Tech Talk for Tuesday March 3rd 2020

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Pre-opening Comments for Tuesday March 3rd

U.S. equity index futures were higher this morning. S&P futures were up 16 points in pre-opening trade.

G7 central bank members confirmed this morning that they are willing to take measures as needed to offset a slowdown in economies related to the coronavirus breakout. However, no specific action was announced.

Target slipped $0.23 to $108.83 after reporting lower than consensus fourth quarter revenues.

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UPS added $1.87 to $94.62 after an upgrade by Deutsche Bank from Hold to Buy.

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Kohl’s gained $1.36 to $38.44 after reporting higher than consensus fourth quarter sales and earnings. The company also raised its dividend.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2020/03/02/stock-market-outlook-for-march-3-2020/

Note seasonality chart on U.S. Construction Spending.

 

Observations

Yesterday, the Dow Jones Industrial Average recorded the largest one day point gain in history.

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The TSX Composite Index has a history of moving higher at this time of year to the end of May, but underperforms the S&P 500 Index. between now and the beginning of May.

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StockTwits released yesterday @EquityClock

Seattle Genetics $SGEN , a NASDAQ 100 stock moved below $104.24 completing a double top pattern.

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Trader’s Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for March 2nd 2020

spx march 3

Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for March 2nd 2020

crb march 3

Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for March 2nd 2020

xlk march 3

Green: Increase from previous day

Red: Decrease from previous day

 

Technical Scoop

Thank you to David Chapman and www.EnrichedInvesting.com for the link below. Headline reads “Virus spark, intermediate top, few hide-outs, overvalued complacency, golden poise”.

http://enrichedinvesting.com/wp-content/uploads/2020/03/Virus-spark-intermediate-top-few-hide-outs-overvalued-complacency-golden-poise.pdf

 

Keith Richards’ Blog

Keith notes that the “Bear-o-meter is screaming low risk” Following is a link:

https://www.valuetrend.ca/bear-o-meter-screaming-low-risk/

 

The Canadian Technician

Greg Schnell released a comment yesterday entitled “Trying to recover”. Following is a link:

https://stockcharts.com/articles/canada/2020/03/trying-to-recover-514.html

 

S&P 500 Momentum Barometer

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The Barometer advanced 11.22 to 14.63 yesterday. It recovered from deeply intermediate oversold levels.

 

TSX Momentum Barometer

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The Barometer recovered 5.27 to 20.27 yesterday. It recovered from an intermediate oversold level.

 

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




3 Responses to “Tech Talk for Tuesday March 3rd 2020”

  1. Ron/BC Says:

    BIG TEST with the $SPX. Price broke below 3025 support area Friday and recleared it Monday. Price has now pulled back to this important price support area. This 3025 level needs to hold to suggest the market is stabilizing. It’s not unusual for price to break below the 200ema or even below support for a few days and then rally back through it as well, but I won’t be betting on it.

    The virus threat is also a financial threat to the economy world wide. Not the same as the 2007-09 economic reversal but just as damaging. Each reversal in the economy is different. Many years ago it was typically record high interest rates. Bottom line is the results are the same. But the charts will tell the tale.

    https://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=1&mn=3&dy=0&id=p20117548687&a=693577605

  2. Wayne Says:

    Ron,
    This is the first time that the market has not bounced from a positive Fed rate cut. Look for another down move.

  3. Rol Lew Says:

    – look for another down move

    https://finance.yahoo.com/news/trying-shock-stocks-emergency-cuts-192214227.html

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