Tech Talk for Wednesday February 17th 2021

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Morning Technical Notes for Wednesday February 17th

Tesla (TSLA) moved below $780.10 completing a double top pattern.

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Take Two Interactive (TTWO), a NASDAQ 100 stock moved below $191.81 completing a double top pattern.

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Pre-opening Comments for Wednesday February 17th

U.S. equity index futures were lower this morning. S&P 500 futures were down 5 points in pre-opening trade.

Index futures moved lower on inflation fears following release of economic news at 8:30 AM EST. Consensus for the January Producer Price Index was an increase of 0.4% versus a gain of 0.3% in December. Actual was an increase of 1.3%. Excluding food and energy, consensus was an increase of 0.2`% versus a gain of 0.1% in December. Actual was an increase of 1.2%. Consensus for January Retail Sales was an increase of 1.2% versus a drop of 0.7% in December. Actual was an increase of 5.3% .Excluding auto sales, consensus was an increase of 1.0% versus a drop of 1.4% in December. Actual was an increase of 5.9%

The Canadian Dollar was virtually unchanged at US78.71 cents following release of the January Consumer Price Index at 8:30 AM EST. Consensus was an increase of 0.4% versus a drop of 0.2% in December. Actual was an increase of 0.6%.

Shopify slipped $28.49 to $1,445.51 despite reporting higher than consensus fourth quarter revenues and earnings.

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Agilent Technologies advanced $2.55 to $130.50 after reporting higher than consensus quarterly revenues and earnings.

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Chevron added $3.80 to $96.92 on news that Berkshire Hathaway has purchased a position in the stock.

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EquityClock’s Daily Comment

Following is a link:
http://www.equityclock.com/2021/02/16/stock-market-outlook-for-february-17-2021/

Technical Notes for Tuesday February 16th

Financial SPDRs (XLF) moved above $31.62 to an all-time high extending an intermediate uptrend.

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Strength in Financial SPDRs was led by JP Morgan (JPM), a Dow Jones Industrial Average stock moving to an all-time high above $142.75

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Bank of America (BAC), an S&P 100 stock moved above $34.37 extending an intermediate uptrend.

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U.S. Bank stocks and related ETFs are benefitting from a widening in U.S. interest rate spreads: Short term rates remain low while longer term interest rates are rising (i.e. U.S. medium and long term bond prices are moving lower. Intermediate term U.S. Treasuries extended their downtrend yesterday by moving below $117.49

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Canadian Bank stocks also are responding to widening short term/long term rates in Canada. They also are on the move prior to release of their fiscal first quarter results at the end of this month. Commerce Bank (CM) a TSX 60 stock moved above $114.21 to an all-time high.

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Scotia Bank (BNS), a TSX 60 stock moved above $71.17 and $71.26 to a 3 year high extending an intermediate uptrend.

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Dow Jones Transportation Average and its related ETF (IYT) moved above 13,208.63 and $232.97 respectively to all-time highs extending an intermediate uptrend.

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Energy SPDRs (XLE) moved above $45.00 extending an intermediate uptrend. Triggered by record low temperatures in the southern U.S.! Crude oil, gasoline, natural gas and heating oil prices were sharply higher in overnight trade.

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Conoco Phillip (COP) responded to higher prices by moving above $$47.85 extending an intermediate uptrend.

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Canadian energy stocks also responded strongly to overnight strength in oil, gasoline and natural gas prices. Canadian Natural Resources, (CNQ), a TSX 60 stock moved above $34.75 extending an intermediate uptrend.

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Cenovus (CVE), a TSX 60 stock moved above $8.78 extending an intermediate uptrend.

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European equities and related ETFs are breaking to all-time highs. Eurozone iShares (EZU) moved above $45.84 extending an intermediate uptrend.

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Europe iShares (EZU) that include a U.K. component moved above $49.91 extending an intermediate uptrend.

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U.K. iShares (EWU) moved above $31.27 to an all-time high extending an intermediate uptrend.

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Germany iShares (EWG) moved above $33.01 to a three year high extending an intermediate uptrend.

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Base Metal stocks and related ETFs moved strongly higher thanks to strength in base metal and lithium prices. Lithium ETN (LIT) moved above $72.95 to an all-time high extending an intermediate uptrend.

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Base metals ETF on the TSX (XBM) moved above $16.80 to an all-time high extending an intermediate uptrend.

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Base metals ETF in the U.S. (PICK) moved above $41.60 to an all-time high extending an intermediate uptrend.

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Ditto for BMO Equal Weight Base Metals ETF (ZMT) on a move above $55.97!

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The largest base metal stocks in the world led the advance in base metal ETFs. BHP Billiton moved above $74.41 to an all-time high extending an intermediate uptrend. Rio Tinto moved above $86.90 to an all-time high extending an intermediate uptrend.

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In Canada, First Quantum (FM), a TSX 60 stock was a leader on a move above $26.72.

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On the other hand, Canadian gold stocks and related ETFs (e.g. XGD) remained under technical pressure. Agnico-Eagle (AEM), a TSX 60 stock moved below Cdn$81.12 extending an intermediate downtrend.

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Bristol-Myers (BMY), an S&P 100 stock moved below intermediate support at $59.45

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Frontier iShares (FM) moved above $29.94 extending an intermediate uptrend.

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Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for February 16th 2021

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for February 17th 2021

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Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for February 17th 2021

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Green: Increase from previous day

Red: Decrease from previous day

 

S&P 500 Momentum Barometers

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The intermediate Barometer slipped 2.61 to 69.74 yesterday. It remains intermediate overbought.

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The long term Barometer eased 0.20 to 88.38 yesterday. It remains extremely intermediate overbought.

 

TSX Momentum Barometers

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The intermediate Barometer slipped 0.81 to 66.18 yesterday. It remains overbought.

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The long term Barometer slipped 2.31 to 76.33 yesterday. It remains 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




2 Responses to “Tech Talk for Wednesday February 17th 2021”

  1. Larry/ON Says:

    The real estate market is just going crazy on all this cheap money. It doesn’t matter where the location is. It doesn’t have to be commuting distance to a major city. There are bidding wars everywhere. I remember when my father bought our family cottage in 1981 and interest rates were close to 20%. He was able to get a vendor take back mortgage at a much lower rate at that time. When I bought my place in 2012 you still negotiated down from the asking price. When my daughter bought her place in 2017 you had to win a bidding war and you had no idea what the other bidders are offering. Sometimes the vendor’s agent would take the top two bids and pit them against each other. It’s like that now but with even lower interest rates juicing the whole market and an even lower supply. Real estate has never experienced a real “bear market” in Toronto since the early 90s.

  2. Larry/ON Says:

    TSLA – Tech Talk says a double top pattern has been completed with the drop below 780.10. I’m curious to see how this plays out because it tagged the 50day MA and rose back up.
    AAPL – It has been weak since late Jan. Dropped below the 50day MA and tagged the bottom of the Bollinger Band. Sto at 22. AAPL has not stayed long below the 50 day MA since the March market drop.
    MSFT – Steady and as exciting as watching paint dry.
    Financials really strong. XLF broke above the Jan high yesterday. I find the PEs high on US banks while Cdn trade at a real discount. Considering all those new mortgages in the crazy real estate market maybe we are going to see some good earnings reports going forward.

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