Tech Talk for Wednesday October 14th 2020

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Morning Technical Notes for Wednesday October 14th

Exelon (EXC), an S&P 100 stock moved above $41.54 resuming an intermediate uptrend.

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Pre-opening Comments for Wednesday October 14th

U.S. equity index futures were mixed this morning. S&P 500 futures unchanged in pre-opening trade.

Index futures were virtually unchanged following release of the September U.S. Producer Price Index at 8:30 AM EDT. Consensus was an increase of 0.2% versus a gain of 0.3% in August. Actual was an increase of 0.4%. Excluding food and energy, consensus was an increase of 0.9% versus a gain of 0.6% in August. Actual was an increase of 0.4%.

Bank of America slipped $0.55 to $24.40 after reporting lower than consensus third quarter revenues.

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Goldman Sachs gained $6.29 to $217.00 after reporting higher than consensus third quarter earnings.

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UnitedHealth Group advanced $2.58 to $334.00 after reporting higher than consensus third quarter revenues and profits. The company also raised guidance.

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Peleton added $0.98 to $132.00 after Truist raised its target price from $115 to $144.

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EquityClock’s Daily Comment

Following is a link:

http://www.equityclock.com/2020/10/13/stock-market-outlook-for-october-14-2020/

Note seasonality charts on the KBW Banks Index and U.S. Consumer Price Index

Technical Notes for Tuesday October 13th

Vietnam ETF (VNM) moved above $15.20 extending an intermediate uptrend.

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Wills Tower Watson (WLTW), a NASDAQ 100 stock moved above $218.58 to an all-time high extending an intermediate uptrend.

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Micron (MU), a NASDAQ 100 stock moved above $52.17 resuming an intermediate uptrend following an upgrade to Buy by Deutsche Bank

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KLA Tencor (KLAC), a NASDAQ 100 stock moved above $218.57 to an all-time high extending an intermediate uptrend.

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ASML Holdings (ASML), a NASDAQ 100 stock moved above $402.86 to an all-time high extending an intermediate uptrend.

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Canadian forest product stocks moved below short term support levels including Canfor (CFP), West Fraser (WFT) and Interfor (IFP).

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Trader’s Corner

Daily Seasonal/Technical Equity Trends for October 13th 2020

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for October 13th 2020

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Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for October 13th 2020

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Green: Increase from previous day

Red: Decrease from previous day

S&P 500 Momentum Barometer

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The Barometer slipped 5.62 to 73.09 yesterday. It remains intermediate overbought.

 

TSX Momentum Barometer

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The Barometer eased 1.88 to 58.69 yesterday. It changed from intermediate overbought to intermediate neutral on a move below 60.00.

 

 

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

MoneyShowNovember62020




6 Responses to “Tech Talk for Wednesday October 14th 2020”

  1. Steph Says:

    Ron, Thank you for your input, I always get value from your insights. I agree with you and add that the demand for dollars in global payments for trade should boost the value of $US and the shorts will get squeezed using it higher. I can’t recall a firm asking for invoices to be paid in gold. Insert smiley emoji here.

    I’ve been doing this a long time: I own stocks who have dividends higher than my ACB. One thing I can assure investors is that valuation matters. Like Ron, I too had a stockbroker a long time ago and learned that I get stock and also get “broker”. Buying high and hoping to sell higher was and is not a strategy for me and paying someone else 1% hurts.

  2. Ron/BC Says:

    Steph

    The U.S.$ is the world’s reserve currency and is therefore the “safe haven” at various times of financial upheaval. It doesn’t always trade inverse to the $SPX and often tracks it so it is a wild card much of the time as far as trading goes. But my question to those who are always talking it down is what currency would those people prefer if not the U.S.$. I can’t think of one that is anywhere close to replacing it. Certainly not the complicated basket case Euro.

    As far as stocks go congrats to you for having the foresight to buy and hold some stocks that pay dividends. I just don’t have the faith in them to hold them for long. All it takes for me to exit is a dog barking,lol. I’d prefer to do some real estate deal and in between just put a large amount of cash in a high interest savings account or GIC,not that there is one presently being offered. But when I had $500K in cash at 2% to 4% that still made me $10K to $20K per year interest risk free. It’s not the percent earned that’s ever important, its the amount of cash making that percent even when small. Many never see that. I would still enjoy having a broker that’s plugged into all the trading all the time to grasp and share the true trends of the markets as they emerge but don’t have a lot of confidence in any of them today.I used to enjoy talking to my broker to hear his thoughts and emotions on the markets. And now nothing needs to occur financially to see the DOW move several hundred points up or down other than some comment about a “Stimulus Package” being approved or disapproved in Washington. That’s not investing anymore,just speculating. Might as well go to the Casino and roll the dice as the odds are about the same without the wait.

  3. Larry/ON Says:

    Re 2. The same inverse relationship between USD and equity markets happened during the 2008/09 crisis. The pandemic crisis is repeating this pattern. I would look for this inverse relationship to diminish the further the global economy gets back to normal.

    https://www.cnbc.com/id/34240067#:~:text=The%20inverse%20relationship%20between%20the%20dollar%20and%20stocks%20is%20statistically,to%20other%20points%20in%20history.

  4. Steph Says:

    I hear you Ron – I only tell you about what I still own today that are successes, never mind the painful lessons and blow ups along the way. I recall a certain telephone company in Brampton, Ontario that cost me. Brokers today are asset gatherers that want their 2% management fee whilst offering free dinners and golf games. I have my own money and don’t have the wherewithal to spend time with a defacto employee. I got a little lucky along the way when I was operating a unit for a US firm out of Osaka Japan in the 1980’s to understand capital flows and impacts. We actually had a money market manager full time simply to manage our Yen/PoundDeutchemark/US on a daily basis. It’s all automated now but the results are the same.

    I used to manage my own fixed income until the Canadian Banks started scalping me on their bid/ask spreads. I used to think I was so smart buying an I class fixed income at .80% but now any investor can buy a these ETF’s for next to nothing.

    My biggest thing now is how to gift these shares to my family and not pay Pierre Jr an arm and a leg.

    Thanks again for your insights – another two weeks of golf here then the snow flies. Pretty north of Toronto these days.

  5. Larry/ON Says:

    Something To Think About
    https://www.cnbc.com/2020/10/14/brokerage-log-ins-for-sale-on-dark-web-robinhood-sees-highest-prices-.html

  6. Ron/BC Says:

    Steph

    I never was much of a believer in the stock stories. They never change. It’s like they say “Is everyone onboard” and when the answer is yes they pull the plug. I’ve been burned on option trading in the distant past a couple of times. It’s amazing how quickly your position can vanish instantly with Options. I’ve been fortunate with switching currencies in the past. Probably more luck than skill but I’m keeping it anyways,lol.
    Here is a long term chart of $TNX. It’s worth a look as once again the chart is suggesting interest rates are about to bounce back up again soon. This is a Monthly chart so is not that timely. Golfing is still good here but the rain has started coming down often so one has to pick their days. Or learn to golf in the rain.

    https://stockcharts.com/h-sc/ui?s=%24TNX&p=M&st=1975-06-16&id=p89198556058&a=673066484

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