Tech Talk for Friday January 29th 2021

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Morning Technical Notes for Friday January 29th

Walmart (WMT), a Dow Jones Industrial Average stock moved below $142.30 setting an intermediate downtrend.

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Moderna (MRNA), a NASDAQ 100 stock moved above $178.50 to an all-time high extending an intermediate uptrend.

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Lithium ETN (LIT) moved below $67.56 completing a short term double top pattern.

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Pre-opening Comments for Friday January 29th

U.S. equity index futures were lower this morning. S&P 500 futures were down 27 points in pre-opening trade.

Equity index futures were virtually unchanged following release of economic news at 8:30 AM EST. Consensus for December Personal Income was an increase of 0.1% versus a decline of 1.1% in November. Actual was an increase of 0.1%. Consensus for December Personal Spending was a decline of 0.4% versus a drop of 0.4% in November. Actual was a decline of 0.4%.

The Canadian Dollar was virtually unchanged at US78.25 cents following release of Canada’s November GDP. Consensus was an increase of 0.3% versus a gain of 0.4% in October. Actual was an increase of 0.7%.

Visa gained $2.98 to $201.20 following release of better than expected fourth quarter revenues and earnings. The company also announced extension of its share buyback program

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Caterpillar added $7.36 to $191.70 after reporting higher than consensus fourth quarter revenues and earnings.

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Chevron dropped $1.12 to $87.90 after reporting lower than consensus fourth quarter revenues and earnings.

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EquityClock’s Daily Comment

Following is a link:

http://www.equityclock.com/2021/01/28/stock-market-outlook-for-january-29-2021/

 

Technical Notes from Yesterday

McDonald’s (MCD), a Dow Jones Industrial Average stock moved below $205.94 resuming an intermediate downtrend.

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Rogers Communications (RCI), a TSX 60 stock moved below $58.33 extending an intermediate downtrend

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Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for January 28th 2021

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Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for January 28th 2021

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Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for January 28th 2021

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Green: Increase from previous day

Red: Decrease from previous day

The Canadian Technician

Greg Schnell says, “Airlines struggle with takeoff”. Following is a link:

Airlines Struggle With Taking Off | The Canadian Technician | StockCharts.com

 

S&P 500 Momentum Barometers

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The intermediate Barometer recovered 9.02 to 55.31 yesterday. It remains intermediate neutral.

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The long term Barometer was unchanged yesterday at 88.38. It remains extremely long term overbought.

TSX Momentum Barometers

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The intermediate Barometer recovered 6.31 to 50.97 yesterday. It remains intermediate neutral.

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The long term barometer added 2.43 to 76.70 yesterday. It remains long term 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




14 Responses to “Tech Talk for Friday January 29th 2021”

  1. Larry/ON Says:

    Citron Research says it will no longer publish short reports and will now focus on long opportunities. This was the funniest thing I read today. I can just imagine Citron publishing a report on all their short positions which is then obtained by some people on Reddit who promptly launch an attack on all of Citron’s short trades. It’s like walking defenceless onto a battlefield waving a great big flag with the opposition waiting with their finger on the trigger of a massive gun. I have seen too many short selling traders really engaging in what amounts to slander against companies trying to spook investors and I think many people take satisfaction in seeing them get hammered.

  2. Larry/ON Says:

    Tobi Lutke CEO of SHOP is having fun with CITRON retweeting a tweet Citron had made in 2019 about how SHOP stock was going to crater.
    Citron Research April 4, 2019
    “$SHOP to trade down to $100 next 12 months. Growth story changed the past 30 days…Citron will donate $200k to Robin Hood Found if $SHOP higher than today in one year.”
    Tobi Lutke today
    “Citron seems to have deleted this tweet. I hope Andrew made good on his promise, Either way – I’ll make a $200k donation to the charity today.”

  3. Steph Says:

    Larry, I hope he made good on his pledge as well. I have a tremendous respect for short sellers but do not have the stomach to act. I do find it strange Muddy Waters sends me their research free of change.

    One of my past posts on oil service stocks. I have changed my view on small and mid caps being taken out as they may be worthless. There are just too many pieces of equipment chasing too few projects for the next 36 months. Oil will rocket to $75 in 2022 and the biggest have cut costs and will benefit most. Schumberger, Baker Hughes & Halliburton will capture most of new contracts.

    On the opposite side of the coin, I went into Tesla in Boca the other day (yes everything is wide open), It really looks like a ten year old Toyota Camry with a big TV screen for $100K. Am I missing something? I don’t drive enough anymore to justify such an expense.

    Ron/BC any charts on Tesla ugliness vs competition?

  4. tony Says:

    Hey guys,
    Heres a an article I stumbled upon Barron’s

    I really think at this point it calls upon the regulators, in this case, the New York Stock Exchange, to consider simply suspending it for a month and stop trading it,” William Galvin, the Secretary of the Commonwealth of Massachusetts, told Barron’s. “These small and unsophisticated investors are probably going to get hurt by this.”

    If they halt, it will only give the big guns time to refocus their strategy and clubber it and wipe out most little investors.

    I still can’t believe we have circuit breakers for stocks that stumble but not if they spike up on no news. I will let them think a better way of avoiding spikes on no news.

  5. Ron/BC Says:

    Here is a chart of the SEASONAL TREND of the $SPX. This shows how the broad market typically sells off into mid March. Not a guarantee of a repeat but a likelihood. There are a lot of reasons for this if you are into stories but it is what it is.

    https://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=1&mn=0&dy=0&id=p74699612104&a=682178007

  6. Ron/BC Says:

    RE: #4
    Here is the seasonal trend chart for the $SPX.

    https://charts.equityclock.com/sp-500-index-seasonal-chart

  7. Tony Says:

    I m in the same camp as Ron spx is going south

  8. Bernie Says:

    Betting on something to lose doesn’t sit well with me. If they made short selling illegal it would eliminate short squeezes. Sounds ethical to me.

  9. Dave Says:

    So it’s the little guys against the top dogs. Which is the next stock they are buying, does anyone know?

  10. still_learning Says:

    They are already onto Silver, the commodity. I’ve done alright these last few days with my holding of the Can. silver miner PAAS.TO. Apparently, Majestic Silver in the U.S. has really taken off?

  11. Pat/Vic Says:

    Here is a clip of Jim Cramer admitting how he used dirty tricks to short stocks in 2006

    https://www.youtube.com/watch?v=VMuEis3byY4

    Cheers,Pat

  12. Paula Says:

    Pat/Vic
    Thanks for posting this. Interesting that this podcast was deleted but “captured for posterity” by Judd Bagley.
    It just confirms my instinct to distrust anything Cramer says.

  13. Ana Says:

    #5 & #6 Ron/BC

    Thank you for the great posts, Ron/BC.

    #9 Dave

    Except the “big guys” manage retirement funds, too.

    When the “little guys” drive up stocks that are so beyond their value does nothing else but point out to the general public that the stock market is manipulated and therefore the stock market can not be trusted.

    Feeling bad for someone buying a stock that is so beyond it’s value, who do you think will eventually get stuck with a loss?

    Stay healthy everyone.

  14. Ron/BC Says:

    Ana

    Thanks for the positive comment. I agree entirely with your perception of the effect of this wild run up of a few manipulated stocks. With the press constantly talking about it that will convince the general public that the stock market truly is a crap shoot and a bad place to invest your money. And the stock market didn’t need any more negativity as far as honesty & fairness goes.

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