Tech Talk for Tuesday February 11th 2020

Daily Reports Add comments

Pre-opening Comments for Tuesday February 11th

U.S. equity index futures were higher this morning. S&P 500 futures were up 10 points in pre-opening trade.

Sprint jumped $3.30 to $8.120 in anticipation of approval by the courts of a merger with T-Mobil.

clip_image001[1]

NVIDIA advanced $4.19 to $267.16 after Oppenheimer and Deutsche Bank raised their target price on the stock.

clip_image002[1]

Under Armour dropped $2.73 to $17.73 after reporting less than consensus fourth quarter revenues and guidance. The company also lowered guidance.

clip_image003[1]

Hasbro gained $5.88 to $106.78 after reporting higher than consensus fourth quarter earnings.

clip_image004[1]

 

EquityClock’s Daily Market Comment

Following is a link:
http://www.equityclock.com/2020/02/10/stock-market-outlook-for-february-11-2020/

 

Observations

The U.S. Dollar Index ETN surged to a new all-time high.

clip_image001

By definition, most other currencies moved lower.

clip_image002

 

StockTwits released yesterday @EquityClock

iShares REIT $IYR moved above $96.62 to an all-time high extending an intermediate uptrend

clip_image003

Husky Energy $HSE.CA, a TSX 60 stock moved below $8.26 to a 15 year low extending an intermediate downtrend.

clip_image004

BMO Equal Weight Canadian Bank ETF $ZEB moved above $30.16 to an all-time high extending an intermediate uptrend.

clip_image005

Boeing $BA, a Dow Jones Industrial stock moved above intermediate resistance at $344.19

clip_image006

George Weston $WN.CA, a TSX 60 stock moved above intermediate resistance at $108.90

clip_image007

NetEase $NTES, a NASDAQ 100 stock moved above $352.00 extending an intermediate uptrend.

clip_image008

Alphabet $GOOGL, a NASDAQ 100 stock moved above $1500.58 to an all-time high extending an intermediate uptrend.

clip_image009

Editor’s Note: Ditto for $GOOGL!

clip_image010

 

Trader’s Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for February 10th 2020

clip_image012

Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for February 10th 2020

clip_image014

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for February 10th 2020

clip_image016

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 following report. Headline reads, “Rickards war, helicopter money, falling rates, creeping signs, strong numbers, precious hold”.

http://enrichedinvesting.com/wp-content/uploads/2020/02/Rickards-war-helicopter-money-falling-rates-creeping-signs-strong-numbers-precious-hold.pdf

 

S&P 500 Momentum Barometer

clip_image017

The Barometer added 1.00 to 64.13 yesterday. It remains intermediate overbought.

 

TSX Momentum Barometer

clip_image018

The Barometer was unchanged yesterday at 59.72. 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

Sponsored By...



6 Responses to “Tech Talk for Tuesday February 11th 2020”

  1. Larry/ON Says:

    NVDA – up $5 in pre-market. To add to Tech Talk’s post Oppenheimer’s target is $300. RBC also raised their target to $301. Earnings release after market close Feb 13. CEO Jensen Huang is considered a genius. NVDA is miles ahead on the technology of specialized chips.

  2. Bernie Says:

    Ron/BC,

    Sorry for not getting back sooner. I’ve finally had some time to examine your charts/suggestions a bit more. I can never get over how detailed and descriptive your charts are and how free you are with sharing your knowledge with others on here. I really like how clear you’re able to see good buy and sell levels with your modified 20ema overlay on a MACD (50,200,1) indicator. Unfortunately that feature isn’t available with the free version and I’m not into trading enough to want to subscribe. Your modified MACD histogram looks like it can be quite useful for non-subscribers like me, just wish Stockcharts would add Canadian mutual funds to their coverage!
    I’ve given your ideas/suggestions much thought over the years, ie; holding only a few positions, have an exit plan on the ready & get out early to avoid a big loss, heavy monitoring, basically trading shorter term instead of investing longer term. Great suggestions all and I appreciate your help but to adopt them all would be a wholesale change in my semi-passive dividend growth investing approach. My best performance results, have been when I did all my research up front, bought many positions to fit my goal for diversity & safety and then sat back and did basically nothing other than a little monitoring. Other than my attempt at trading or employing a financial planner to oversee my investments my poorest results were when I spent too much thought into things, ie; I over monitored my positions, was influenced by the news and then made unnecessary changes which put me off course from my original plan. They weren’t kidding when they said “investing is like a bar of soap, the more you handle it the smaller it gets”. My goal is to grow my investments to a level sufficient to meet our (wife included) immediate and future income needs via dividend income (immediate) and dividend growth (future). Ideally the income and dividend growth is more than sufficient so harvesting shares isn’t necessary. Despite what the index gurus say selling pieces of your holdings for income is NOT the same as receiving dividends. It may be similar at the time of the sale/distribution but it is not the same going forward. An alternate plan, I’m recommending to my wife should I pass on or she has to reluctantly run the show is to sell all and switch to stellar quality mutual funds, like the Mawers and have automated withdrawals. There are also the (ughhh) robo-advisors which can eliminate the need for a broker and the annuity approach. Mind you this and any other strategic plan is totally reliant on eroding ones capital. Whatever she ends up doing I hope she doesn’t feel a pricey advisor is the answer. Sorry to go off topic and bore you Ron, you’ve probably heard my story several times before. I know there are several ways I can go to increase and protect my capital but I prefer instead to focus on the less volatile income growth path. I have my RRIF, N/R and TFSA pretty much set now but not my wife’s RRSP. We’re focusing on growth there so your help is appreciated. I can’t decide on what to buy this time whether it be ETFs or mutual funds which are on my short list. The crazy prices out there aren’t helping and I hate waiting. We need a correction.

  3. Ron/BC Says:

    Bernie
    It’s great you have a plan that suits you and your wife and I think everyone tends to have one that suits them. I actually am not a fan of stocks,lol. Don’t know why I got into serious technical studies and courses etc in the late 70’s and was obsessed with it for so long. But it is fascinating for sure and it does help me with a lot of financial situations. My wife was a hard working lady and worked in long term care and in great shape but developed a respiratory illness that killed her at 58. So my 40 year long plan to leave everything to her ended with a different world to deal with entirely. So don’t “assume” anything as life has a way of turning things upside down when least expected. I was thinking about the chart I posted last Friday on the site and noticed there were some whipsaws with the Modified MACD using a 20ema. (Note the 20ema is of the 50/200 Modified MACD not the price). So I compared the 50,200,20 Modified MACD that had a few whipsaws that were noticeable on the MACD Histogram with a Modified MACD 50,200,50 which eliminates whipsaw signals and while this later one is a little slower the signals are definite without whipsaws. Just thought I’d post it for you and whoever to see. It would work well with anything that tracks the $SPX closely without any concern for news,recessions or anything else as price is king and this Weekly chart using the 50ema and 200ema and a 50ema signal line smooths out just about everything imaginable. With a 20 year chart one could just use it for buy and sell signals and catch some very nice moves up and exit on the sell signals to stop the clock on losses without any thought process. Very mechanical. I’ll have to check out this with some other ETFs on Weekly charts to see how well it stands up. I wouldn’t mind the odd whipsaw as I’d just exit and get back in again on a buy signal. I like to miss selloffs. And using the 50ema and 200ema you can see at a glance if one is above or below the other. The center blue line shows that well. I can understand your strategy as I have used a safe strategy to buy a $100k GIC at 4% that produces a reasonable income guaranteed with no risk. And even having cash in a bank account that pays a guaranteed interest rate despite being low but no risk. I don’t mind missing out on big stock price moves as what goes up inevitably comes down again. At my age I’ll risk buying a condo that needs work even though if the market sells off I’ll have to just live in the place longer. Not such a bad outcome regardless. My partner just has a 5 figure account at ScotiaMcleod for 8-10 years and gets about $500 per month and the balance hasn’t gone down yet. Gotta wonder about that,lol. It is a fully managed account. Someday you can show me what you are doing as I’m dividend and earnings blind it seems. And yes a major correction is years overdue and will happen when everyone least expects it.

    https://stockcharts.com/h-sc/ui?s=%24SPX&p=W&st=1994-01-01&id=p08606867450&a=673066405

  4. Larry/ON Says:

    M icrosoft
    A pple
    G oogle
    A mazon
    https://www.cnbc.com/2020/02/11/trump-heaps-praise-on-trillion-dollar-tech-club-calling-four-big-companies-maga.html

  5. DougP Says:

    As usual, wise words from Ron. But I am more inclined to Bernie’s approach, and my performance, while far from stellar, has become satisfactory and something I can live with. Nevertheless, observations and analyses from the likes of Ron, Bernie, Larry and others on this site are always good to read, and have guided me through problematic times like this for some years now. I just got my OBE (Over Bloody Eighty) after many years of service to the cause, and my daily rummages through TM and then my accounts have become part of my daily bread.

  6. dave/ab Says:

    Hi Bernie

    Rod Carrick from Globe an Mail wrote about Bristol Gate ETFs. Makes comment that they have a very good dividend growth profile in the states. 1st year in Canada.
    Bristol Gate Concentrated Canadian Equity ETF (BGC-T) and Concentrated U.S. Equity ETF
    Have you followed them?

Entries RSS Comments RSS Log in