Tech Talk for Friday January 17th 2020

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Pre-opening Comments for Friday January 17th

U.S. equity index futures were higher this morning. S&P 500 futures were up 8 points in pre-opening trade.

Equity index futures were virtually unchanged following release of December Housing Starts released at 8:30 AM EST. Consensus was unchanged from November at 1.365 million units. Actual was 1.608 million units.

Gap Stores gained $1.19 to $19.80 after the company announced that it no longer will spin off its Old Navy division. The company also raised guidance. Deutsche Bank raised its target price on the stock to $18 from $15.

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CSX dropped $1.87 to $74.87 after the company lowered revenue guidance.

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State Street gained $1.87 to $83.01 after reporting higher than consensus fourth quarter revenues and earnings.

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Adobe added $3.37 to $348.75 after Oppenheimer upgraded the stock to Outperform from Perform.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2020/01/16/stock-market-outlook-for-january-17-2020/

Note seasonality charts on the Dow Jones Transportation Average and Retail Trade.

 

StockTwits released yesterday @EquityClock

Pepsico $PEP, an S&P 100 stock moved above $139.47 to an all-time high extending an intermediate uptrend.

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Bank on New York Mellon $BK, an S&P 100 stock moved below $49.80 and $47.91 setting an intermediate downtrend

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Paychex $PAYX, a NASDAQ 100 stock moved above $87.84 to an all-time high extending an intermediate uptrend.

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Bombardier $BBD.B.CA, a TSX 60 stock moved below $1.53 to a 4 year low extending an intermediate downtrend. The company lowered quarterly revenues and earnings guidance.

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Imperial Oil $IMO.CA, a TSX 60 stock moved above $35.31 setting an intermediate uptrend.

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Johnson & Johnson $JNJ, a Dow Jones Industrial stock moved above $147.84 to an all-time high extending an intermediate uptrend.

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Cisco Systems $CSCO, a Dow Jones Industrial stock moved above $48.62 setting an intermediate uptrend.

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Honeywell $HON, an S&P 100 stock moved above $182.21 to an all-time high extending an intermediate uptrend.

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Breakouts that occurred in closing trades after 4:00 PM EST

U.S. Aerospace and Defense iShares $ITA moved above $232.86 to an all-time high extending an intermediate uptrend.

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UnitedHealth Group $UNH, a Dow Jones Industrial stock moved above $300.00 to an all-time high extending an intermediate uptrend.

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U.S. REIT iShares $IYT moved above $95.06 to an all-time high extending an intermediate uptrend.

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U.S. Insurance iShares $IAK moved above $72.30 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 January 16th 2019

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Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for January 16th 2019

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for January 16th 2019

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Green: Increase from previous day

Red: Decrease from previous day

Observation

Classic reverse Head & Shoulders pattern on a break above $22.25!

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S&P 500 Momentum Barometer

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The Barometer gained 6.41 to 82.16 yesterday. It remains intermediate overbought.

 

TSX Momentum Barometer

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The Barometer added 2.29 to 78.44 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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11 Responses to “Tech Talk for Friday January 17th 2020”

  1. Larry/ON Says:

    Keith Richards from ValueTrend was on BNN Market Call Tonight yesterday providing technical analysis. The video is available on the website. Essentially he said that while the market is overbought the trend is in place and you don’t know how far it can go before a pullback and he thought any pullback would be quite minor and should be regarded as a buying opportunity.
    IMO this bull market has been underestimated at every step of the way. There is just too much money that wants to get in so how are you going to have much of a drop before the buyers step in and put a halt to it. Anything that hasn’t been working should be avoided and stick with the large cap winners.

  2. Larry/ON Says:

    TSLA – Elon Musk Is Taking Over World Internet (It sounds like a James Bond plot). Starlink was approved this week by the FCC. Musk is planning on sending over 1000 small satellites to orbit the earth to relay internet requests. The idea is that it can be much cheaper then having to lay new cable across the globe. Even in places in the US and Canada, not all cities even have fiber yet just because its a huge infrastructure project. The thinking is that it will be much easier to offer internet services across the world. Also the speeds could be much better because they are experimenting with laser technology to relay communications between the satellites. The thinking is that light traveling through a very thin atmosphere or very close to a vacuum would be faster through glass cables, which is done now.

  3. rick Says:

    Bernie ,
    Thank you for your response . Those articles are great and explain very well .
    I asked because I have a small position in EXR . Being a REIT , dividends per shares are higher than earnings per share and I couldn’t find a logical explanation .
    Now I know . Thanks.

  4. Ron/BC Says:

    Rick

    Looks like you’ve found a real winner with EXR. Wish all charts looked like this. Price cleared price resistance at 107 which was also its 200ema and its downtrendline. The 50ema came down and bounced back up off its 200ema. Next resistance is 112 which it tagged today and is overbought with the RSI 8. Might see a pullback to the 107 breakout pt or just pause and clear 112 and run to 122. Descent volume on it as well. Nice Catch!

    I’m going to California early Monday morning for a couple of weeks with my partner so wont be buying anything I want to spend time watching.

    https://stockcharts.com/h-sc/ui?s=EXR&p=D&yr=2&mn=0&dy=0&id=p38799192900&a=714428110

  5. Bernie Says:

    Ron/BC,

    Enjoy your 2 weeks in California! Hopefully its sunny but not too hot during your stay, I know you don’t like higher temperatures. Are you staying in Palm Springs again?

  6. Ron/BC Says:

    Bernie

    We’re going to San Luis Obispo Ca. It’s north of Los Angles and south of San Jose about 1/2 way. Never heard of the place before but my partner’s friend used to go there with her husband long ago and raved about it. It’s not that hot there from what I can see. After the dump of snow here and very cold for a few days I’ll be glad to get out of here. Had to bring in the Hummingbird feeders at my partner’s place off and on to keep them fluid. Warming up here now and raining but I understand why so many live in warm climates. Wouldn’t mind living in a real mild & warm but not hot climate. I loved it in Palm Springs and it’s small enough to get to know it in a short period of time. Hopefully San Luis Obispo will be the same. The locals call it SLO. Sounds good to me.

    https://www.theweathernetwork.com/us/14-day-weather-trend/california/san-luis-obispo

  7. Bernie Says:

    Ron/BC,

    Its been colder than normal here too and very snowy. I wish you west coasters would stop sending the precip this way, I’m worn out from all the shovelling! Sounds like a wonderful spot you’re visiting…wish I were going too. Hopefully you can get some golf in. Enjoy

  8. Ron/BC Says:

    Bernie

    I didn’t know you were getting what we call the “Pineapple Express” out there too. Well it typically comes down as rain but if on the way down there is a cold front below it then it turns to snow. And I’ve read that 1 inch of rain equates to 1 foot of snow. And that what they say Victoria got overall in most places here in short order. More than that in nearby areas. I shoveled my partners condo driveway out so I could drive in which was also a lot of shoveling. Not used to that and my Ford Escape hasn’t been good on the snowy roads just to max out my patience. I’m going to sell it and buy an all wheel drive even if we only get snow a week or so per year. Never had so much trouble with a vehicle in the snow. I hadn’t planned on this Ca. trip as I’ve had a lot on my plate recently with working on my condo and moving all my furniture out and back while my floors were being redone. But once we get there I’m sure it will be interesting.

  9. Bernie Says:

    Ron/BC,

    I’ve heard all about how the weather systems track inland from the Pacific. What I didn’t know was Nelson is in its own rain forest due to a combination of the mountain terrain and the large neighbouring lake which never freezes over. So when it rains here it really comes down in buckets. Apparently, the same thing happens in winter but its mostly snow. Thank heaven its rarely windy (or unbearably cold) here like it is in the prairies. Another odd thing is the variation in snowfall amounts and snow depths around town. Its dependant on how close one is to the lake. Those who live in the higher elevations, like us, will get greater snowfall and slower melt than those in the lower elevations who will get less snowfall, more rain and more melt.

    We’ve heard quite a bit about the chaos created when Vancouver and Victoria get that annual dump of snow. Sorry to hear that your vehicle doesn’t handle the wet slushy roads very well. I mentioned this to my wife. She said its because you’re driving a Ford. Her comment has nothing to do with the fact that she works for a Toyota dealer as a Journeyman Parts person or that we drive a Toyota Camry Hybrid or that I’ve been driving Toyotas since the early 80’s lol. Seriously we love Toyotas reliability, dependability, durability and long life spans. Our next vehicle will likely be a RAV4.

    You well deserve a break from the weather and physical labour Ron! Hopefully not too much that you’ll not want to come back. We felt that way last January at the end of our New Orleans visit and Caribbean cruise.

  10. Ron/BC Says:

    Bernie

    Well your wife is likely right. I used to drive a Jeep Cherokee and then a Jeep Grand Cheroke and loved the Grand Cherokee. But then switched to a Ford Fusion and for a car it was impressive even in the snow and was only 2 wheel front drive. But this Escape is great in everything but the snow. When little old ladies drive by me on a snowy road with summer tires and I can’t even get out of my flat parking lot there is something wrong with that picture. But I’ll just get rid of the suv at some point soon and move onto something else. I like a SUV for the extra room for 2 sets of clubs and other junk so will stick with them. Just haven’t figured out what would be a good SUV that isn’t overpriced and expensive to repair. Haven’t had to spend anything on repairs with my Escape in almost 5 years which is a good track record. And there are thousands of them on the road in my model from 2008 through 2012 so they were a very popular SUV. And the newer models from 2013 on are also popular and don’t hear much complaining about them. So I find it hard to ignore them. What I really want is all wheel drive with a 4 cyl automatic mainly.

    It will be nice to get to our rental and start enjoying the holiday. I spoke to a cabinet salesman whose been quoting me on new cabinets about living there and he came from that area in Ca. and said it is unbelievably hot much of the year and prefers it here.
    I thought about your cruise last year and that did sound like a well rounded trip. I’ll have to look into one of those types of trips this year. I did go on a cruise to Alaska and back several years ago by myself and enjoyed it. Not getting any younger either. Like Wayne Dyer said,”Don’t die with your song still in you.”

  11. Bernie Says:

    Ron/BC,

    If you do get an AWD don’t think you’re infallible in slippery winter conditions. I’ve driven through a fair number of prairie blizzards in my time. They’re never fun. It doesn’t matter what kind of vehicle one drives they all should slow down in poor road conditions. Ironically many of the vehicles I’ve seen in the ditch were SUVs, probably AWD, several of them had passed by me at high speed only moments earlier. Enjoy your stay in Californ-I-Ay!

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