Tech Talk for Wednesday January 6th 2021

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Morning Technical Notes for Wednesday January 6th

NXP Semiconductors (NXPI), a NASDAQ 100 stock moved above $166.87 to an all-time high extending an intermediate uptrend.

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NetEase (NTES), a NASDAQ 100 stock moved above $103.30 to an all-time high extending an intermediate uptrend.

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20 year Treasury Bond iShares (TLT) moved below $154.31 extending an intermediate downtrend.

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U.S. REIT iShares (IYR) moved below $154.31 completing a double top pattern. Responding to higher U.S. interest rates!

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Dow Holdings (DOW), an S&P 100 stocks moved above $57.46 to an all-time high extending an intermediate uptrend.

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Coca Cola (KO), a Dow Jones Industrial Average stock moved below $51.08 completing a double top pattern.

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MetLife (MET), an S&P 100 stock moved above $48.89 extending an intermediate uptrend.

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Pre-opening Comments for Wednesday January 6th

U.S. equity index futures were lower this morning. S&P 500 futures were down 7 points in pre-opening trade. Index futures responded to uncertain results from the Georgia Senate run-off election results. Results this morning show the Democrats winning one seat and leading in one seat, leading to a possible switch in control of the Senate from Republican to Democrat.

Index futures were virtually unchanged following release of the December ADP Private Employment report at 8:15 AM EST. Consensus was a gain of 88,000 versus a revised gain of 304,000 in November .Actual was a drop of 123,000.

Tesla advanced $17.88 to $752.99 after Morgan Stanley raised its target price from $540 to $810.

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Walgreens Boots added $0.96 to $42.12 after AmerisourceBergan reached an agreement to acquire Walgreens Alliance Healthcare unit for $6.5 billion in cash and stock.

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Starbucks (SBUX $103.44) is expected to open higher after Barclays chose the stock as a “Top Pick” for 2021.

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Hershey (HSY $150.73) is expected to open higher after Bank of America upgraded the stock from Neutral to Buy.

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EquityClock’s Daily Comment

Following is a link:

http://www.equityclock.com/2021/01/05/stock-market-outlook-for-january-6-2021/

 

Technical Notes for Tuesday January 5th

‘Tis the season for the TSX Composite to outperform the S&P 500 Index between now and early March!

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TSX Composite Index moved above an inter-day high at 17,684.07 and a closing high at 17.652.94 extending an intermediate uptrend

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‘Tis the season for energy and energy service stocks on both sides of the border to move higher into late April!

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North American energy and oil services stocks moved higher on news that Saudi Arabia decided to reduce production by 1 million barrels per day in February and March. Crude oil prices moved higher, testing the $50.00 per barrel level. Oil and Gas Exploration iShares (XOP) moved above $63.77 extending an intermediate uptrend.

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Oil Services ETF (OIH) moved above $166.68 extending an intermediate uptrend.

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TSX Energy iShares (XEG) moved above $6.35 extending an intermediate uptrend.

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ExxonMobil (XOM), a Dow Jones Industrial Average stock moved above $44.47 extending an intermediate uptrend.

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Cenovus (CVE), a TSX 60 stock moved above $8.21 extending an intermediate uptrend.

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Imperial Oil (IMO), a TSX 60 stock moved above $25.88 extending an intermediate uptrend.

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Canadian Natural Resources (CNQ), a TSX 60 stock moved above $32.49 extending an intermediate uptrend.

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Cameco (CCO.TO CCJ), a TSX 60 stock moved above Cdn.$18.38 and US $14.41 respectively extending an intermediate uptrend.

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Base Metal equities and related ETFs (e.g. ZMT.TO, XBM.TO) continue move higher. Hudbay Minerals (HBM.TO) moved above $9.54 extending an intermediate uptrend.

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‘Tis the season for the Healthcare sector to move strongly higher in January on a real and relative basis!

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Healthcare SPDRs (XLV) moved above $113.94 to an all-time high extending an intermediate uptrend. The sector is moving higher partially to anticipation of news next week about new healthcare products and services announced at JP Morgan’s annual healthcare conference in San Francisco. The conference is held this year from January 13th to January 16th.

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U.S. Healthcare Providers iShares (IHF) moved above $235.31 to an all-time high extending an intermediate uptrend. Expected to benefit from a Biden presidency!

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U.S. Medical Devices iShares (IHI) moved above $329.52 to an all-time high extending an intermediate uptrend. Expected to benefit from a Biden presidency!

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Target (TGT), an S&P 100 stock moved above $181.17 to an all-time high extending an intermediate uptrend.

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JD.com (JD), a NASDAQ 100 stock moved above $92.77 to an all-time high extending an intermediate uptrend.

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NetEase (NTES), a NASDAQ 100 stock moved above $98.18 resuming an intermediate uptrend.

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Rogers Communications (RCI), a TSX 60 stock moved above US $47.77 and Cdn$61.15 extending an intermediate uptrend.

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Palladium advanced above $2,523.50 per ounce extending an intermediate uptrend.

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Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for January 5th 2021

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Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for January 5th 2021

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for January 5th 2021

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Green: Increase from previous day

Red: Decrease from previous day

 

Please note that seasonality ratings on several equity indices and several U.S. sectors are scheduled to change on January 7th. Most of the changes are downgrades from Positive to Neutral.

 

S&P 500 Momentum Barometer

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The Barometer added 3.21 to 77.35 yesterday. It remains intermediate overbought.

 

TSX Momentum Barometer

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The Barometer added 3.21 to 76.67 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




10 Responses to “Tech Talk for Wednesday January 6th 2021”

  1. Larry/ON Says:

    Dems took one for sure and probably took both seats. The markets did not fall off a cliff.
    Solar really popped higher (TAN). EV also strong as well as base metals, infrastructure stocks like URI and US financials. The expectation seems to be for large scale stimulus spending by the Biden Admin. URI looks great as a long-term hold.

  2. Ron/BC Says:

    XIU.TO: Not such a bad looking chart. (other than being 10% above its 200ema)
    Am looking for a home for my TFSA cash that just came due with a GIC. It is winter and it’s cold out there. (even on the West Coast) Can’t even golf some days!!!

    https://stockcharts.com/h-sc/ui?s=XIU.TO&p=D&yr=0&mn=8&dy=0&id=p23500012228&a=679913126

  3. Larry/ON Says:

    GLD – We just got the reversal I was wary of that now filled the gap. It’s a little strange that gold and silver are running counter to base metals right now.

    TLT – Next support level is at 152 if you look at Techtalk’s chart. We are on the edge. I don’t know where the floor would be after that. RSI is almost oversold though. We are looking at a large scale movement out of bonds and into equities bringing multiple expansion.

  4. Paula Says:

    Ron/BC

    Ron/BC
    I keep looking at XIU.TO and then recall that one of the main components is financials, which you have often pointed out on your charts. So I plugged in ZEB.TO and they look very similar plus you get a full 1% higher yield (3.95% vs 2.92% for XIU.TO). If XIU.TO does well, the banks will have to be a big reason. Something to consider for your homeless cash?

    TD goes ex dividend tomorrow, so if a person buys it today, you will get the dividend. Current yield is 4.23%, annualized. I am holding it.

  5. Paula Says:

    meant to send this chart:

    https://schrts.co/GJyxSZrz

  6. bobj Says:

    Paula,

    re: TD, yes x divided tomorrow, buy today will settle in 2 days, Jan 8th. no div. pay this quarter.

  7. Larry/ON Says:

    Attack On Congress – This is a true demonstration of how dangerous Trump is and how low the US has gone in its’ descent into madness and delusion. Andrew Coyne’s column today in the Globe is a good summation. This will only delay things for a day and Biden will take over on the 20th. I hope that successful criminal prosecution of Trump does take place.

  8. Paula Says:

    Larry,

    I have been very worried about this happening. I agree with you and here is a link to the column in the G & M:

    https://www.theglobeandmail.com/opinion/article-the-gops-descent-into-madness-puts-american-democracy-at-risk/

  9. Larry/ON Says:

    Hi Paula. Andrew Coyne may be the best journalist in Canada. I also like Chantel Hebert when she is on the panel on CBC National. She is so insightful.

  10. Ron/BC Says:

    Paula
    Here is a chart of ZEB.to Financials plus a ratio chart above of ZEB.to:Xiu.to that does prove what you suggest being Financials are boosting the value of XIU.to, since May at least. But price like many markets are a long,long ways from their 200emas.

    https://stockcharts.com/h-sc/ui?s=ZEB.TO&p=D&yr=1&mn=6&dy=0&id=p31849920666&a=678874213

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