Tech Talk for Thursday October 28th 2021

Daily Reports Add comments

Pre-opening Comments for Thursday October 28th

U.S. equity index futures were higher this morning. S&P 500 futures were up 14 points in pre-opening trade.

Trading volume was relatively quiet this morning prior to release of annualized third quarter real GDP at 8:30 AM EDT. Consensus is growth at a 2.8% rate versus growth at a 6.7% in the second quarter.

Ford added $1.36 to $16.87 after reporting higher than consensus third quarter results. The company also raised guidance for the fourth quarter and proposed resumption of a dividend payment.

clip_image001

eBay dropped $0.84 to $76.82 reporting lower than consensus fourth quarter revenues. The company also lowered guidance.

clip_image002[1]

KLA Tencor added $11.43 after reporting higher than consensus third quarter earnings.

clip_image003[1]

Aflac slipped $0.99 to $55.01 after reporting lower than consensus third quarter revenues.

clip_image004

 

EquityClock’s Daily Comment

Following is a link:

http://www.equityclock.com/2021/10/27/stock-market-outlook-for-october-28-2021/

 

Technical Notes released yesterday at

StockTwits.com@EquityClock

New Home Sales showed an abnormal jump last month, rising by 14.0%, representing the second largest September increase on record. The average change is a decline of 5.5%. $MACRO $STUDY $XHB $ITB $LEN $PHM $TOL #Economy #Housing

clip_image002

The ratio of bonds over stocks has broken below declining trendline support that has been intact for over a decade, but the move just confirms our bias towards the latter. equityclock.com/2021/10/26/… $STUDY $SPX $SPY $IEF $TLT

clip_image003

Clean energy stock Enphase surging by almost 30% today following a strong earnings report for the third quarter. We provided favorable comments on the stock and the industry in our Market Outlook for October 25th. Seasonally, the stock tends to gain, on average, through the last couple of months of the year. $ENPH $TAN $ICLN

clip_image005

Solar ETF $TAN moved above $93.49 resuming an intermediate uptrend.

clip_image006

Corn ETN $CORN moved above $20.73 setting a short term uptrend.

clip_image007

U.S. infrastructure ETF $PAVE moved above $27.75 to an all-time high extending an intermediate uptrend. Responding to imminent expectation for signing of an infrastructure bill by U.S. Congress

clip_image008

Lululemon $LULU a NASDAQ 100 stock moved above $437.32 to an all-time high extending an intermediate uptrend.

clip_image009

Alphabet $GOOG a NASDAQ 100 stock moved above $2936.41 to an all-time high extending an intermediate uptrend.

clip_image010

Visa $V an S&P 100 stock moved below $216.31 completing a Head & Shoulders pattern.

clip_image011

Capital One $COF an S&P 100 stock moved below $152.13 completing a Head & Shoulders pattern.

clip_image012

Texas Instruments $TXN a NASDAQ 100 stock moved below support at $186.52 following release of less than consensus third quarter revenues.

clip_image013

Twitter $TWTR a NASDAQ 100 stock moved below $57.64 following release of quarterly results extending an intermediate downtrend.

clip_image014

Fiserv $FISV a NASDAQ 100 stock moved below $102.68 and $100.36 extending an intermediate downtrend

clip_image015

 

Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for Oct.27th 2021

clip_image017

Green: Increase from previous week

Red: Decrease from previous week

 

Commodities

Daily Seasonal/Technical Commodities Trends for Oct.27th 2021

clip_image019

Green: Increase from previous week

Red: Decrease from previous week

 

Sectors

Daily Seasonal/Technical Sector Trends for Oct.27th 2021

clip_image021

Green: Increase from previous week

Red: Decrease from previous week

All seasonality ratings are based on performance relative to the S&P 500 Index (except TSX)

 

Links offered by valued providers

Thank you to Mark Bunting and www.uncommonsenseinvestor.com for the following links:

 

BANG: Why Gold Miners Could Make FAANG Look Tame – Uncommon Sense Investor

Editor’s Note: Period of seasonal strength for the sector starts in mid-December.

 

Scary Headline Alert: "Next Bear Market Will Be the Worst in My Lifetime" – 11 Ideas to Survive It. – Uncommon Sense Investor

Editor’s Note: Another favourable comment on precious metals, but from a different angle.

Market Buzz by Greg Schnell

Headline reads, “Charting to Bitcoins and Tesla to trade”

https://www.youtube.com/watch?v=jthbJSD93oM

 

S&P 500 Momentum Barometers

clip_image022

The intermediate term Barometer dropped 7.41 to 57.31 yesterday. It changed from Overbought to Neutral on a drop below 60.00.

clip_image023

The long term Barometer dropped 3.41 to 71.54 yesterday. It remains Overbought.

 

TSX Momentum Barometers

clip_image024

The intermediate term Barometer plunged 10.34 to 58.74 yesterday. It changed from Overbought to Neutral on a move below 60.00.

clip_image025

The long term Barometer dropped 3.58 to 64.08 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




12 Responses to “Tech Talk for Thursday October 28th 2021”

  1. Larry/ON Says:

    SU – That’s a huge breakout taking out the June high. Even with today’s run up the div has been increased to over 5% yearly. Share buy backs also planned. Target of 39 by BMO. This is all irrespective of my post yesterday on how the price of crude is vulnerable short-term.

  2. Ron/BC Says:

    Here is a chart of the ZEB.to which is the equal banks ETF. Overlaid is the 5ema, 8ema, 13ema, 21ema,34ema and 50ema along with the long term 200ema. The bulk of these exponential moving averages are Fibonacci levels. What one can do with any chart with these emas on them is watch for the 5ema to cross the 8ema for the first signal that price is breaking down. Or if one is a longer term trader wait for the 8ema to cross below the 13ema or the 8ema to cross below the 34ema. This takes the over analyzing out of the chart and keeps it mechanical so you don’t get fooled by exaggerated news. After all “Price is King” and will reflect all realities. Also overlaid the chart is Slow Stochastics to easier see the comparison of it and price action. One can overlay any of these Momentum indicators over price to compare its value to price. This is just one more way to value a price chart. Unfortunately any unexpected & shocking news can affect prices so there is no holy grail.

    https://stockcharts.com/h-sc/ui?s=ZEB.TO&p=D&yr=1&mn=0&dy=0&id=p45721222644&a=678874213

  3. Ron/BC Says:

    Paula
    Here is a chart pattern that I’ve traded before and keeps it simple. Price of XSU.to ETF has been in a sideways channel for about one year. The way to trade it is to buy at the bottom of the channel and sell near the top of the channel. Some riskier traders will also short it near the top and ride it to the bottom of the channel but that is risky as the overall chart pattern has developed from a rising price trend and favors breaking out on the upside. The first stock I ever traded had a chart pattern channel like this and I traded it from bottom to top and would make $500 each time up and that was on a low price stock. It worked like a charm until it finally broke out on the upside and my channel was gone. I got that from the book “Technical Analysis of Stock Trends” by Edwards and Magee which is referred to as the Bible of Technical Analysis. Heavy book but lots of good setups to trade. So one can just trade channels to keep it simple. And you don’t even have to listen to the financial news.

    https://stockcharts.com/h-sc/ui?s=XSU.TO&p=D&yr=2&mn=0&dy=0&id=p74545764023&a=673066108

  4. Paula Says:

    Ron/BC,

    Thanks for the chart and analysis of XSU.TO. I actually traded that one a few years back before Covid, then dropped it – I was trying to narrow my focus and of course, develop patience – an ongoing project LOL. I am familiar with the Edwards and Magee book and that they are where a lot of the chart patterns come from but I have not actually read it.

    Here is something that I may have lucked in on: HCLN.TO based on the U.S. ICLN. I started buying this as the 20ema was crossing above the 50ema earlier this month. It looks like an ascending triangle that has broken out of a level of resistance ~ 15.65 – 15.85 and now testing the 16.34 – 16.48 level. I consider this a trade, not an investment.

    https://schrts.co/hpQdGjuj

  5. Ron/BC Says:

    Paula
    Nice looking charts with breakouts after a lot of consolidation. What I dont see is why trade the low volume HCLN.to rather than the ICLN.

    https://stockcharts.com/h-sc/ui?s=ICLN&p=D&yr=2&mn=0&dy=0&id=p60551787507&a=1051795271

    https://stockcharts.com/h-sc/ui?s=HCLN.TO&p=D&yr=1&mn=0&dy=0&id=p28479992705&a=1051787558

  6. Larry/ON Says:

    I am amazed at the number of tech CEO’s from India. If your mega cap tech company doesn’t have an Indian born CEO you didn’t do well this quarter. AMZN – Jeff Bezos, AAPL – Tim Cook
    Winners: Satya Nedella -MSFT, Sundar Pichai – GOOGL
    If you want to own semis stay away from white bread and go with east Asians:
    Winners NVDA – Jensen Huang, AMD – Lisa Su, AVGO – Hock Tan
    Loser Semis – INTC – Patrick Gelsinger, TXN – Rich Templeton

  7. bruce Says:

    larry……interesting observation….I would also apply that to the Doctors I see interviewed on tv…..

  8. Paula Says:

    Ron/BC
    RE #5
    Good point. Just happen to have more Canadian $ available.

  9. Larry/ON Says:

    Bruce – I think I should lie low for a bit after pushing the envelope with my humour.

  10. Ron/BC Says:

    Paula

    Yes, I’ve done the same thing in the past. Very frustrating having the bulk of your money in one currency and then finding a great chart pattern but it’s in the other currency. That’s why recently I put plenty of both currencies in my trading account so that wont matter anymore. Right now the interest rates offered from the financial institutions is lower than I like so don’t mind putting it in a simple trading account. I expect rates to jump up soon though but it’s easy enough to transfer funds other than the time it takes to actually see it moved over.

  11. Paula Says:

    Ron/BC,
    I agree. Currency is a consideration. For that reason XSU.TO is similar to IWM but not exactly the same. I think this subject has come up before. As long as the underlying ETF/index has high volume I don’t think it really matters.

  12. Ron/BC Says:

    Paula
    Yes they both track much the same in a tight range. Much cheaper to buy XSU.to though rather than IWM.

    https://stockcharts.com/h-sc/ui?s=IWM&p=D&yr=2&mn=0&dy=0&id=p11587706858&a=801703941

Entries RSS Comments RSS Log in