Tech Talk for Friday August 7th 2020

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Morning Technical Notes for August 7th

Biogen (BIIB), a NASDAQ 100 stock moved above $404.20 setting an intermediate uptrend.

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Dollarama (DOL) , a TSX 60 stock moved above $50.10 extending an intermediate uptrend.

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Pre-opening Comments for Friday August 7th

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

Index futures moved higher following release of the July Employment Report released at 8:30 AM EDT. Consensus for July Non-farm Payrolls was an increase of 1.600 million versus a gain of 4.800 million in June. Actual was an increase of 1.763 million .Consensus for July Unemployment Rate was a drop to 10.5% from 11.1% in June. Actual was 10.2%. Consensus for July Hourly Earnings was a drop of 0.5% versus a drop of 1.2% in June. Actual was a gain of 0.2%

The Canadian Dollar was virtually unchanged at US74.95 cents following release of Canada’s July Employment Report at 8:30 AM EDT. Consensus was an increase of 380,000 versus a gain of 952,000 in June. Actual was 418,500. Consensus for the July Unemployment Rate was 11.0% versus 12.3% in June. Actual was 10.9%.

Lions Gate gained $0.59 to $8.40 following release of higher than consensus fiscal first quarter earnings.

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Groupon jumped $5.55 to $22.00 after reporting higher than consensus quarterly revenues and earnings.

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T Mobil advanced $5.90 to $114.00 after reporting higher than consensus second quarter revenues and earnings.

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EquityClock’s Daily Market Comment

Following is a link:

http://www.equityclock.com/2020/08/06/stock-market-outlook-for-august-7-2020/

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 and lower than consensus guidance.

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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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McDonald’s (MCD), a Dow Jones Industrial Average stock moved above $202.73 extending an intermediate uptrend.

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Russell 2000 iShares (IWM) moved above $152.87 extending an intermediate uptrend.

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Saputo (SAP), a TSX 60 stock moved above $34.92 resuming an intermediate uptrend.

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U.S. Lumber prices soared above $564.30 to a two year high extending an intermediate uptrend. Partially response to U.S. Dollar weakness.

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Strength by U.S. equity indices yesterday can be attributed mainly to a surge in two heavy weight stocks to all-time highs: Facebook and Apple

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Alcoa is likely to open lower this morning after President Trump after the close proposed a 10% tariff on aluminum imports from Canada .

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Stocks of aluminum can users (Beer and Soft Drinks), who are expected to absorb the additional cost, could slip lower in early trade.

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Trader’s Corner

Equity Indices and related ETFs

Daily Seasonal/Technical Equity Trends for August 6th 2020

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Seasonal/Technical Commodities Trends for August 6th 2020

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Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for August 6th 2020

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Green: Increase from previous day

Red: Decrease from previous day

Greg Schnell’s Comments on the Agriculture Sector

Headline reads, “Agriculture Names Start to Swing”. Following is a link:

https://stockcharts.com/articles/canada/2020/08/agriculture-names-start-to-swi-515.html

 

S&P 500 Momentum Barometer

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The Barometer slipped 1.80 to 68.14 yesterday. It remains intermediate overbought.

 

TSX Momentum Barometer

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The Barometer added 1.64 to 79.52 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

Enjoy your weekend!   Summer is sailing on by!

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6 Responses to “Tech Talk for Friday August 7th 2020”

  1. tony Says:

    Hi Larry

    Gold subject

    As I was reading your comment from this week I got to look at a few stocks and gold

    Me being the cautious that I am i took a look at the gold sector starting april 1st.

    since then
    GLD is up 27%
    GDXJ 111%
    GDX 80%
    ABX 46%
    FNV 52%
    AEM 83%
    NGT 40%
    K 126%
    IMG 84%
    FR 82%
    rgol 52%

    So yes gold has been one of the poster boys of this rally but not all companies are created equally. I’m a fan of AEM because since I know it will follow gdx tightly if it doesn’t surpass gdx otherwise I would go with either gdx or gdxj because I don’t know in which companie people see more potential for $$$ growth

  2. Larry/ON Says:

    Hi Tony – K and GDXJ were on my short-list but as you can see we are now in a bit of corrective mode and it’s hard to tell how far it will go. I don’t think it will break trend. I unfortunately have some psychological reluctance to get involved in the gold trade that I will have to get over. I might just stick to my knitting (Tech).

  3. tony Says:

    Larry,

    I fully understand, I’m the same.

    I don’t think the trend in gold is done MACD is still positive so a little chunk at the 50MA is where I put my chips.
    if macd turns negative then simply sell it but as we speak macd is .84 so closer to the bullish then the bears side

  4. Paula Says:

    Here is a link to some simple charts from the Public Charts List on Stockcharts. GDX and other gold etfs have just triggered a TLBSS (trend line break sell signal):

    https://stockcharts.com/public/1094070/tenpp/2

  5. Mary Says:

    Paula

    With the President signing an executive order today ….. just maybe US$ keeps going down and party continues. I am on sidelines for now.

    “The executive orders defer payroll taxes through the end of the year for Americans earning less than $100,000 a year.

    They also defer student loan payments through the end of the year; continue eviction moratoriums; and extend enhanced unemployment benefits that expired last week, but at a reduced level of $400 instead of the prior $600”.

  6. Dave/ab Says:

    Extra reading on where gold prices may go and why.

    https://www.cnbc.com/2020/08/07/citi-economists-explain-why-gold-is-surging-above-2000.html

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