Tech Talk for Thursday August 6th 2020

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Morning Technical Notes for August 6th

Bristol-Myers (BMY) an S&P 100 stock moved above $60.68 resuming an intermediate uptrend. The stock responded to a favourable ruling on a patent for its blood thinner drug.

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UnitedHealth Group (UNH), a Dow Jones Industrial Average stock moved above $314.69 to an all-time high extending an intermediate uptrend.

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Western Digital (WDC), a NASDAQ 100 stock moved below $40.47 and $37.65 setting an intermediate downtrend. The company reported lower than consensus second quarter earnings.

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Bausch Health (BHC), a TSX 60 stock moved above $27.66 extending an intermediate uptrend.

The company announced plans to spin off its eye care division.

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Pre-opening Comments for Thursday August 6th

U.S. equity index futures were lower this morning. S&P 500 futures were down 6 points in pre-opening trade.

Index futures were virtually unchanged following release of Weekly Initial Jobless Claims Report at 8:30 AM EDT. Consensus was 1.415 million versus 1.434 million lasts week. Actual was 1.186 million

Amazon dropped $12.03 to $3193.00 after Jeff Bezos announced sale of shares valued more than $3 billion.

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Canadian Tire (CTC.A $128.57) is expected to open higher after reporting higher than consensus second quarter earnings.

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Bristol Myers added $1.70 to $61.39 and Pfizer gained $0.20 to $38.65 after winning a patent ruling on its blood thinner Elequis joint venture.

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MetLife dropped $1.88 to $36.40 after reporting lower than consensus second quarter earnings.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2020/08/05/stock-market-outlook-for-august-6-2020/

Note seasonality charts on Crude Oil Days of Supply and Canadian Imports and Exports.

Technical Notes for August 5th

Copper Miners ETF (COPX) moved above $20.71 extending an intermediate uptrend.

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Dow Jones Transportation Average iShares (IYT) moved above $179.39 extending an intermediate uptrend.

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Barrick Gold (ABX), a TSX 60 stock moved above Cdn$40.04 to an all-time high extending an intermediate uptrend.

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Disney (DIS), a Dow Jones Industrial stock moved above $127.82 following release of fiscal third quarter results extending an intermediate uptrend.

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Berkshire Hathaway, an S&P 100 stock moved above $203.33 extending an intermediate uptrend.

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Global X Fertilizer/Potash ETF (SOIL) moved above $7.98 extending an intermediate uptrend.

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Canadian Tire (CTC.A), a TSX 60 stock moved above $127.39 extending an intermediate uptrend.

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Trader’s Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for August 5th 2020

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Green: Increase from previous day

Red: Decrease from previous day

Commodities

Seasonal/Technical Commodities Trends for August 5th 2020

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for August 5th 2020

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Green: Increase from previous day

Red: Decrease from previous day

 

Greg Schnell’s “Market Buzz”

Greg discusses, “Digital Strategy Success in Decimated Retail Sector”. Following is a link:

https://www.youtube.com/watch?v=a-nUuCeP71k&feature=youtu.be

 

S&P Momentum Barometer

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The Barometer added 3.81 to 69.94 yesterday. It remains intermediate overbought.

 

TSX Momentum Barometer

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The Barometer added 3.97 to 77.88 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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8 Responses to “Tech Talk for Thursday August 6th 2020”

  1. bruce Says:

    the AAII survey for aug. 5th still shows their members not willing to participate…..bulls were 23.3% +3.1 historical average is 38%…..the bearish outlook stayed at 47.6% -0.9 historical average is 30.5%…….

  2. Larry/ON Says:

    BCE – Up after reporting a 64% drop in earnings from a year ago and provided no guidance. Advertising revenue down during the pandemic (no sports but sports starting up again). When a stock trades up on bad news something is usually afoot. It may take another day or two to see where direction will really be. Interesting but I wouldn’t touch this stock. BCE currently has a div payout ratio of 101% of TTM earnings. BMO has an outperform rating on BCE with a 61.50 target price while CFRA rates it a hold.

  3. Larry/ON Says:

    GLD and Miners – I have been waiting for some kind of correction from overbought. Today you have GLD up but miners down. That’s usually the first sign but you don’t know for sure if it’s something major. Longer term a lot of smart money is on gold and gold miners.

  4. Larry/ON Says:

    RON/BC – You posted an interesting chart on USD being at support on a nine year trend line. Putting the clues together I put that with my observations today on gold miners. CAD weaker today. Is some reversal of trend brewing albeit short-term? This does not point to equity strength because equities and USD have had negative correlation. Jitters at the moment are due to delay on congressional agreement to a further virus relief deal.

  5. Robert Furger Says:

    BA is calling for $3000.00 gold this year, 10year US bond at .515 today!

  6. Ron/BC Says:

    Larry/ON

    Well the U.S.$ is on an important 9 year trendline of significance with the pull back. “IF” that line doesn’t hold the big “price” test will be the mid 88 area. That overall pattern would be a sideways 5 year channel from 2015 to 2010. That’s a big range for the U.S.$ which could see a wide range of commodity prices. And yes prices of precious metal stocks are weakening with rising precious metal prices which is a tell tale sign prices could pull back with a U.S.$ rebound. And the Seasonality chart shows August to be a far stronger month than July for the U.S.$.

    https://stockcharts.com/h-sc/ui?s=%24USD&p=W&st=1980-07-28&id=p77616301227&a=673066394

    https://stockcharts.com/freecharts/seasonality.php?symbol=%24USD

  7. Paula Says:

    RE Rates/USD
    Ron/BC, I believe the yield on 10 year US Treasuries is related to the USD currency. Here is an old chart of yours that I saved, showing the 3 decades long decline in yields. Looks more over sold than at any other time on the chart. But the trend is down… (the inverse of gold)

    http://schrts.co/TQeuSRBN

  8. Ron/BC Says:

    Paula

    Here is another chart of the U.S.10 year Yield with the U.S.$ overlaid the chart. The U.S.$ is very very oversold and I suspect will bounce back soon and trash all those smug Gold stock holders that feel so good about themselves. It always happens,one just doesn’t know when.

    https://stockcharts.com/h-sc/ui?s=%24TNX&p=M&st=1975-06-16&id=p60137474356&a=673066484

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