Tech Talk for Friday January 21st 2022

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Pre-opening Comments for Friday January 21st

U.S. equity index futures were lower this morning. S&P 500 futures were down 24 points in pre-opening trade.

The Canadian Dollar was virtually unchanged at US79.85 cents following release of Canada’s November Retail Sales at 8:30 AM EST. Consensus was an increase of 1.2% versus a gain of 1.6% in October. Actual was an increase of 0.7%.

Netflix plunged $98.41 to $409.84 after the company confirmed a slowing in subscriber growth.

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CSX dropped $0.99 to $34.25 despite reporting higher than consensus fourth quarter revenues and earnings.

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Intuitive Surgical fell $15.73 to $277.00 despite reporting higher than consensus fourth quarter revenues and earnings.

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PPG Industries slipped $4.70 to $155.00 despite reporting higher than consensus fourth quarter revenues and earnings.

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EquityClock’s Daily Comment

Following is a link:

http://www.equityclock.com/2022/01/20/stock-market-outlook-for-january-21-2022/

Link offered by a valued provider

Greg Schnell asks “Is it all downhill”? Following is a link:

Is It All Down Hill? | The Canadian Technician | StockCharts.com

 

Interview for Investor’s Digest

Don Vialoux was asked for a “Top Pick” by Investor’s Digest. Selection was Metal and Mining iShares (Symbol: XME Price: US$44.50). Comments are published today.

 

Technical Notes released yesterday at

StockTwits.com@EquityClock

S&P 500 Index moved below intermediate support at 4,495.12 and S&P 500 iShares $SPY moved below intermediate support at $447.35.

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Until the trends of risk aversion abate, caution in portfolio positioning remains appropriate. equityclock.com/2022/01/19/… $XLY $XLP $IWM $XLU $XLV $GLD

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NASDAQ Composite Index $COMPQ moved below intermediate support at 14,181.69 extending an intermediate downtrend.

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More weakness in the U.S. Technology sector! Analog Devices $ADI a NASDAQ 100 stock moved below $162.52 extending an intermediate downtrend.

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Another technology stock breakdown! Applied Materials $AMAT a NASDAQ 100 stock moved below intermediate support at $142.22

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Mid-cap 400 SPDRs $MDY moved below $481.48 and 484.26 completing a double top pattern.

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US Existing home sales fell by 5.0% (NSA) in 2021, which is the second weakest annual performance of the past decade, lagging only the 11.7% calendar-year decline recorded in 2018. Housing tends to be a leading indicator for the economy and the equity market. $STUDY $MACRO $ITB $XHB $WOOD #Economy #Housing

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China large cap iShares $FXI moved above $38.73 extending a short term uptrend.

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Strength in Chinese stocks was led by large cap stocks in the retail/technology sector including $JD $BIDU and $BABA. China technology ETF $CQQQ has completed a short term reverse Head & Shoulders pattern on a move above $63.35 Seasonal influences are strongly favourable to early March. If a subscriber to EquityClock, see seasonality chart at https://charts.equityclock.com/invesco-china-technology-etf-nysecqqq-seasonal-chart

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BMO China ETF $ZCH.CA moved above $20.22 completing a short term reverse Head & Shoulders pattern. Seasonal influences are highly favourable to late February and frequently to late April. If a subscriber to EquityClock, see seasonality chart at

https://charts.equityclock.com/bmo-china-equity-index-etf-tsezch-to-seasonal-chart

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Precious metal stocks continue moving higher. First Majestic Silver $FR.CA moved above Cdn$14.94 completing a double bottom pattern. Seasonal influences are favourable until at least late February and frequently into summer. If a subscriber to EquityClock, see seasonality chart at

https://charts.equityclock.com/first-majestic-silver-corp-tsefr-seasonal-chart

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Nike $NKE a Dow Jones Industrial Average stock moved below $144.11 extending an intermediate downtrend.

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Loblaw Companies $L.CA a TSX 60 stock moved below intermediate support at $94.53

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Gildan Activewear $GIL.CA a TSX 60 stock moved below $48.50 completing a double top pattern.

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Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for Jan.20th 2022

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Green: Increase from previous day

Red: Decrease from previous day

Commodities

Daily Seasonal/Technical Commodities Trends for Jan.20th 2022

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Green: Increase from previous day

Red: Decrease from previous day


Sectors

Daily Seasonal/Technical Sector Trends for Jan.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)

 

Link offered by a valued provider

Sprott clearly is bullish on the precious metals sector. That’s not a surprise. However, the enclosed report offers an extensive and convincing factual report that supports the idea and is worth reading

 

Sprott Monthly Report: 2022 Top 10 Watch List

 

S&P 500 Momentum Barometers

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The intermediate term Barometer plunged another 5.61 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 another 3.81 to 55.71 yesterday. It remains Neutral and continues to trend down.

 

TSX Momentum Barometers

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The intermediate term Barometer dropped 5.99 to 47.25 yesterday. It remains Neutral.

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The long term Barometer slipped 1.90 to 55.50 yesterday. It remains Neutral.

 

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 Friday January 21st 2022”

  1. Ron/BC Says:

    Going over dozens of price charts on Thursday’s close all I can conclude is that the broad market had better start a reversal back up quickly or it’s going to see much more downside. Most of the charts I viewed in most categories closed at or near their lows of the day. Pretty scary bunch of charts…………………..

  2. StiffUpper Says:

    Huge buy programme at 10:20AM EST, mkt reversal, oil up, bonds down USD flat. time will tell if this is a real bounce or not. RON/BC I don’t want to tax your time however wondering if you have thoughts on Long Term trend on S&P500 similar to that of your NASDAQ.
    shovelling all week as we got 54cm of snow up here in Kawarthas. I should be long the makers of Robaxacent muscle relaxers!!

  3. Larry/ON Says:

    SPX tagged the 200dayMA and recovered so far.

  4. Rol Lew Says:

    All I can hope for is, when the broad market starts a reversal back up, I will be lucky enough to pick a couple names that will also go up. So for now, I am exiting, to just wait, and watch the names I am trading, in and out. This week I sold pd.to (profit), cve-t (profit), hcg.to (loss), mara (loss). Holding on to bns-t, (profit) which I have had for 2 yrs. I notice that hac-t is holding up well this week/month (don’t trade it, yet).

    https://stockcharts.com/freecharts/candleglance.html?PD.TO,CVE.TO,HCG.TO,MARA,BNS.TO,HAC.TO|B|0
    with hcg-t and mara, I tried to catch 2 falling knives, and got 2 cuts, but flesh wounds only.
    So even based on the blue moving average entries, it appears to have been possible to make a little profit on pd-t, cve-t, and bns-t. Hac-t would have been doubtful.

    https://finviz.com/screener.ashx?v=211&f=sh_price_o20,ta_highlow52w_nh&ft=4
    Too few new highs today (>$20) to think that today is a good day to buy anything.

    https://finviz.com/screener.ashx?v=211&f=sh_price_o20,ta_highlow52w_nl&ft=4
    versus about 400 new 52 wk lows.

  5. Ron/BC Says:

    Stiffuppper

    Here is the Weekly chart of the $SPX and like the $COMP is past the moon and very overdue for a major pullback. Any Weekly chart typically shows price testing and bouncing off of its 200ema. The $SPX would need to drop another 1300 PTS to just get back to reality. See the March 2020 selloff. Fast and straight down 1400 PTS. It’s actually better to see that than some slow death selloff that takes 6 months or more. And see the $TSX drop 6800 PTS straight down in March 2020 as well. Would not have been easy to exit that market then.

    We stopped shoveling here in Victoria about a week or so ago and the snow is gone now. But it’s a nightmare when it snows here as we just aren’t used to it and people are all over the place and the city isn’t prepared to deal with it. I even saw a bunch of golfers enjoying a no rain day this week at a golf course visible from the road. That was encouraging. Just need the markets to come back down to reality now. But I suspect there will be dead cat bounces that get the believers back in as they have to be all in to feel good. So expect a lot of bad “stock stories” ahead to explain it all away. “OR” let the charts tell the tale for a more accurate explanation.

    https://stockcharts.com/h-sc/ui?s=%24SPX&p=W&yr=20&mn=0&dy=0&id=p69640960486&a=673066405

    https://stockcharts.com/h-sc/ui?s=%24TSX&p=W&yr=20&mn=0&dy=0&id=p12211153296&a=1093149596

  6. Ron/BC Says:

    Stiffupper

    Here is a Daily 2 year chart of the $COMPQ. You can see the importance of the 14175 support level and that seems to be breaking down now. Very important for it to hold here or much more downside even in the short term will likely occur. But the day isn’t over yet. The above ratio charts show the $COMPQ compared to the $TSX and the $SPX.

    https://stockcharts.com/h-sc/ui?s=%24COMPQ&p=D&yr=2&mn=0&dy=0&id=p98857780099&a=1041803119

  7. Ron/BC Says:

    The SH chart is a chart that is looking bullish. A breakout over 14.50 would suggest higher prices.

    https://stockcharts.com/h-sc/ui?s=SH&p=D&yr=1&mn=0&dy=0&id=p58768705630&a=673066316

  8. Rol Lew Says:

    Ron/BC
    I looked at your chart of SH as a haiken-ashi over 5 mths
    Yes, it looks interesting, for right now, & as a way to short the spy/ s&p
    https://stockcharts.com/h-sc/ui?s=SH&p=D&yr=0&mn=5&dy=0&id=p70857698724&a=673066316
    Maybe today it can manage a close above resistance at 14.5.

  9. Stiffupper Says:

    Ron/BC. Thank you and ouch, what a day! I’m not certain what smarts more, my lower back or my stock account.

  10. Ron/BC Says:

    Rol Lew

    Yes the SH does look like it has a lot of potential and isn’t an expensive ETF either at 14.75. I’ve never used a haiken-ashi chart before but it sounds like a good way to smooth out price action. SH is overbought but can become extremely overbought as well. A brief pullback to that breakout point or even 14.40 Monday plus with a close above 14.50 would be what I’d like to see to get long Monday. Only thing is there are a lot of big names that love to squeeze the short sellers and create a rally but that tends to fizzle out too once the short sellers have thrown in the towel.

    https://stockcharts.com/h-sc/ui?s=SH&p=D&yr=0&mn=6&dy=0&id=p67072532848&a=1101015611

  11. Ana Says:

    The target for S&P 500 Futures, is 3975 to 4321.

    This is a large range however this will be adjusted next week.

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