Pre-opening Comments for Thursday January 21st
U.S. equity index futures were higher this morning. S&P 500 futures were up 8 points in pre-opening trade.
Index futures were virtually unchanged following release of economic news at 8:30 AM EST. Consensus for December U.S. Housing Starts was an increase to 1.560 million units from 1.547 million units in November. Actual was 1.669 million units . Consensus for Weekly Jobless Claims was a drop to 910,000 from revised 926,000 last week. Actual was 900.000. Consensus for the January Philly Fed Index was an increase to 12.0 from 9.1 in December. Actual was 26.5.
Alcoa dropped $0.77 to $44.75 despite reporting higher than consensus fourth quarter earnings.
![clip_image001[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2021/01/clip_image0011-5.png "clip_image001[1]")
United Airlines slipped $0.43 to $44.75 after reporting a higher than consensus fourth quarter loss.
![clip_image002[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2021/01/clip_image0021-7.png "clip_image002[1]")
Kinder Morgan added $0.38 to $15.97 after reporting higher than consensus fourth quarter revenues and earnings.
![clip_image003[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2021/01/clip_image0031-6.png "clip_image003[1]")
Travelers gained $2.48 to $147.50 after reporting higher than consensus fourth quarter earnings.
![clip_image004[1]](http://www.timingthemarket.ca/techtalk/wp-content/uploads/2021/01/clip_image0041-6.png "clip_image004[1]")
EquityClock’s Daily Comment
Following is a link:
http://www.equityclock.com/2021/01/20/stock-market-outlook-for-january-21-2021/
Note seasonality chart on Netflix.
Technical Notes for Wednesday January 20th
Technology SPDRs (XLK) moved above $131.40 to an all-time high extending an intermediate uptrend.
TSX Technology iShares (XIT) moved above $47.01 to an all-time high extending an intermediate uptrend.
Amex Biotech ETF (FBT) moved above $189.64 to an all-time high extending an intermediate uptrend.
Intuit (INTU), a NASDAQ 100 stock moved above $387.32 to an all-time high extending an intermediate uptrend.
Open Text (OTEX), a TSX 60 stock moved above US$47.13 to an all-time high extending an intermediate uptrend.
Netflix (NFLX), a NASDAQ 100 stock moved above $575.37 to an all-time high extending an intermediate uptrend.
Alphabet (GOOGL and GOOG), an S&P 100 stock moved above $1,843.83 and $1,847.20 respectively to an all-time high extending an intermediate uptrend.
U.S. Home Construction iShares (ITB) moved above $60.78 to an all-time high extending an intermediate uptrend. President Biden has promised to give first time home buyers a $15,000 tax credit
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for January 20th 2021
Green: Increase from previous day
Red: Decrease from previous day
Commodities
Daily Seasonal/Technical Commodities Trends for January 20th 2021
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for January 20th 2021
Green: Increase from previous day
Red: Decrease from previous day
The Canadian Technician
Greg Schnell discusses “MANGA-Back to Leadership Role”. Following is a link:
MANGA – Back To Leadership Role | The Canadian Technician | StockCharts.com
Market Buzz
Greg Schnell notes that his top technical momentum indicator shows the S&P 500 Index currently at its most overbought level in the past 80 years, but has yet to show signs of peaking. Following is a link:
https://www.youtube.com/watch?v=2lrekTdYr0s&feature=youtu.be&ab_channel=StockCharts
S&P 500 Momentum Barometers
The intermediate Barometer advanced 5.01 to 78.16 yesterday. It remains intermediate overbought.
The long term Barometer added 0.40 to 91.58 yesterday. It remains extremely long term overbought.
TSX Momentum Barometers
The intermediate Barometer added 1.95 to 68.93 yesterday. It remains intermediate overbought.
The long term Barometer gained 1.15 to 80.10 yesterday. It changed from long term overbought to extremely long term overbought on a return above 80.00.
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
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January 21st, 2021 at 9:51 am
AAPL – Looks like it want to make a push to the all-time high. Very attractive chart. I would call it an ascending triangle.
January 21st, 2021 at 10:41 am
F – The two day move is just crazy. Sometimes these stocks are trading completely outside the Bollinger Band and the herd is underinvested and wants to get in. You just have to close your eyes and hit the buy button instead of waiting for it to get back below the BB which is what I found myself doing yesterday.
Best performing automotive stocks over the past month are GM and F. Target on GM is around 70 and it is at 56. TSLA and NIO are out of favour now.