Tech Talk for Wednesday October 16th 2019

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Pre-opening Comments for Wednesday October 15th

U.S. equity index futures were lower this morning. S&P 500 futures slipped 5 points in pre-opening trade.

Index futures moved slightly lower following release of September Retail Sales at 8:30 AM EDT. Consensus was an increase of 0.3% versus a revised gain of 0.6% in August. Actual was a drop of 0.3%. Excluding auto sales, consensus was an increase of 0.2% versus no change in August. Actual was a drop of 0.1%.

The Canadian Dollar slipped 0.10 to U.S. 75.64 cents following release of Canada’s September Consumer Price Index at 8:30 AM EDT. Consensus was a drop of 0.2% versus a drop of 0.1% in August. Actual was a drop of 0.4%.

Bank of America gained $0.66 to $30.39 after reporting higher than consensus third quarter revenues and earnings.

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Abbott Labs dropped $2.35 to $79.63 after reporting lower than consensus third quarter revenues.

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United Airlines (UAL $87.88) is expected to open higher after reporting higher than consensus third quarter earnings. The company also raised guidance.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/10/15/stock-market-outlook-for-october-16-2019/

World equity markets moved higher yesterday

North American equity markets were not the only markets moving higher.

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StockTwits released yesterday @EquityClock

JP Morgan $JPM, a Dow Jones Industrial stock moved above $119.44 to an all-time high extending an intermediate uptrend.

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Much of the strength in Dow Industrial Average today can be attributed to strength in UnitedHealth Group $UNH. Nice breakout above $236.46!

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Emerson Electric $EMR, an S&P 100 stock moved above $68.27 on shareholder activist action extending an intermediate uptrend.

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Applied Materials $AMAT, a NASDAQ 100 stock moved above $52.62 extending an intermediate uptrend. Leading the semiconductor sector!

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Semiconductor ETFs $SMH and $SOXX break to all-time highs extending intermediate uptrends. SOXX moved above $220.32 and SMH moved above 123.56.

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Silver stocks and related ETF $SIL are extending intermediate downtrends. SIL moved below $27.85.

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Gold stocks on both sides of the border and related ETFs $XGD.CA $GDX moved below support extending intermediate downtrends. Individual gold stocks breaking support included $ABX.CA $K.CA $WPM.

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Another Gold Equity ETF breakdown! $GDXJ moved below $36.03 extending an intermediate topping pattern.

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European equities and related ETFs breaking intermediate resistance and re-establishing uptrends including $EZU $EWU $EWG $EWI $IEV

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Bank of Nova Scotia $BNS.CA, a TSX 60 stock moved above $75.78 to a two year high extending an intermediate uptrend.

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Commerce Bank $CM.CA, a TSX 60 stock moved above $110.44 setting an intermediate uptrend.

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Restaurant Brands International $QSR.CA, a TSX 60 stock moved below $92.22 extending an intermediate downtrend

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Colgate Palmolive $CL, an S&P 100 stock moved below $68.41 completing a double top pattern.

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Technology SPDRs $XLK moved above $82.52 to an all-time high extending an intermediate uptrend.

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Home Builders ETF $XHB moved above $44.48 extending an interrmediate uptrend

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Verizon $VZ, a Dow Jones Industrial stock moved above $60.37 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 October 15th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for October 15th 2019

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Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for October 15th 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 advanced 6.01 to 65.13 yesterday. It returned to intermediate overbought from intermediate neutral on a move above 60.00.

 

TSX Momentum Barometer

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The Barometer slipped 0.89 to 49.11 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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3 Responses to “Tech Talk for Wednesday October 16th 2019”

  1. Bernie Says:

    More food for thought:

    “High Dividend Strategy Since ’07 Peak

    Summary
    •In a continuation of a recent piece on factor tilt strategies since the 2007 market peak, this article looks at a Low Volatility High Dividend strategy.

    •The S&P 500 Low Volatility High Dividend has outperformed since 2007, beating the market during the drawdown and the subsequent expansion.

    •I believe the combination of Low Volatility and Dividend Payers creates structural alpha versus dividend-seeking strategies alone.

    https://seekingalpha.com/article/4296797-high-dividend-strategy-since-07-peak

  2. Ron/BC Says:

    Bernie
    Every time I read a story like that I make up a chart and find the chart just doesn’t make the point that ETFs like SPHD outperforms SPY. SPY seems to have just about everything one could ask for from what I see on “a chart”. Don’t know what to make of it…………

  3. Bernie Says:

    Ron/BC,

    You’re kinda right, at least on performance since 2012. Since its inception in 2012-10-18 SPHD is up 64.16% in price and 113.93% in total return while SPY is up 104.97% in price and 135.86% in total return. However, that period was all within in the bull market. To its credit SPHD has risen with far less volatility than SPY and likely would have outperformed had it existed before the 2007-09 crash. In his long term analysis author compared SPHD’s and SPY’s underlying indices “S&P 500 Low Volatility High Dividend Index vs the S&P 500 Total Return Index. The numbers clearly favour SPHD’s index long term. You might actually like SPHD Ron. As stated its price action is far less volatile than the broad U.S. market and it sports a decent yield (3% currently) with a growing dividend. Its characteristics suggest you wouldn’t have to watch it as closely either. If you couple it with an equal sharing of TLT your mix would probably weather everything short of an asteroid wipeout…lol. I’m exaggerating here, but not by much.

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