Tech Talk for Tuesday August 6th 2019

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Pre-opening Comments for Tuesday August 6th

U.S. equity index futures moved higher this morning. S&P 500 futures advanced 24 points in pre-opening trade. Index futures responded to news that China has taken steps to stabilize the Yuan relative to the U.S. Dollar.

International Flavours and Fragrances (IFF $141.47) is expected to open lower after the company lowered guidance for the remainder of 2019.

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Bausch Health added $0.65 to U.S. $23.97 after the company raised its revenue and earnings guidance.

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Mosaic dropped $0.96 to U.S. $22.64 after reporting lower than consensus second quarter revenues and earnings.

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Ford added $0.17 to $9.40 after Morgan Stanley upgraded the stock to Overweight from Equal Weight.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/08/03/stock-market-outlook-for-august-6-2019/

Note seasonality chart on U.S. Non-farm Payrolls.

 

Observations

Expect Canadian equities to open sharply lower this morning. A proxy for the TSX Composite Index that traded yesterday is Canada iShare $EWC. It dropped 1.85% yesterday.

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One of the weakest sectors in the U.S. yesterday was Energy. Energy iShares dropped below support at $58.24 extending an intermediate downtrend.

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Oil Services were the weakest subsector in the Energy sector.

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StockTwits released yesterday @EquityClock

Home Depot $HD, a Dow Jones Industrial stock completed a double top pattern on a move below$210.38.

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Boeing $BA, a Dow Jones Industrial stock moved below $330.67 extending an intermediate downtrend.

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Citrix Systems $CTXS, a NASDAQ 100 stock moved below $92.78 extending an intermediate downtrend.

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Advanced Micro Devices $AMD, a NASDAQ 100 stock moved below $28.67 completing a double top pattern.

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PayPal $PYPL, a NASDAQ 100 stock moved below $103.96 extending an intermediate downtrend.

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Gold ETN $GLD moved above $136.63 to a six year high extending an intermediate uptrend. Gold equities and related ETFs $GDX $GDXJ quickly responded by breaking higher.

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Editor’s Note: The Gold Bug Index was notably stronger

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China Large Cap iShares $FXI moved below$39.50 extending an intermediate downtrend.

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Editor’s Note: China related Hong Kong ETF EWH broke below $24.05 to a seven month low completing a double top pattern.

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More copper stock breakdowns related to weakness in copper prices! $SCCO

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Editor’s Note: Base Metal ETN (copper, zinc, aluminum) dropped to a 32 month low.

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Chile iShares $ECH moved below $37.05 extending an intermediate downtrend. Chile’s economy is highly sensitive to the price of copper.

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Vietnam ETF $VNM moved below $15.88 setting an intermediate downtrend.

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Germany iShares $EWG moved below $26.07 completing a double top pattern.

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Editor’s Note: Hardest hit equity markets were emerging markets: EEM

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Steel ETF $SLX moved below $35.01 extending an intermediate downtrend.

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eBay $EBAY, a NASDAQ 100 stock moved below $38.92 completing a topping pattern.

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The VIX Index moved above 23.38% extending an intermediate uptrend. $VIX

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Trader’s Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for August 5th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for August 5th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for August 5th 2019

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Green: Increase from previous day

Red: Decrease from previous day

Technical Scoop

Thank you to David Chapman and www.EnrichedInvesting.com for the link to the following weekly report:

http://enrichedinvesting.com/wp-content/uploads/2019/08/Cut-party-cold-water-volatility-return-currency-wars-negative-yield-widened-spreads-job-anomalies.pdf

 

S&P 500 Momentum Barometer

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The Barometer plunged to 26.40 from 48.60 yesterday. It dropped from intermediate neutral to intermediate oversold on a move below 40.00, but has yet to show signs of bottoming.

 

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 Tuesday August 6th 2019”

  1. Larry/ON Says:

    Trump has Larry Kudlow out shovelling out the bogus claim that the Chinese economy is crumbling. The comedy part of the Trump Admin’s torrent of misinformation is the timing of the “Currency Manipulator” label on the Chinese Government. The Chinese had been supporting their currency not devaluing it. The Chinese decided for one day to stop supporting it and let market forces take it lower which is contrary to US interests. The Trump Admin promptly calls them manipulators. Larry Summers is now on CNBC calling Kudlow’s China comments “ludicrous.” The Trump Admin is run by a bunch of charlatans treating the investment community like idiots.

  2. Ron/BC Says:

    Larry/ON

    I had to laugh when Trump appointed Larry Kudlow as his economic advisor or whatever his handle is now. He used to be a guest on CNBC when I used to watch it religiously. He only had a one line answer for everything and that was “DRILL,DRILL,DRILL”. So I guess he’s got a single mindset job now that is suited to Trump.

  3. Larry/ON Says:

    RON/BC

    You were right with your long-term chart a couple of weeks ago showing the downturns that occurred soon after the same amount of overextension. It’s amazing how something inevitably happens to give the market the excuse it needs to sell-off. Art Cashin on CNBC made obvious point this morning that the close today is really important. If it’s negative we are in for more downside but I think if that happens the market will bottom before the May low. Lots of sideline money wants in sooner or later. It’s been a good day for trading with big swings.

  4. Ron/BC Says:

    Here is the $TSX XIU.to. Price has been trapped between $24 and $25 since April and now price is back to $24 support as well as its rising 200ema and very oversold again. As always, draw your own conclusions.

    https://stockcharts.com/h-sc/ui?s=XIU.TO&p=D&yr=2&mn=0&dy=0&id=p53356485680&a=673066204

  5. Larry/ON Says:

    High Close? – With 37min to go we could be setting up for positive follow through tomorrow. There is usually fade in the last hour but as long as we hold onto most of the gains it’s looking good.

  6. Paula Says:

    Ron/BC,
    I was surprised to hear that you used to watch CNBC religiously. I had the impression that you tuned out all that noise. Kudlow, and for that matter Kramer, when they had their show together, I could not stand either of them – still can’t. If CNBC is on, it is always on mute and I only turn the sound on when there is a technical analyst like Carter Worth, Mark Newton or Katie Stockton. I almost always record the shows I am interested in and watch them on fast forward so I can filter out all the noise. I used to write down what the technical analysts said and check later to see if they were right. Often they weren’t, just like everybody else. I don’t write down so much lately since it seems that I can anticipate what they are going to say.

  7. Ron/BC Says:

    Paula
    Can’t argue with your post.
    I used to do the same thing with the TV on mute and watch the numbers on the screen and if an interesting analyst came on I’d see what he had to say. Haven’t bothered with CNBC for years now as I can see the ticker on BNN to glance at while I work on charts. I rarely watch the analysts on BNN as they will just say the obvious and talk the talk. But now and again I will listen to some brand named person if he has charts to show. Can’t stand the call in questions and answers as I hate the stories. The chart is the only thing that will tell the tale. I guess everyone just has to realize all these guys need to make a living doing this and you just can’t take it too seriously. They have to say something that most will consider at least interesting.

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