Tech Talk for Tuesday December 21st 2021

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Pre-opening Comments for Tuesday December 21st

U.S. equity index futures were higher this morning. S&P 500 futures added 40 points in pre-opening trade.

The Canadian Dollar added 0.03 to US77.38 cents following release of Canada’s October Retail Sales at 8:30 AM EST. Consensus was an increase of 1.0%. Actual was an increase of 1.6%.

Nike gained $2.02 to $159.00 after reporting higher than consensus second quarter sales and earnings.

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Micron advanced $5.37 to $87.40 after reporting higher than consensus fiscal first quarter revenues. The company also offered positive guidance.

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General Mills dropped $1.29 to $66.50 after the company reported lower than consensus fiscal second quarter earnings.

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Rite Aid gained $0.35 to $12.75 after the company reported higher than consensus adjusted third quarter earnings.

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EquityClock’s Daily Comment

Following is a link:

http://www.equityclock.com/2021/12/20/stock-market-outlook-for-december-21-2021/

 

Technical Notes released yesterday at

StockTwits.com@EquityClock

Canadian Dollar $CDW moved below US77/54 and US77.43 cents extending an intermediate downtrend.

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TSX Composite Index $TSX.CA moved below 20,464.60 setting a short term downtrend

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NASDAQ 100 Index $NDX moved below $10,543.31 setting a short term downtrend.

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NASDAQ Composite Index $COMPQ moved below 14,931.06 setting a short term downtrend.

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Dow Jones Transportation Average $TRAN moved below 15,472.29 setting an intermediate downtrend.

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A wide variety of S&P 100 and NASDAQ 100 stocks moved below intermediate support this morning including $CPRT $GM $JD $LULU $KMI $GS $VRSK $SPG and $ROST

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Actively traded ETFs that broke intermediate support this morning included $XOP $XLF $XLE $FCG $MDY $TAN $EIS $ECH

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Honeywell $HON a Dow Jones Industrial Average stock moved below $199.18 extending an intermediate downtrend

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TSX 60 stocks that broke intermediate support this morning included $BMO.CA $CNQ.CA $SNC.CA $CNR.CA

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National Bank $NA.CA a TSX 60 stock moved below $95.30 and $94.12 completing a Head & Shoulders pattern.

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Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for Dec.20th 2021

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Green: Increase from previous day

Red: Decrease from previous day

 

Commodities

Daily Seasonal/Technical Commodities Trends for Dec.20th 2021

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Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for Dec.20th 2021

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Green: Increase from previous day

Red: Decrease from previous day

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

 

Next Meeting of Canadian Association for Technical Analysis

Next virtual meeting is held at 8:00 PM EST on Thursday December 23rd. Speaker is Dwight Galusha. Members register at CATA Meeting with Dwight Galusha – Events – Canadian Association for Technical Analysis (clubexpress.com)

 

Seasonality Chart of the Day from www.EquityClock.com

Silver futures and their related ETN: SLV have a period of seasonal strength on a real and relative basis (relative to the S&P 500) from now to at least the end of February.

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Technicals have started to improve on schedule. Nice recent bounce from $21.41! Strength relative to the S&P 500 changed from Negative to Neutral yesterday. Short term momentum indicators (Daily Stochastics, RSI and MACD) recently turned higher from oversold levels.

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S&P 500 Momentum Barometers

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The intermediate term Barometer dropped 10.83 to 39.08 yesterday. It changed from Neutral to Oversold on a move below 40.00 but has yet to show signs of bottoming.

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The long term Barometer dropped 5.01 to 60.52 yesterday. It remains Overbought and trending down.

 

TSX Momentum Barometers

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The intermediate term Barometer dropped 10.00 to 22.27 yesterday. It remains Oversold, but has yet to show signs of bottoming.

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The long term Barometer fell 4.55 to 48.18 yesterday. It remains Neutral and trending down.

 

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 Tuesday December 21st 2021”

  1. Larry/ON Says:

    Mike Santoli on CNBC has been pointing out the horizontal trading range that SPX has been in for a few months with the bottom end of the range at the Sept high. We haven’t broken down from that range. Yesterday’s trading touched the bottom of the range and pulled back higher late day. The comments that TechTalk has been putting out about the tech sector is a little concerning. It’s part of the concern that the environment for higher PE growth stocks will now be more difficult. Prospects for AAPL and MSFT should still be good if more muted. Looking at transports breaking support I would contrast that with SMH as the modern economic growth barometer bouncing off the 50 day MA and up in pre-market on good earnings and guidance by MU.
    In addition to the Fed being less supportive of markets you have other issues such as the derailing of the Build Back Better bill that would have provided economic stimulus and of course Omicron. A possible Russian invasion of Ukraine could shock markets and it may come as early as the second week of January. If Putin wants to do it he won’t want to wait for Ukraine to get more defensive measures in place. The positive possibility is that Omicron is a very quick wave and markets will react positively when there is evidence that we are on the downside of the wave.

  2. Larry/ON Says:

    Re Putin, Ukraine and Europe – Putin Is Now Pushing Threats Quickly Including Dangling His Nukes

    https://www.theglobeandmail.com/world/article-putin-warns-of-unspecified-military-response-if-us-and-nato-continue/

    https://www.theglobeandmail.com/business/industry-news/energy-and-resources/article-european-gas-prices-hit-record-high-after-russian-shipments-to-germany

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