher lows which is positive but needs to either clear $662 or test that uptrendline again with another higher high. Not a lot of volume on the stock either meaning not much interest in the stock. Stocks that are in channels tend to be best traded from either the top or bottom of the channel. Trading the middle tends to end up whipsawing one.

    https://stockcharts.com/h-sc/ui?s=FFH.TO&p=D&yr=5&mn=0&dy=0&id=p27494084799&a=671767291

  7. Paul Says:

    Re: 5 & 6; Thank you very much Ron for your great charts and thoughful explanations. I really do appreciate your time and efforts to educate and support.

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