Tech Talk for Tuesday May 26th 2020

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Pre-opening Comments for Tuesday May 26th

U.S. equity index futures were higher this morning. S&P 500 futures were up 55 points in pre-opening trade.

Bank of Nova Scotia (BNS $51.99 Cdn) is expected to open higher after reporting higher than consensus fiscal second quarter earnings.

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Merck gained $2.33 to $78.70 after announcing a deal to develop coronavirus vaccines.

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Autozone added $41.06 to $1164.00 after reporting higher than consensus fiscal third quarter sales and earnings.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2020/05/23/stock-market-outlook-for-may-26-2020/

Note seasonality chart on Canadian Retail Trade.

 

Technical Notes

Dollarama (DOL), a TSX 60 stock moved above $44.71 extending an intermediate uptrend.

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Cannabis sales soar at the restart of North American economies. Cannabis stocks quickly follow.

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Trader’s Corner

Editor’s Note: No changes from Friay.

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for May 25th 2020

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Seasonal/Technical Commodities Trends for May 25th 2020

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for May 25th 2020

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Green: Increase from previous day

Red: Decrease from previous day

Technical Scoop

Thank you to David Chapman and www.enrichedinvesting.com to a link to their weekly comment:

http://enrichedinvesting.com/wp-content/uploads/2020/05/Great-re-opening-buy-rumour-sell-news-disconnect-continues-Fed-liquidity-gold-highs-oil-steam.pdf

 

TSX Momentum Barometer

 

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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9 Responses to “Tech Talk for Tuesday May 26th 2020”

  1. tony Says:

    Good morning Paula,

    if there is one thing to know about indicators, its that some are setup for trends and others are better suited for sideways trading.

    Adx was never a favorite of mine because I can’t seem to grasp it.

    I only use two indicators the price vs 50MA and the basic MACD. Add to this the notion that either the bulls or the bears control the market. So with this in mind if my two indicators are positive bulls are in control and if not bears are in control.

    have any questions feel free to ask.

  2. wsto Says:

    Could today be the break out day for S&P (3000) and TSX (15200)?

  3. Larry/ON Says:

    SP500 – Nice break above the 200 day MA. RSI is not overbought. We are above the top of the Bollinger Band which should keep a lid on it and turn it into a slow grind up. I would like to see it stick for at least two more trading days above the 200 before calling it a major bull signal.
    Financials are very strong today which is quite positive for the market. Even the REITS seem to have gotten off the mat.
    QQQ – So close to the all-time high it’s just a matter of time now to take it out. You do have a 50/200 day cross-over that already happened.
    Tony – Are you the person who mentioned some time ago 4 and 9 day MA’s for short-term trading. I find them quite useful.

  4. tony Says:

    WTSO,

    Just got a break I took the to take a peak at the markets.
    Dow just broke out of the 24500 area which it was bumping its head since april 29th,
    SnP broke above the 2930-2975 that its been bumping head since april 29th.
    Same goes for the Nasdaq

    TSX is not there yet its still bumping head against 15,200 area.

  5. tony Says:

    Larry,

    Yes I’m the one and only. I don’t use them anymore I simply changed my frame to trade either hourly or 4hr time frame.
    As mentionned to Paula in post #2 I use the MACD and 50MA and been right 90% of the time with my trades.

    Thats how I avoided coronavirus downturn.

  6. Vivek Says:

    But, I’m sure it’s different this time…

    “Buffett has lost his touch”

    Q2 2000

    “Buffett has lost his touch”

    Q2 2020

    ———————

    Since 2000

    Berkshire: +412%
    Nasdaq 100: +181%

    *Total return, Bloomberg data.

  7. Paula Says:

    Tony,
    Thanks for your #1 and #5. Maybe when you have time, you could explain how the MACD and 50MA helped you avoid the coronavirus downturn? Were you fully invested before and then got out? What stocks/ETF were you using?

  8. Ron/BC Says:

    Here is a pretty chart of SPY using Elder Bars and the standard Keltner channels 20,2.0,10 in orange and the longer Keltner channel of 20,3.0,10 in pink. Also note the value of the RSI 21 below when above or below the 50 line. And note price is now above the Fibonacci 61.8% retracement level and held again above the 200ema.

    https://stockcharts.com/h-sc/ui?s=SPY&p=D&yr=1&mn=6&dy=0&id=p23465172284&a=673066097

  9. Bernie Says:

    Vivek,

    Re: #6
    Thanks for the BRK.A & QQQ total return comparisons. I thought I’d run a few more comparisons myself out of curiosity and because backtesting is what I like to do. I used Portfolio Visualizer’s Backtest Portfolio tool for my determinations and Jan 1/00 through Apr 30/20 for the test period (20 years & 4 months). I included the numbers for Mawer’s 3 longest running funds: their Balanced Fund (MAW104), Canadian Equity Fund (MAW106) and U.S. Equity Fund (MAW108). Portfolio Visualizer doesn’t allow for Canadian Mutual funds so I used the interactive chart feature in Morningstar.ca to come up with total returns and then plugged those numbers into the Annualized Return Calculator in everydaycalculation.com to provide annualized percentages. The results were rather surprising. They are shown below:

    BRK.A 8.26%
    AAPL 24.92%
    SPY 5.37%
    QQQ 5.09%
    MSFT 7.99%
    RY.TO 12.70%
    TD.TO 9.22%
    BNS.TO 10.61%
    BMO.TO 9.75%
    CM.TO 8.94%
    NA.TO 13.58%
    MAW106 8.80%
    MAW108 6.48%
    MAW104 7.47%

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