Tech Talk for Tuesday February 9th 2021

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Pre-opening Comments for Tuesday February 9th

U.S. equity index futures were lower this morning. S&P 500 futures were down 7 points in pre-opening trade. Investors are waiting for news from the Trump impeachment trial starting at 1:00 PM EST today.

Carnival slipped $0.22 to $21.39 after JP Morgan lowered its target price from $25 to $23

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Autodesk was unchanged at $302.81 after Stifel Nicolaus raised its target price from $285 to $342.

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Ford was unchanged at $15.56 after Argus Research upgraded the stock from Hold to Buy.

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EquityClock’s Daily Comment

Following is a link:

http://www.equityclock.com/2021/02/08/stock-market-outlook-for-february-9-2021/

Note comments on China.

Technical Notes for Monday February 8th

Dow Jones Industrial Average moved above 31,272.22 to an all-time high extending an intermediate uptrend. Also, its related ETF, DIA moved above $312.71 to an all-time high.

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Disney (DIS), a Dow Jones Industrial Average stock moved above $183.40 to an all-time high extending an intermediate uptrend.

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Far East equity markets continue to moving higher. Most reached all-time or multi-year highs. The Nikkei Average moved above 28,979.53 to a multi-year high extending an intermediate uptrend.

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Italy iShares (EWI) moved above $30.65 extending an intermediate uptrend

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Equal Weight S&P 500 ETF (RSP) moved above $132.98 to an all-time high extending an intermediate uptrend.

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Mid-Cap SPDRs (MDY) moved above $452.16 to an all-time high extending an intermediate uptrend.

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Uranium equity ETF (URA) moved above $17.04 extending an intermediate uptrend.

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Southern Copper (SCCO), one of the world’s largest copper miners moved above $72.00 to an all-time high extending an intermediate uptrend.

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Shopify (SHOP), a TSX 60 stock moved above $1,658.79 to an all-time high extending an intermediate uptrend.

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India ETF (PIN) moved above $24.49 to an all-time high extending an intermediate uptrend.

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Timber and Forestry iShares (WOOD) moved above $83.74 to an all-time high extending an intermediate uptrend.

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CCL Industries (CCL.B), a TSX 60 stock moved above $62.98 extending an intermediate uptrend.

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U.S. Oil & Gas Exploration ETF (XOP) moved above $72.47 extending an intermediate uptrend.

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Strength by the U.S. Oil & Gas Exploration ETF was led by the “gassy” First Trust Natural Gas Equity ETF (FCG on a move above $11.27

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Canadian “gassy” stocks continue to move higher. Freehold Royalties (FRU) moved above $6.28 extending an intermediate uptrend. PrairieSky Royalties (PSK) moved above $11.60 extending an intermediate uptrend. ARC Resources (ARX) moved above $7.40 extending an intermediate uptrend. According to BNNBloomberg, spot natural gas prices spiked to over $4.00 per Mbtu over the weekend, up from $2.91 on February 1st

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ExxonMobil (XOM), a Dow Jones Industrial Average stock moved above $51.08 extending an intermediate uptrend.

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Take Two Interactive (TTWO), a NASDAQ 100 stock moved above $211.44 to an all-time high extending an intermediate uptrend.

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Phillip Morris (PM), an S&P 100 stock moved above $85.38 extending an intermediate uptrend.

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U.S. investors are anticipating introduction of an infrastructure program later this year. Infrastructure stocks and related ETFs are responding. Infrastructure ETF PKB moved above $45.77 to an all-time high extending an intermediate uptrend.

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Nutrien (NTR), a TSX 60 stock moved above US$55.12 and Cdn$70.21 to a five year high extending an intermediate uptrend. The stock is responding to higher grain prices.

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U.S. Regional Bank SPDRs (KRE) moved above $59.86 extending an intermediate uptrend. Interest rate spreads in the U.S. are widening and profit margins in the sector are increasing.

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Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for February 8th 2021

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for February 8th 2021

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for February 8th 2021

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Green: Increase from previous day

Red: Decrease from previous day

 

Technical Scoop

Thank you to David Chapman and www.EnrichedInvesting.com for a link to their weekly comment. Headline reads,” Euphoria reigns, commodities rise, yields increase, fossils cycle, supply tightens, jobs disparity, faltered gold”. Following is the link:

Euphoria-reigns-commodities-rise-yields-increase-fossils-cycle-supply-tightens-jobs-disparity-faltered-gold.pdf (enrichedinvesting.com)

 

S&P 500 Momentum Barometers

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The intermediate Barometer added 1.80 to 73.55 yesterday. It remains intermediate overbought.

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The long term Barometer added 0.60 to 90.58 yesterday. It remains extremely long term overbought.

 

TSX Momentum Barometers

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The intermediate Barometer added 6.25 to 69.71 yesterday. It remains intermediate overbought.

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The long term Barometer added 1.92 to 79.33 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




11 Responses to “Tech Talk for Tuesday February 9th 2021”

  1. Larry/ON Says:

    SHOP (Techtalk provides chart above)- If you look at the chart and compare it to a chart of AMZN, AMZN looks like SHOP shortly before its’ break higher. It’s a long coil with the rising 200 day MA compressing against the bottom of the sideways trading range. AMZN currently at 3322 with one-year average target of 4,000 which is quite realistic technically and fundamentally considering the anticipated rise in EPS dropping the PE from trailing 79 to forward 50.

  2. Bernie Says:

    Ron/BC

    I’m interested in hearing your views on starting a position in ZLB.TO.

  3. xh Says:

    Re: ENB.to yesterday

    Ron/BC
    Thank you for being so helpful! I try not to get into the habit of asking your help.

    FishFat
    Good chart and insight. Thank you for pointing out the negative divergence of the RSI & MACD. Also it’s the first time I’ve heard the MACD Wedge Pattern.

    ENB is undervalue and I have mid to high $50 price target in mind similar to Bman/Van, but I’m not sure it will get there since there are so much negative sentiment against fossil fuel.

    Ex-dividend date feb. 11, oil stocks seasonality starts in two weeks.

  4. Ron/BC Says:

    XH

    Here is a link with charts to show & explain exactly WEDGE patterns. The key of course for a bullish Wedge is to wait for price to clear the upper downtrendline of the pattern.

    https://en.wikipedia.org/wiki/Wedge_pattern

  5. FishFat Says:

    Ron/BC re: Wedge Patterns

    I have only ever see wedge patterns applied to the price – as in your wikipedia link.

    However, my experience is that there is also be a correlation between wedge patterns on the MACD indicator and price movement. Not sure if this is a reliable thing.

  6. Ron/BC Says:

    FishFat
    I’ve never looked for MACD “price patterns” before as they would be momentum indicators. I guess what stopped me from looking at them that was was seeing rising lows on the Macd with lower prices (positive divergence)That stopped me from trying to compare them that way. But probably not such a bad idea to look at them that way.

  7. bobj Says:

    Re: ENB, the big overhang is, Michigan has given ENB 90 Days to shut down line 5 supplying
    Sarnia with 300k bbd. due date June 1st 2021. This has been raised in Ottawa, Liberal no answer yet!

  8. Bernie Says:

    bobj,

    Re: #7
    I can see the shutdown leading to yet another increase in the far less safe oil transport by rail and of imported oil by tanker. The extra business should benefit CNR and CP shareholders but not ENB or our Canadian economy.

  9. Mary Says:

    Hope everyone held on tight to their POT stock. CGC earnings received well by market today.

  10. dave/ab Says:

    Hi Flatfish

    I use to look at MACD to look if something is oversold or overbought. It is more of a lagging indicator when it comes to price points and crossovers. If a stock is moving sideways I didn’t find as much value with this indicator. Is this kind of what you are saying about wedge patterns and MACD?

    Mary #9

    cannabis is proving me wrong this week. Some good follow-through. Looking good at this moment. Watching intraday charts. What are your thoughts/play for the rest of this week on Cannabis?

  11. Mary Says:

    dave/ab

    Wish I could tell you, but being busy at work kept me probably in the trade. Cannabis may have some pullback but its the new game in town. Thanks to the new administration on the other side so is Bitcoin.

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