Tech Talk for Tuesday October 29th 2019

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Pre-opening Comments for Tuesday October 29th

U.S. equity index futures were lower this morning. S&P 500 futures were down 2 points in pre-opening trade.

Alphabet dropped $9.98 to $1,279.00 after reporting lower than consensus third quarter earnings.

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Shopify plunged $26.04 to $298.39 after reporting a surprising third quarter loss.

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AT&T (T $38.49) is expected to open higher after Oppenheimer raised its target price on the stock to $47 from $41.

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General Motors added $0.56 to $37.20 after reporting higher than consensus third quarter revenues.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/10/28/stock-market-outlook-for-october-29-2019/

Note seasonality chart on the U.S. Industrial sector.

 

Observations

Several broadly based U.S. indices moved above intermediate resistance including the Dow Jones Transportation Average on a move above 10,856.73 and 10,876.38

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Technology led the advance in U.S. equity markets yesterday. Technology SPDRs $XLK broke to an all-time high on a move above $82.52 extending an intermediate uptrend.

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Lumber moved above $413.60 extending an intermediate uptrend. Lumber stocks quickly followed.

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Tis the season for forest product stocks to move higher!

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Natural gas prices popped on a NOAA weather forecast predicting colder than average weather in the U.S. mid-west into the end of the year. Denver had its second October snow storm over the weekend.

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Seasonal influences are positive for natural gas to near the end of the year.

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Interest sensitive securities (e.g. U.S. Utilities and Government Bonds) came under technical pressure yesterday prior to news from the Federal Reserve on Wednesday. Ditto for the Canadian bond market!

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Interesting reversal for Bitcoin!

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International equity indices and their related ETFs trading on U.S. exchanges continue to move higher. Nice breakouts yesterday by Mexico, France and Italy.

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StockTwits released yesterday @EquityClock

S&P 500 Index $SPX opened above 3,027.98 to an all-time high extending an intermediate uptrend

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NetApp $NTAP, a NASDAQ 100 stock moved above $56.48 completing a base building pattern.

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Alphabet $GOOGL, a NASDAQ 100 stock moved above $1,268.39 extending an intermediate uptrend. Testing its all-time high at $1,296.97

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Microsoft $MSFT, a Dow Jones Industrial stock moved above $142.37 to an all-time high extending an intermediate uptrend. The company won a $10 billion Defense contract.

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Russia ETF $RSX moved above $24.18 to a 5 year high extending an intermediate uptrend.

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Equally weighted S&P 500 ETF $RSP moved above $109.71 and $109.72 to an all-time high extending an intermediate uptrend.

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Europe iShares $IEV moved above $44.67 extending an intermediate uptrend.

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Honeywell $HON, an S&P 100 stock moved above $172.73 re-establishing an intermediate uptrend.

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Capital One $COF, an S&P 100 stock moved above $94.73 re-establishing an intermediate uptrend.

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Bank of Montreal $BMO.CA, a TSX 60 stock moved above $98.38 setting an intermediate uptrend.

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ManuLife $MFC.CA, a TSX 60 stock moved above $24.71 extending an intermediate uptrend.

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BMO Emerging Markets $ZEM.CA moved above $19.80 setting an intermediate uptrend.

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Shaw Communications $SJR, a TSX 60 stock moved above $20.14 U.S. setting an intermediate uptrend.

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Canadian Government Bond ETF $XGB. moved below $22.06 completing a double top pattern.

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Pacific ex Japan ETF $EPP moved above $46.20 resetting an intermediate uptrend

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QQQ Trust $QQQ moved above $195.16 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 28th 2019

spx oct 28

Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for October 28th 2019

crb oct 28

Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for October 28th 2019

xlk oct 28

Green: Increase from previous day

Red: Decrease from previous day

 

Technical Scoop

Thank you to David Chapman and www.EnrichedInvesting.com for access to the weekly Technical Scoop. David offered the following introduction to his report:

Markets continue to "chug" higher and some international markets are breaking out. Are the markets about to soar? Could be. The driving force could be QE. We continue to wonder what is going on in the U.S. as the Fed continues its buying spree in the repo market. But it could be the fuel and of course QE continues in the EU and Japan and even to some extent in China.

This week marks the 90th anniversary of the famous 1929 stock market crash. Famous trader W.D. Gann had interesting things to say about the number 90. We take a brief look.

This week is rate decision week for the Fed, BofC and BOJ. Also U.S. employment numbers are out on Friday.

Markets moved higher but not everyone is quite on the same page. What does it mean? Will they all eventually move in sync? As discussed in our Chart of the Week (page 30), while the S&P 500 has been making new highs, the signs are there that suggest massive distribution is going on even as it appears others are prepared to break out to the upside.  Our recession watch spreads (page 21) have turned positive. What does that mean? Gold "chugged" higher but so did the U.S. dollar.

Following is a link to the full report:

http://enrichedinvesting.com/wp-content/uploads/2019/10/Market-chug-international-break-out-QE-fuel-90th-anniversary-distribution-signs-positive-spread.pdf

 

S&P 500 Barometer

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The Barometer slipped 1.00 to 65.53 yesterday. It remains intermediate overbought.

 

TSX Barometer

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The Barometer added 0.45 to 42.79 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 Tuesday October 29th 2019”

  1. KC Says:

    Ron/BC,

    Not sure if you’ve commented on BCE.TO in recent weeks. I have not had time to keep up with comments here. Would really appreciate your thoughts on BCE.TO at this time. As well, Id love to hear your TA on Telus and compare.

    Hope your island isnt as cool as the Atlantic yet! Did you buy another property ?

    thanks,
    KC

  2. Ron/BC Says:

    KC
    BCE.to sold off and actually broke support at 61.98 and dropped to 60.64. It even broke its uptrendline. I’m surprised as it is a Tech stock apparently and Tech has been doing well. Ex: XLK. Maybe some hot shot at a Financial institution bad mouthed it and was short. Always some story. But the chart needs to see price clear and hold above 62 to get back on track. The major moving averages are still ok but falling and need to flatten out and reverse up again. But each one is above the other still. The RSI 8 is very oversold but needs to clear 30 again for a buy signal. But most of all price needs to re-clear 62 and hold to be out of the woods.

    T.to is charting out the same pattern as BCE.to as price broke below important support at 46.50 but price with T.to is bouncing off its uptrendline and is trapped between them. Same scenario as price needs to re-clear 46.50 and hold above to be out of the woods. It ‘appears’ that interest rates have bottomed and consolidated at their lows and are have started to rebound for some time now according to the U.S.10 year yield chart. That might explain things as the charts do suggest this scenario.

    Weather has been nice in Victoria for some time now with the rains ending for now and sunshine most days. Still nippy in the morning though and the golf courses have seen frost in some areas. But my partner and I don’t go golfing until around noon so like yesterday the temperature was 10 to 11 degrees C. all day which was nice. But the rain will come again at some point and make outside activities soggy. And it can get windy here as well this time of year. We were planning to to to Palm Springs in January but with the wild fires effect on that entire U.S. coast isn’t likely a good idea.

    And yes,I sold my condo and did exceptionally well and bought another at a good price just a few KM away. I move Friday so have been packing etc for awhile now.

    https://stockcharts.com/h-sc/ui?s=BCE.TO&p=D&yr=2&mn=0&dy=0&id=p91968677673&a=673066205

    https://stockcharts.com/h-sc/ui?s=T.TO&p=D&yr=3&mn=0&dy=0&id=p28144162007&a=695631697

  3. bruce Says:

    gary
    Armstrong has a new market comment……would you mind sharing it with us please?…

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