Tech Talk for Tuesday December 3rd 2019

Daily Reports Add comments

Pre-opening Comments for Tuesday December 3rd

U.S. equity index futures were lower this morning. S&P 500 futures were down 22 points in pre-opening trade. Index futures responded to comments by President Trump that a U.S./China trade deal may not be finalized until after 2020.

Gold responded to Trump’s comments by adding $9.50 to $1,478.70 per ounce

Bank of Montreal (BMO $100.71) is expected to open higher after reporting higher than consensus fiscal fourth quarter earnings. The Bank also raised its dividend.

clip_image001[1]

Canadian National Railway (CNR $119.75) is expected to open lower after the company lowered its fourth quarter earnings guidance following a recent labour strike.

clip_image002

AK Steel gained $0.11 to $3.00 after Cleveland Cliffs offered to buy the company in a stock exchange deal valued at $3.36. Each share of AK Steel will receive 0.40 shares of Cleveland Cliffs (CLF $8.41)

clip_image003[1]

UnitedHealth Group dropped $1.66 to $278.00 after the company lowered its earnings guidance.

clip_image004[1]

 

EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2019/12/02/stock-market-outlook-for-december-3-2019/

Note seasonality chart on U.S. Construction Spending.

Jon Vialoux on BNN Bloomberg

Jon will be on BNN’s Market Call Tonight at 6:00pm ET on Wednesday, December 4th taking your calls on Technical Analysis and Seasonal Investing.  CALL TOLL-FREE 1-855-326-6266,  EMAIL marketcall@bnnbloomberg.ca,  or TWEET @MarketCall

Observations

The U.S. Dollar Index recorded significant technical weakness yesterday by moving below its 20 and 50 day moving averages. Also, short term momentum indicators (i.e. Stochastics, RSI, MACD) rolled over from short term overbought levels.

clip_image001

‘Tis the season for the U.S. Dollar Index to move lower to the end of the year!

clip_image003

Precious metal futures and related equities responded on both sides of the border by moving higher. The Gold Bug Index moved nicely above its 20 and 50 day moving averages. Short term momentum indicators also moved higher from short term oversold levels.

clip_image004

Seasonal influences for precious metals futures and equities normally turn positive in the second week in December for a seasonal trade lasting to at least the end of February. Silver is preferred over gold during this period.

clip_image006

FUTURE_SI1 Relative to the S&P 500
clip_image008

FUTURE_SI1 Relative to Gold
clip_image010

Favourable seasonal influences for the sector are appearing earlier than usual this year. Palladium futures broke to an all-time high yesterday on a move above $1,799.20.

clip_image011

 

StockTwits released yesterday @EquityClock

Silver equities are moving higher. Nice breakout by Pan American Silver $PAAS above $19.44 extending an intermediate uptrend.

clip_image012

Natural Gas ETN $UNG moved below $17.74 extending an intermediate downtrend.

clip_image013

Uranium ETF $URA moved below $10.72 setting an intermediate downtrend.

clip_image014

Bank of America $BAC, an S&P 100 stock moved above $33.60 extending an intermediate uptrend.

clip_image015

ManuLife $MFC.CA, a TSX 60 stock moved above $26.22 to a 10 year high extending an intermediate uptrend.

clip_image016

Pembina Pipeline $PPL.CA, a TSX 60 stock moved below $45.70 setting an intermediate downtrend.

clip_image017

 

Trader’s Corner

 

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for December 2nd 2019

clip_image019

Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for December 2nd 2019

clip_image021

Green: Increase from previous day

Red: Decrease from previous day


Sectors

Daily Seasonal/Technical Sector Trends for December 2nd 2019

clip_image023

Green: Increase from previous day

Red: Decrease from previous day

 

Technical Scoop

Thank you to David Chapman and www.EnrichedInvesting.com for a link to the weekly comment:

Headline reads, “Nine turn, recession unlikely, slowdown ongoing, continued repo, blue skies, debt high, beckoning Santa”. Following is the link:

http://enrichedinvesting.com/wp-content/uploads/2019/12/Nine-turn-recession-unlikely-slowdown-ongoing-continued-repo-blue-skies-debt-high-beckoning-Santa.pdf

 

S&P 500 Momentum Barometer

clip_image024

The Barometer dropped 6.21 to 66.73 yesterday. It remains intermediate overbought.

 

TSX Momentum Barometer

clip_image025

The Barometer dropped 5.48 to 65.30 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

Sponsored By...



2 Responses to “Tech Talk for Tuesday December 3rd 2019”

  1. Larry/ON Says:

    Worst thing to do now is let this drop influence anyone into panic selling. It’s just a minor correction and we came within a few points of the bottom of the Bollinger Band today on SPX, DOW and Nasdaq. I would call this a buying opportunity for anyone who holds cash. If we didn’t see the bottom of this dip today it should be tomorrow.

  2. Larry/ON Says:

    SHOP – Running counter to the market. Should be an indicator of a significant rally to come in that stock.

Leave a Reply

Entries RSS Comments RSS Log in