Tech Talk for Friday July 5th 2019

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Pre-opening Comments for Friday July 5th

U.S. equity index futures were lower this morning. S&P 500 futures were down 4 points in pre-opening trade.

Index futures were virtually unchanged following release of the June Employment Report released at 8:30 AM EDT. Consensus for June Non-farm Payrolls was 160,000 versus downwardly revised 72,000 in May. Actual was 224,000. Consensus for the June Unemployment Rate was unchanged from May at 3.6%. Actual was an increase to 3.7%. Consensus for June Hourly Earnings was an increase of 0.3% versus a gain of 0.2% in May. Actual was an increase of 0.2%

The Canadian Dollar dropped 0.29 to U.S.76.29 cent following release of Canada’s June Employment Report. Consensus for June Employment was an increase of 9,900 versus a gain of 27,700 in May. Actual was a drop of 2,200. Consensus for June Unemployment Rate was 5.5% versus 5.4% in May. Actual was 5.5%.

Qualcomm dropped $2.18 to $74.45 and Micron fell $0.57 to $39.02 after Samsung reported a significant decline in demand for memory chips.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/07/04/stock-market-outlook-for-july-5-2019/

StockTwits released yesterday @EquityClock

Toronto Dominion Bank $TD.CA, a TSX 60 stock moved above $77.79 to an all-time high extending an intermediate uptrend.

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Air Canada $AC.CA moved above $41.47 to an all-time high extending an intermediate uptrend.

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Trader’s Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for July 4th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for July 4th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for July 4th 2019

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Green: Increase from previous day

Red: Decrease from previous day

TSX Momentum Barometer

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The Barometer slipped 0.14 to 66.24 yesterday. It remains intermediate overbought.

 

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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17 Responses to “Tech Talk for Friday July 5th 2019”

  1. Larry/ON Says:

    “Good News Is Bad News” (for equities) – Great US job creation report putting a question mark on the next fed rate cut. 50bps now off the table but 25bps still likely. The slight increase in the US unemployment rate shows new participants joining the labour force. A certain economist at Gluskin Sheff has been promoting the idea that the US is already in recession and interest rates will be brought to zero. His one piece of evidence was a decline in US manufacturing. Manufacturing makes up 11.6% of US GDP.

  2. Larry/ON Says:

    GOOGL- Showing real signs of new money buying the stock. Has been outperforming QQQ for the last week and at the moment is up today in a down market. I think odds are it breaks through major resistance at 1125 200day MA and the 50day at 1131 setting up a run to test 1200 and perhaps eventually a run to fill the gap up to 1280-1300. It might take a couple of trading days before it breaks through. Tremendous upside potential

    XLF – Setting new YTD high. It’s supportive of a rising market.

  3. Mary Says:

    Larry/ON

    May I please have your thoughts on Cannabis stocks. They seem be stuck in a dead zone. Is now to the time to add more. Appreciate.

  4. bruce Says:

    ana

    Nice call last night……

  5. Larry/ON Says:

    Re 3. Hi Mary. I had a position in WEED and I threw in the towel at the market open when they released their earnings. Maybe long-term there is a case to be made but the chart looks awful now for that stock which is the go-to for cannabis. Linton was fired and Constellation is making changes at Canopy to focus on profitability rather than expansion. Once in a while I get burned on something like this and I remind myself to stick with stocks that are more of the long-term no-brainer variety like MSFT, GOOGL, AAPL, AMZN, etc.

    Today is a low-volume day. There seems to be some buy on the dip going on.

  6. JP/BC Says:

    Ana: As Bruce referenced in #4, nice job on shorting the market.

  7. Ron/BC Says:

    For those that have a chunk of cash looking for a place to park it temporarily EQ Bank is paying 3% for a 3 month GIC and 2.30% for cash that is available all the time. Tangerine isn’t paying more than 2% now.

  8. Larry/ON Says:

    It looks like this market might actually end the day higher. Melt up?

  9. Mary Says:

    Larry/ON

    Those stocks you mentioned above goes up almost everyday. I have some on my “Watchlist” including FB, CRM etc…greeeeeen everyday. Nice turn around in the market.
    Thanks for your thoughts on Cannabis stock, dead money for a while.

  10. Ron/BC Says:

    GDX has been in a sideways channel for 3 years and is now trying to breakout above the top of that channel at $25.40 area. Price needs to clear AND hold above this level to suggest a solid uptrend has begun. Technicals do look promising.

    https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=4&mn=0&dy=0&id=p48853027861&a=673066318

  11. Ana Says:

    #4. bruce,

    Thank you! Did you jump into a $NATGAS trade? That one did really well!

  12. Ana Says:

    #6. JP/BC

    Thank you! But did not stay down.

  13. Ron/BC Says:

    The Canadian dollar $CDW broke out,pulled back to the breakout point and has rallied to resistance at the late January high of 76.52. Price needs to clear and hold above this level to suggest a rally to next resistance at 78.24. The breakout above the top of its 18 month channel in early June was a significant change in trend so odds favour the upside. BUTTTTTTTTTTT resistance is resistance and each resistance level must be cleared to continue higher.

    https://stockcharts.com/h-sc/ui?s=%24CDW&p=D&yr=2&mn=3&dy=0&id=p00934255097&a=673066412

  14. bruce Says:

    ana

    i traded arx a few times but am currently out…..this heat wave in the east and in europe is giving nat gas a shot in the arm…..oddly don has a negative seasonal reading for it….

  15. Larry/ON Says:

    Re.13 – This CAD rise takes a bit of the shine off of holding US equities. If you hold them you want to borrow in USD. RSI has been hovering around 70 so maybe a pullback? Oddly, I’m thinking about $CAD in terms of electoral politics. The opposition can’t criticize the Libs for a low dollar as a negative statement about the Cdn economy. It’s roughly the same level now than when they came into office. If CAD continues to strengthen it makes the Libs look better. I can’t say that I like the choice that is on offer.

  16. Ana Says:

    Mary and Larry/ON

    I saw this article on the Cannabis Stocks. Maybe it will give you some insight.

    https://www.investing.com/analysis/could-cannabis-stocks-be-following-cryptos-trajectory-200436312

  17. Mary Says:

    Ana
    Thanks for the Cannabis article. I just have to wait it out depending on my patience or dump it.

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